Appliance maker Joyoung bets on American vacuum firm
The two companies will jointly promote vacuum cleaners, air purifiers and other household products in China
Chinese kitchen appliance maker Joyoung has bought into SharkNinja, an American vacuum manufacturer in a 12.49 million yuan (US$1.87 million) deal that will secure a controlling 51% stake, Yicai.com reported.
The two companies will jointly promote vacuum cleaners, air purifiers and other products in China.
Joyoung, which used to be China’s largest soybean milk machine company, has entered a period of stagnation, as the market for its main product line has been declining in recent years.
While vacuum cleaners, as major environmental health appliances, have been on a strong upward trend. For example, the size of China’s vacuum cleaner market in 2017 reached 14.7 billion yuan, an increase of 45.4% from a year earlier.
However, insiders think SharkNinja’s brand awareness is still weak in China and it will take time to localize its products.
Currently, some of the vacuum cleaners introduced from the United States are relatively large in size and slightly bulky, which requires them to be customized for use in Chinese houses.