14 June 2004 14:46
Gas boiler leader seeks to enter Russian market
By Chang Yeojean Rinnai Korea, a leading gas appliance company in Korea, seeks to expand in the fast-growing Russian
market.
Although Russia is considered a difficult market because of its limited experience with free-market principles, the
country recorded 7 percent economic growth last year. Russian President Vladimir Putin encourages active development for
economic growth and a boom in construction economy is expected to generate more demand for air conditioners, heaters and
gas boilers, giving hope to Rinnai Korea.
Products of Germany and Italy have shown strong brand powerr, but those of Rinnai Korea have gained positive reaction
from local dealers and customers. Rinnai's boilers received recognition during a sub-zero trial run in Yakutsk, in
northeast Russia.
This year, Rinnai plans to expand its sales network to 15 major regions in Russia with the aim of selling 5,000
boilers.
The company follows a localization marketing strategy. Its parallel pipling method, which can produce 100,000 kcal
per hour, is designed to meet user's local conditions. Rinnai also emphasizes after-sale service, in hopes of
enhancing brand recognition and customer satisfaction. Regular education of engineers is ongoing at each branch office.
Founded in 1974, Rinnai Korea started its business jointly with Rinnai Japan. Founder Kang Sung-mo witnessed the
convenient use of gas ranges during a business trip to Japan in early 1970s and introduced the appliances to Korea. Home
products by Rinnai include a convection oven that acquired GD (Good Design) recognition, stoves, gas ranges and boilers.
Rinnai products for restaurants, schools, hospitals and companies include gas rice cookers, gas grillers, gas fryers,
gas range, gas broth pots.
The company's gas boiler lead domestic sales with a 25 percent market share, having earned a reputation for
being a convenient and effective home heating product. Gas ranges of Rinnai Korea take more than 40 percent of entire
market share. Rinnai Korea also supplies highly efficient oil boilers to districts in which city gas is not
provided.
Rinnai seeks top leader in oven range market as well. In 2001, it released gas oven range series "JEWELL."
The brand boasts multi functions and differentiated design motivated from Picasso's work. Connecting the home
network system and developing high-speed Internet ovens is ongoing to reach customers' demand.
With its motto "Management by human nature and reason," the management ideology of Rinnai Korea has set its
ultimate objective in improvement in life culture. "Management by human and reasons" refers to a business
operating with warm feelings that help others adhere to the right path, where the company could be a field of
self-realization thus contributing to society and improving the quality of life for everyone.
Another company principle is "Customers as our benefactors" and "We are all brothers and
sisters," to deal with its production in a more fruitful way and lead the business life for all individual staff
with self-consciousness based on unity among members.
(yeojean@heraldm.com)
[The Korea Herald] |
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