BSH Just Inaugrated their New Refrigerator Factory in Mexico for French Door Refrigerators To Fuel North America Growth Strategy

North America is a massive market in terms of both size and value across different kind of products & Industries. The home appliance industry is one of them.

BSH home appliance division of BOSCH just opened their first home appliance factory in Mexico producing french door refrigerators to fuel the north america growth plans.

This is not the first factory BOSCH opened in Mexico but it is the first home appliance factory.

Yet some might ask why did they start with the french door refrigerators. Simply the french door refrigerators is the highets ticket in all types of refrigerators with its high price point and spacious capacity where consumers invest more money to get one.

Another good observation, if you visit a website like Lowes or Best buy and try to see how much is the share of French door refrigerators from all available models, you will be astonished.

In Lowes, the number of frenchdoor fridges compared to the total is around 37.3% and in Best buy it is around 42%. Now that tells you that the frenchdoor category in the US is the biggest which would justfiy a deep focus on such category in specific to fuel growth for BSH especially with higher price point.

Forexample, a GE 21.9 Cubic Feet top freezer highest price is 1,199 USD while a GE 21.9 French Door is prices at 2,499 USD (108% more expensive , ofcourse due to higher complex refrigeration system and components) and while highest price for same capacity French Door is around 3,499 USD (191% more expensive).

How would this move affect BSH pricing and positioning in the US market will be another question mark that will be answered only by time whether savings from freight & localization of components cost will be

• Utilized for higher profit margin
• OR used for more competitive pricing especially with the pressure from Chinese brands as Haier, Hisense and Korean brands as LG & SS

Let us know your thoughts in the comments