Most of microwave that are sold in the world are manufactured by the same company. And it is China

When you look for a New microwave It usually goes to a commercial area to see the available models, which are of different brands and that have different benefits and prices. The surprise is that most of them are manufactured by a single company.

The microwave company. Based in Guangdong, Midea is the most important appliance manufacturer in the world. It is by far the largest microwave producer throughout the planet, and although part of them are sold under that brand, many others are actually made for other brands such as GE, Whirpool, Toshiba or badge.

Although they look different on the outside, it is enough to take a look at the rear to verify that many models are variants of the same template. Source: Wirecutter.

A first level OEM. It measures not only manufacture their own appliances, but also a good part of their business is to be a gigantic OEM (original equipment manufacturer). Or what is the same: build for others. As They point In Slashgear, brands such as GE, Whirpoool, Badge or Sharp use those services

Market share. There are no official data of the company, but it is estimated to measure factory about 40 million microwaves a year, and the global market In 2023 it was between 110 and 130 million distributed units. That means that it measures between 30 and 35% market share, even more.

Shared components. This is the reason in addition to the fact that many microwave have such a similar aspect at external levelbut also are similar internally. Components such as capacitors, ventilation grilles or rear panels or coincide – as if they start from the same template – or are very similar.

A silent giant. Measurefounded in 1968, had a total of 190,000 workers in 2023, and its geographical presence is enormous: it is in more than 200 countries, which basically its products are to a greater or lesser extent present worldwide. Both directly and through its role as OEM.

Hello, scale economy. Midea’s domain is due to its domain of the economy of scale in this sector. By manufacturing huge amounts of microwave, this manufacturer benefits from cost savings and that allows to offer better prices in these models. That, in turn, contributes to such “white brand” models – as happens With many food products– Be bought by brands that only have to add aesthetic details to these models. Brands save the manufacturing part and invest in marketing, distribution or support services.

Local competitors. There is some other OEM like Galanz – also Chinese, and also based in Guangdong – that manufactures microolandas for RCA or Avanti. These brands are better known among American consumers, but in reality these manufacturers work for brands of appliances around the world.

Above all, those of entrance range. The brands, of course, are not especially transparent in this area and there are no specific data on the agreements they have with measures or which of their models (if there are) are manufactured by this Chinese giant. Even so, the practice is common in its input range models, both in the US and in Asia or Europe. Here Siemens, Bosch, Electrolux or Teka (which announced that I measured it in April) are some of the brands that use Midea services as OEM. For the average and high ranges models, manufacturers do usually produce their own microwave.

Well for our pocket. The truth is that this Midea domain allows consumers to end up benefiting ourselves from entry ranges that have more accessible prices. The options for those who prefer models with more performance are there, but in the end you opt for an economic model, we insist: it is quite likely that whoever is behind is measured. That does not take away for that there are no risks: When a manufacturer dominates both a market, it can also impose its own conditions.

Image | Jonathan Cooper

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