China’s commercial offensive in Italy begins with a 100-euro washing machine

It may well be a special offer, it may even be a one-off, and it might just set a Guinness World Record for selling below cost, but a Candy washing machine on offer for just 100 euros is certainly newsworthy. The long-established Fumagalli family business has long since been taken over by the Chinese multinational Haier (the company that sponsors the bodycams worn by Serie A referees), which closed the Brugherio factory but has clearly not given up on competing with the utmost commercial aggression on the Italian market. The €100 washing machine, manufactured in Turkey at the massive Eskisehir plant, is available in Euronics shops and is being used by the chain as a loss leader – as evidenced by the fact that it was previously sold for €400, and initiatives of this kind generally cannot be implemented without consulting the manufacturer. When asked, however, Haier Europe stated that “it does not intervene in the setting of retail prices, which are determined entirely independently by individual retailers”. Consequently, “the company does not comment on isolated promotional initiatives by individual outlets”. Even if this were merely a promotional initiative by Euronics, the idea would remain in consumers’ minds that it is possible – that a washing machine can indeed be sold at that price. And this perception is bound to influence the market, which is already stagnant.

According to figures currently circulating, a washing machine in the same price range—let us say an Indesit manufactured in Europe—has a cost price of 189 euros and is normally sold on promotion for 290 euros. Meanwhile, Euronics also sells the 9-kilogram Haier model for just 199 euros. In many cases, such low prices are offered as part of a bundle deal involving two products, one at full price and one at a discount. In this instance, however, the washing machine can be purchased on its own. Such aggressive commercial policies stem from developments in the People’s Republic of China. Xi Jinping’s country has a colossal surplus of production capacity, the result of subsidised investments designed to boost annual GDP growth figures, but demand is insufficient and the domestic market is contracting (construction is down by 25–30 per cent)To hold their ground, the major brands are fighting tooth and nail, making the most of subsidies from provincial authorities, sacrificing profit margins whilst, at the same time, stepping up their efforts to capture the European market. The key is to secure market share and, if necessary, at a later stage – once competition from the Old Continent has been eliminated – to manipulate prices to restore profitability.

It is clear, in fact, that in the face of a commercial offensive, the European household appliance industry has its days numbered; it cannot hold out for long. Asian brands can capitalise on this pincer movement because they enjoy state support, which guarantees capital expenditure and organises a sort of Darwinian selection process. Those who manage to survive are effectively regarded as a sort of national champion and enjoy state protection in export markets. They began with the steel industry, then property, then electronics, then solar panels and cars. The next frontier is that of digital services and Agentic AI. The effect is disruptive not only for Italy but also for neighbouring countries still in the development phase, which are doomed never to achieve more decent per capita incomes. China wants to remain an emerging economy and an industrial economy, covering all sectors – even those with low added value – and achieving total and complete self-sufficiency. It imports almost nothing anymore.