HERAN: New Product Prices Rise to Reflect Costs; Sub-Brand Targets Budget Market
Taiwanese appliance maker HERAN announced price hikes for new products due to rising raw material costs. The company will use its sub-brand YAMADA to capture the budget market while maintaining Sharp for high-end consumers.
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- 📰 Published: April 23, 2026 at 21:13
- 🔍 Collected: April 23, 2026 at 21:32 (18 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 23:00 (1h 28m after Collected)
(CNA Reporter Pan Zhi-yi, Taipei, 23rd) Home appliance maker HERAN stated today that the war in the Middle East has caused raw material prices to soar, prompting an increase in the prices of new products to appropriately reflect costs. Its budget sub-brand YAMADA now accounts for nearly 10% of total revenue. The company hopes to pair this with the existing HERAN brand and its agency for Sharp to capture the low, mid, and high-end markets respectively.
HERAN held an institutional investor conference today. General Manager Lin Chin-hung stated that the conflict in the Middle East has driven raw material increases up too sharply, requiring an appropriate reflection of costs. However, highly competitive products will see lower price hikes, meaning price increases will vary across product lines.
HERAN Deputy General Manager Lei Chia-chun pointed out that air conditioning accounts for the highest proportion of overall revenue, followed by televisions. However, the public's TV-watching habits are not what they used to be, with many now using smartphones and tablets to binge-watch shows.
He noted that HERAN entered the washing machine and refrigerator markets relatively late, so manufacturing is currently focused on air conditioners and TVs, while small appliances are outsourced. Selling Sharp products targets the high-end market, but competition is fierce. Although HERAN is the largest local brand for air conditioners, there are still consumers who prefer low-priced products. Therefore, YAMADA is used to satisfy this market demand. Even when competing with white-label appliances, YAMADA's relatively lower prices still come with the brand's after-sales service and meet national tier-one energy efficiency standards.
Regarding logistics and warehousing, Lin Chin-hung believes that the cost of building their own warehouses in northern Taiwan is too high. Currently, they prefer to maintain leases. As long as prices are reasonable, they are open to dealing with logistics and warehousing providers, even those that are affiliates of competing appliance companies.
As for the dividend policy in recent years tending towards retaining cash and issuing stock dividends, Lei Chia-chun explained that this is primarily for business expansion, including developing the sub-brand. Regarding overseas markets, although they previously exported to Southeast Asia through OEM formats, any future overseas push would prioritize Southeast Asia again. For now, however, overseas markets are not being considered. (Editor: Yang Lan-hsuan) 1150423
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HERAN held an institutional investor conference today. General Manager Lin Chin-hung stated that the conflict in the Middle East has driven raw material increases up too sharply, requiring an appropriate reflection of costs. However, highly competitive products will see lower price hikes, meaning price increases will vary across product lines.
HERAN Deputy General Manager Lei Chia-chun pointed out that air conditioning accounts for the highest proportion of overall revenue, followed by televisions. However, the public's TV-watching habits are not what they used to be, with many now using smartphones and tablets to binge-watch shows.
He noted that HERAN entered the washing machine and refrigerator markets relatively late, so manufacturing is currently focused on air conditioners and TVs, while small appliances are outsourced. Selling Sharp products targets the high-end market, but competition is fierce. Although HERAN is the largest local brand for air conditioners, there are still consumers who prefer low-priced products. Therefore, YAMADA is used to satisfy this market demand. Even when competing with white-label appliances, YAMADA's relatively lower prices still come with the brand's after-sales service and meet national tier-one energy efficiency standards.
Regarding logistics and warehousing, Lin Chin-hung believes that the cost of building their own warehouses in northern Taiwan is too high. Currently, they prefer to maintain leases. As long as prices are reasonable, they are open to dealing with logistics and warehousing providers, even those that are affiliates of competing appliance companies.
As for the dividend policy in recent years tending towards retaining cash and issuing stock dividends, Lei Chia-chun explained that this is primarily for business expansion, including developing the sub-brand. Regarding overseas markets, although they previously exported to Southeast Asia through OEM formats, any future overseas push would prioritize Southeast Asia again. For now, however, overseas markets are not being considered. (Editor: Yang Lan-hsuan) 1150423
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The text, images, and audio/video of this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.