€100 Candy washing machine intensifies price pressure in Italy
Euronics is offering a Turkish-made Candy washing machine for €100 in Italy, down from a previous price of €400. Il Foglio links the promotion to aggressive competition by Chinese-owned appliance brands amid excess capacity and weak demand in China.
A €100 washing machine tests the Italian market
A Candy washing machine offered by Euronics for €100 has become a highly visible example of price competition in Italy’s household-appliance market. Il Foglio reports that the model was previously sold for €400 and can be purchased on its own, rather than only as part of a bundle with another full-price product. The newspaper describes it as a loss-leading promotion, while acknowledging that it may be a special or one-off initiative.
The machine is manufactured at a large plant in Eskisehir, Turkey. Candy, the historic Italian brand formerly controlled by the Fumagalli family, is now owned by Chinese multinational Haier. Haier has closed Candy’s plant in Brugherio, according to Il Foglio, but continues to compete in the Italian market. Euronics is also offering a 9-kilogram Haier washing machine for €199.
Haier distances itself from retail pricing
Haier Europe told Il Foglio that it does not determine consumer selling prices, which are set independently by individual retailers. The company consequently declined to comment on what it called isolated promotional initiatives by individual stores. Il Foglio nevertheless argues that promotions of this type are generally difficult to carry out without consultation with the manufacturer.
The €100 offer is far below the benchmark cited by the newspaper for a comparable European-made appliance. According to figures reported by Il Foglio, an Indesit washing machine in the same segment has an industrial cost of €189 and is normally sold on promotion for €290. The comparison does not establish how Euronics financed the Candy discount, but it illustrates the scale of the gap confronting rival brands and retailers.
Excess capacity moves into European competition
Il Foglio connects the pricing offensive with excess manufacturing capacity in China, which it attributes to subsidized investment and insufficient domestic demand. The newspaper says China’s internal market is contracting and cites a 25%-30% decline in construction. In its account, large Chinese brands are accepting lower margins, drawing support from provincial administrations and intensifying efforts to gain positions in Europe.
For European appliance producers, the immediate risk is not limited to the volume sold during one promotion. A €100 reference price can alter consumers’ expectations in an Italian market that Il Foglio describes as stagnant. Manufacturers producing in Europe must then defend higher prices against competitors able to combine Chinese ownership, production outside Italy and aggressive retail offers. Retailers may gain traffic and price-sensitive customers, but repeated promotions could compress category margins and make standard-priced inventory harder to sell.
The broader competitive question is whether unusually low offers remain isolated or become a sustained market-share strategy. Il Foglio argues that state support allows Asian brands to sacrifice margins while pursuing European customers, with profitability potentially recovered later. The newspaper places appliances in a wider sequence that has included steel, electronics, solar panels and cars. For producers, traders and investors, the key indicators will be the frequency of these promotions, their spread beyond Italy and whether European manufacturers respond with discounts, capacity changes or demands for trade-policy action.
