China Appliances Target Philips Market as Incomes Double: Retail

China’s demand for cheap home appliances is waning as the government phases out subsidies. In response, domestic companies are entering Royal Philips Electronics NV (PHIA)’s market with high-end devices, including a red washing machine that sterilizes shoes and can cost eight months of a family’s disposable income. Export of the fancy appliances, including three-door refrigerators, may follow if the products are successful and will ...