Companies are facing more risk when market new products due to the fierce competition, shortened product life circle and increased advertisement costs in the late part of 20th century. To obtain a higher accepting rate of new products, more and more companies adopt brand extension strategy. Brand extension has become a focus of marketing research。But most of the brand extension strategies were failed, while the strategy had been well accepted. What’s more, the brand extension is the most difficult to plan and handle in its management, and it's a kind of job needing high technology. Any mistakes in the decision of strategic importance will make the value of the brand property decrease, bringing strategic losses to the enterprises.
Appliance industry is currently the highest degree of market sectors. This paper reviews the theory of the development process of brand extension. At the same time, combining with the status of Chinese home appliance industry widely use brand extension. I will extract the systems theory of brand extension for Chinese home appliance enterprise how to propert the brand extension to put forward reasonable proposals.
KEYWORDS：Brand，Brand extention，Appliance industry
