The best always comes by accident. For China’s home appliance industry, which has been running fast for 40 years, every change always appears inadvertently, but it is enough to affect the development process of the whole home appliance industry. For example, in the past years, home appliance enterprises have been “pushing new sales high” in business transformation, and now they are transferring from offline physical stores to online e-commerce. What unexpected gains will this bring to the home appliance industry in the new round of reform?
Zhou Jian’s contribution
Go high, go wide! With the overall improvement of the competition in the home appliance market in 2021, it is becoming a new strategic direction for the upstream and downstream enterprises of the whole industry chain to push forward together. However, what the household appliance industry didn’t expect is that in this new wave of “high-end, quality-oriented and scene oriented” jointly led by consumption upgrading and industrial transformation, in addition to the power of Haier, Midea, Hisense, Sony, Bosch Siemens, FanTai, Jiuyang and SUPOR, another important force represented by Jingdong is emerging Quantity has become the initiator of the “last mile” of this round of reform.
At awe2021, the home appliance circle saw that, in addition to the original new technology and new products, the solutions represented by complete set, scene, and whole house home appliances continued to attract attention. In particular, in the Jingdong home appliance exhibition area, not only a group of home environment in the 1980s and the sense of the future are displayed, directly attacking the brand-new experience of new life given by the upgrading of home appliances; at the same time, the limitations of single brand and product display are also overcome, such as the “family of three” dads and Chaoma, “Buddhist health” chaodian, as well as the second dimension of new style gourmet family, playboy, pet school and animation All kinds of product solutions, such as circle, show the new business pattern of China’s home appliance market from the consumer side.
Many people from home appliance enterprises said frankly that the biggest business breakthrough in recent years is to lead the whole industry to “go up” and base on the new situation of value under the long-term doctrine, whether it is Haier, Midea, Gree and other brand giants, or Jingdong and other retail giants. In particular, the retail sector at the end of the industrial chain is shouldering the explosive burden of this new change.
The whole industry chain of household appliances “go up”
In the past, many people in the home appliance industry always like to use the term “spring river duck prophet” to describe retailers. They are very strong and sensitive to changes in consumption trends and preferences. Now, for the home appliance retail giants, what makes them surprised is that home appliance enterprises have a more accurate and sensitive grasp of the strength of retail channel platform.
Since the opening of the first round of home appliance market in 2021, Sony Bravia XR new game TV x91j and Hisense European Cup customized u7g Pro Series XDR TV, covos ecovacs T9 floor sweeping robot, Hisense Xinfeng air conditioning and oxygen cleaning series X6 new products, as well as Haier, Midea, Gree, Bosch, Siemens, LG, Wanhe and a large number of new products of home appliance enterprises, have selected Jingdong platform for the first pre-sale. As a result, it also opened the curtain of the whole home appliance retail market’s “push new high” home market change since last year.
According to industry insiders, in the past, offline stores, with strong experience and other advantages, have always been the launch place and promotion home of annual new products, boutiques and high-end products of major household appliance enterprises. However, in recent years, with the change of consumption habits and the comprehensive opening up and integration of online and offline e-commerce platforms, platforms such as Jingdong have replaced them as the main venue of “pushing new and selling high” of major e-commerce brands. In particular, as the first channel of home appliance retail, Jingdong has become the first strategic choice for Chinese and foreign enterprises to launch new products and boutiques.
Behind this new round of business transformation strategy of home appliance enterprises, the home appliance circle believes that it mainly benefits from the multi forces of “from the inside out”. First of all, after more than 10 years of business expansion and development layout, e-commerce has not only become the first platform for home appliance retail, but also the vane of new consumption trends and new trends. Especially with the growth and change of the first group of home appliances online shopping crowd, their consumption ability and consumption consciousness have changed comprehensively, and they have become the main crowd of high-end new products and boutiques of home appliances. Finally, many home appliance enterprises take the lead in smelling the business opportunities brought by the changes in the ability of the main consumer groups of the e-commerce platform.
Secondly, with the establishment of online and offline two-line business pattern of e-commerce platforms such as Jingdong, it not only solves the problems of user experience and interaction, but also solves the information transparency, purchase convenience and service efficiency that users expect. As a result, for home appliance enterprises, the launch of new products brought about by the “integration of product and effect” under the e-commerce boundless retail mode has completely solved the embarrassment of “short-term speculation is not hot, long-term sales are not moving” in the past when high-end boutiques are listed in physical stores. Recently, Midea water purifier and water heater, which are equipped with Huawei Hongmeng system, sold out on the first day of listing on the JD platform without any promotion.
Moreover, since the second half of last year, with the continuous rise of bulk raw materials, a large number of home appliance manufacturers’ price management strategy of “cost price is retail price” has been impacted in the past, and round after round of price increase letters have triggered the reflection of the whole industry. Whether it’s the upstream suppliers of household appliances, or the brands and retailers, facing the main consumer groups of household appliances who have entered the upgrading channel for two or three years, the best way to solve the impact of the rising price of raw materials is to explore “value management”, that is, the whole industry chain jointly “push new products to sell high”, so as to avoid the periodic impact of the rising price of raw materials and meet the demand with better technology, products and services The demand of customers.
According to the report of China’s home appliance market in 2020 issued by China Institute of electronic information industry development, Ministry of industry and information technology of the people’s Republic of China, the retail volume and retail volume of TVs with more than 10000 yuan in Jingdong increased by more than 70% year on year; the penetration rate of WiFi intelligent air conditioning market increased from 49% in the previous year to 63%; the retail volume and retail volume of refrigerators with more than 20000 yuan soared by 126% and 132% respectively; and the retail volume of clothes dryers increased significantly 4%, especially in the second and third tier cities, reaching 112.6% and 124.3% respectively. This set of data shows from the side: in this round of “upward” reform of the household appliance industry, e-commerce is becoming a new home for all household appliance giants to “push new and sell high”.
The first home for Chinese and foreign enterprises to push new sales
Since 2021, driven by the rising effect of raw materials, the price space of low-end machines and middle and high-end products has become smaller, which also makes 8K high-definition TV, sterilization and fresh-keeping refrigerator, fresh air air conditioner, washing machine and clothes dryer set, as well as dishwasher, sweeper and Mopper, beauty instrument and other personal care appliances have a round of “small spring” in e-commerce platform.
Going up, for all manufacturers in the home appliance industry, this does not mean that the prices of products will rise in an all-round way, and new products will be priced in an all-round way. Instead, they will broaden their business strategies, improve their business quality, and achieve sustainable operation by providing users with “value-added” services. Among them, the biggest change is to explore the personalized, interesting and diverse needs of different circle users from the past price and service, and provide a series of solutions from technology, products, services and customization to complete sets.
In fact, over the past 20 years, various categories of household appliance enterprises have started a round of business strategy transformation in advance, such as “high-end, high-quality” and so on, but with little effect. On the one hand, a large number of high-end products and new products are just “launched” to the market, and it is not clear what the users want and which users are the target objects; on the other hand, restricted by the traditional channel structure and mode, there is a lack of accurate portrait of the user group and accurate prediction of the demand, which leads to the long-term promotion of high-end products “Hot”, lack of industrial chain collaboration.
Recently, a new round of business reform of “pushing new and selling high” for home appliance manufacturers is quite different. First, the original intention of this transformation is not only for manufacturers to pursue high profits, but for users to pursue high-quality lifestyles and solutions, and then force home appliance manufacturers to adjust and change their product business strategies; second, the power of this transformation is not only for the major home appliance brands in the middle stream, but also for the retail giants in the downstream, forming a “multi force cooperation” mode The business situation is broken, especially by relying on the user portrait and demand accurate capture of e-commerce platform to quickly break the ice in the middle and high-end market; third, the prospect of this round of transformation is not only that the needs of the middle and high-end consumer groups are met and released, but also that the resources of the upstream and downstream enterprises in the whole industrial chain are integrated to achieve the landing of “user operation”, so as to help the high-quality development of the home appliance industry Exhibition.
In particular, novel coronavirus pneumonia affected the consumption scene from offline to online last year, which led to a rapid increase in the overall market structure. Report on China’s home appliance market in 2020: in 2020, the retail sales of online home appliances were 419.9 billion yuan, up 14.48% year on year, 3 percentage points higher than that of the previous year; the retail sales of offline channel home appliances were 413.4 billion yuan, down 21.13% year on year. The proportion of online retail sales in the total retail sales of household appliances market has increased from 41.17% in 2019 to 50.4%, which is the first time that the annual penetration rate of online retail sales has exceeded 50%, equal to that of offline retail channels.
It is precisely following the new trend of this round of changes in the home appliance industry that the home appliance circle has learned that the retail giant headed by Jingdong, in fact, as early as last year began to cooperate with the leading enterprises in various categories through strategic cooperation, based on c2m reverse customization, as well as Jingpin home appliances, market-oriented home appliance renewal activities and other “combo boxing”, finally from product, technology to marketing and service Lanzi solutions will become a new home for the home appliance industry, and will also drive more and more enterprises in the whole industry to improve their business quality on the new platform and home.