Ten-year scale competition China's home appliance industry entered the era of technological competition

White power giants, the United States, Gree "Sword" world battlefield, black power leader Changhong, Skyworth, Konka strategic layout of the entire industrial chain, home appliance chain giants Suning, Gome's expansion.

Reviewing the ten years after the accession to the WTO, home appliances achieved a breakthrough of 100 million yuan to 1,000 billion yuan. The world's most important markets and potential future forces have become the battlefield for many domestic and foreign companies.

However, while the entire industry chain is bringing together in China, the domestic appliance brands are resounding throughout the world, and home appliance companies are firmly facing the international market.

Scale competition industry upgrade

Throughout the decade, the most obvious change in home appliance companies is the expansion of scale and capacity upgrades.

Compared with a decade ago, the sales revenue of China's home appliance industry grew rapidly from 170 billion yuan to trillion yuan; the export trade has turned 20 times from nearly 7 billion US dollars. The scale and momentum of expansion of home appliance chain stores are even more powerful. As of the end of 2010, Suning had more than 1,500 stores; the number of Gome stores totaled 826; it is expected to open 700 stores by the end of 2014.

Home appliances to the countryside, trade-in, energy-saving benefits and a series of policies introduced, but also to accelerate the scale of home appliance companies to upgrade.

Hisense senior executives said: "The gap between companies is very large and has turned several times. In 2000, the company's sales were more than 40 billion yuan. At present, the statistics have reached more than 200 billion yuan, which has increased by 5 times."

At the same time, going out for more than a decade ago has become a slogan for home appliance companies. Overseas mergers and acquisitions have also become an important means for the global expansion of China's home appliance companies. Haier, Lenovo, Midea, Hisense, TCL and many other companies have embarked on an M&A expansion path early and are now competing with overseas markets.

"From cultivating the domestic market to opening up the international market, the brand products of the United States have occupied a certain market share in the world in the past ten years," the relevant person in the United States told reporters.

Well-known industrial economic critic Hong Shibin believes: “China's household electrical appliance companies have grown and expanded, and the biggest benefit is to drive foreign brands out of the Chinese market. We are dominant, and the Chinese market has just entered internationalization, and our initiative is even greater. Sony Panasonic Siemens The degree of worship of foreign brands is very large. Now people are no longer tangled up. The share of white domestic brands is very high, with almost an absolute advantage.

Ten years of strategic decisions determine success or failure?

The appliance industry has undergone several changes throughout the decade, and during this period, large and small home appliance companies have been able to implement reforms and transitions, either actively or slowly, actively or driven. However, the facts show that speed often plays a key role in success or failure.

“The product structure was mainly based on CRT in 2000. After transitioning to the flat panel, doing the module in 2007, and doing LED in 2008, including foreign brands such as Panasonic and Sony, and making a rear projection, when it is uncertain, Hisense can say that It is the earliest and most complete transformation. The time is latitude, strategic decisions are the most important, and every strategic transformation of Hisense has not been a big mistake.” Hisense told the reporter.

“The home appliance chain is an industry with a heavier local color, and the real advanced model Best Buy relies on the difference in the fixed price of the product to make a profit. The Chinese home appliance model is varied, and the products are sold at different prices for profit, real estate, etc.” said Hong Shibin.

Luo Qingqi, a senior observer of the home appliance industry, said: “Difficulties in exports are a big problem for us at that time. After China's accession to the WTO, the advantages of the Chinese market were brought into play. The demand in the Chinese market was relatively large and sustained. From the market point of view, production requires relatively low prices in the global context. Advantages, effective reduction of overall costs, active technology and innovative atmosphere.”

Ten years after China's accession to the WTO, China's home appliance companies have created a gateway to the international market. Chinese brands must truly ring through the world and have a stable presence in the international market. There are still many obstacles.

Large-scale transformation pressures increase

The home appliance industry has gradually changed its development model that relies on cost-driven development. In recent years, home appliance companies have announced their desire to enter the "100 billion club." Changhong relevant person in charge said: "In the industry's major transformation to seize the initiative."

The personage inside course of study points out: "The financing ability of the enterprise is very important, at present this enterprise is a leap, the financing ability of the enterprise supply chain is strengthened."

"The next phase of competition for home appliance companies is in technology, the first three decades in the marketing era, the last three decades in the technology, industry-driven requirements of technical specifications are high, the competition should return to the original product, technological innovation, Apple's innovation Nokia As an example, when profits of many companies are falling, the profits of companies supported by technology are getting more red-hot,” said Hong Shibin.

Luo Qingqi told reporters: “Under the current situation, the competitive strength of enterprises highlights our view of the three lines: technology line, scale, cost line, and management line. With the accession to the WTO, some countries still do not recognize the competitive position of Chinese enterprises and anti-dumping trade. Barriers exist, to ensure that technology does not lag behind, product pricing rights only have a basis.Technological progress is not a long time, it is a difficult process, arms race in the technology field; Second, cost advantage is the greatest advantage of Chinese companies, low cost to obtain a high share of the advantages. The cost line is the lifeline of competition; at the same time, it faces complicated global market environment, puts forward strategic management requirements for global market expansion, tactical model expansion, changes in strategic vision, and what kind of new ways to organize technical level and cost advantages become the focus of trade terminals. At the same time as the negotiation capability is strengthened, the competitiveness is also strengthening."

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