Future development trend of China's household appliance manufacturing industry
Issuing time:2021-11-27 17:04
China's home appliance industry is one of the earliest industries opened to the outside world, with a high degree of marketization. The vigorous development of China's real estate in recent 20 years has brought development opportunities to the home appliance industry, making the overall sales revenue of China's home appliance manufacturing industry exceed 1.5 trillion in 2017, and global and international enterprises such as Midea, Haier and Gree have sprung up. At the same time, the R & D level, manufacturing level, product level and management level of China's household appliance manufacturing industry are also improving. Many home appliances produced in China are of high quality and low price, and sell well at home and abroad. They have replaced Japan and South Korea as a manufacturing power in the home appliance industry.
However, with the change and turn of domestic real estate policies, the repetition of anti globalization voices in the world and the development of mobile Internet, IOT, big data, cloud computing and AI, it has brought profound impact and changes to the future development of China's home appliance industry. In fact, from January to October 2018, China's household electrical appliance industry entered a "cold winter" that has not been seen for many years, and the market demand of most household electrical appliances showed negative growth.
How will China's home appliance industry develop in the next 5-10 years? First of all, the performance in the sales channel is "import competition". The so-called "entrance" refers to the main channel for consumers to buy a series of complete sets of products. Import competition is the competition of main sales channels. Saving time, worry, effort and money is always the ultimate goal pursued by consumers. Both manufacturers and channels hope to turn a single product into a complete set of products purchased by consumers through the entrance.
Due to the compulsory hardcover sales policy in some big cities, real estate developers have become the entrance of the whole household appliance project. Moreover, due to environmental protection and high efficiency, the compulsory hardcover sales policy is likely to be gradually promoted in major cities across the country. Home appliance enterprises should strive to become partners of developers. In the project channel, as long as the policy remains unchanged in the future, developers will probably monopolize the channel.
Large home decoration companies, existing home wire online and offline platforms, such as JD COM, tmall, Suning, Gome, even Xiaomi, Haier, Midea and other large household appliance manufacturers are at the entrance of the highly competitive retail channel. Tmall and jd.com Com relies on the traffic advantages and IOT controlled portals such as tmall genie to realize the complete purchase of household appliances; Haier and Midea rely on the advantages of all categories and brands and their own Internet of things platform to promote complete set procurement. There are also some large home furnishing enterprises, such as Europe. Their joint designers try to promote the purchase of all household appliances from the concept of whole house customization. The competition of retail channel entrance involves many industries related to real estate decoration, including design industry, decoration industry, household appliance industry, online sales platform, offline sales platform, etc. it is relatively complex, but the most promising entrance should be a better enterprise or platform combining consumer Internet and industrial Internet, such as Midea, Haier and Xiaomi. Although tmall and JD Com has traffic advantages, but how to provide and integrate IOT services is the bottleneck factor. Individual products can entrust manufacturers to provide services to solve their own problems, but IOT needs system construction, product connection, product maintenance, etc. Large platforms can only make up for these deficiencies through deeper cooperation with home appliance manufacturers.
Secondly, large-scale production and small-scale customization coexist in the household appliance industry. Various surveys show that the hobbies and interests of the post-90s are very different and personalized. The development direction of China smart manufacturing 2025 is also to meet the personalized needs of this era. Big data can help enterprises identify the personal needs of small groups. Home appliance enterprises can receive personalized orders from consumers through their own websites, apps and wechat service numbers, and then transmit the data to their own digital supply chain and flexible production system, so that the production of finished products received by orders can be digitized, automated and intelligent. The realization of personalized production is not very difficult, but can be realized through the current technical means. The question is how high is the realization cost? How fast is the response time? Whether consumers can accept it. However, it is entirely possible to gather groups with the same interests for small-scale customization, such as differentiated customization of color, appearance and some functions. Small scale customization of home appliance manufacturers is also a powerful weapon to compete with sales channels for entrance.
60% of China's urbanization process has been completed, but 40% of the population still lives in rural areas. Therefore, there is still a market for large-scale mass production standard products with relatively low cost.
Finally, there will be a borderless alliance of enterprises and small and medium-sized enterprises. Throughout history, every major technological progress has exacerbated the industry monopoly, and the Internet, IOT and AI are no exception. Alibaba, Tencent enterprises and affiliated enterprises are all evidence. The development of IOT also provides monopoly opportunities for Midea, Haier and other large enterprises with complete home appliance categories and complete supply chain. These enterprises have the opportunity to establish their own "kingdom" to compete with channel sellers and other non household appliance enterprises trying to enter. In the future, enterprises with complete categories, complete supply chain and diversified operation may have more resources and barriers to win competition, which is caused by the development of the Internet and the intensification of competition. At the same time, in the whole life cycle, the demand of consumers is not constant, especially young consumers. Their consumption will upgrade with the increase of age and income. Therefore, the full coverage of product lines or multi brand operation of household appliance enterprises is also a trend contained in Haier, Midea and other enterprises with "scale advantages".
So, how will small and medium-sized household appliance enterprises survive? That is, "warm up and form an alliance with each other". On the one hand, we should make up for the shortcomings and shortcomings of our respective product lines; On the other hand, we need to establish a unified IOT platform, personalized ordering platform and service platform to compete with home appliance enterprises. Of course, we can rely on the strength of the sales platform here.
In short, the future competition of home appliance manufacturing industry is the competition of sales entrance, scale and resource advantages, and intelligent small-scale customization. The number of enterprises will be further reduced and concentrated, and the relationship between enterprises and channels will become more and more complex. Large enterprises or alliances, but enterprises with flexible, flexible and intelligent production methods will stand out.