Appliance industry seeks transformation from mass production to quality

Whether large appliances or small household appliances, the business model of small profits but quick turnover has been gone forever, high-end, differentiated gradually become a new growth point for home appliance companies. Xu Dongsheng, general secretary of the China Household Electrical Appliances Association, said that high-end will continue to be a key development target for the industry, and sales growth will continue to be faster than sales growth.

Data show that from January to October 2012, domestic large home appliances sales have dropped by 10%-20%. TV retail sales of 1.09 billion yuan, retail sales of 270,000 units, respectively, down 18.42% and 13.91% over the same period the previous year. The air-conditioning retail sales amounted to 1.02 billion yuan, and the retail volume was 298,000 units, down 13.37% and 21.56% respectively over the same period of last year, which was the largest decline. Retail sales of refrigerators were 610 million yuan, and retail sales were 224,000 units, down 10.57% and 12.9% respectively from the same period of last year. The retail sales of washing machines were 420 million yuan, and the retail volume was 200,000 units, down 9.82% and 13.92% respectively from the same period of last year.

In appliance analyst Liang Zhenpeng's view, the collective outbreak of sales in the home appliance industry was due to the irritating policy of overdrawing the market and the real estate industry. In the past few years, the state has implemented irritating policies such as "home appliances going to the countryside" and "replacement of old ones", which have severely overdrawn the home appliance market in the coming years. In addition, a large part of the sales of home appliances depends on the construction of new houses and the occupancy of users. However, in recent years, the government has not relaxed its control of the real estate industry, making this part of the demand severely constrained.

Liu Buchen, an appliance analyst, once said that in the country's implementation of stimulus policies, home appliance companies need to prevent "policy dependence." The country has given out policy assistance in the face of weak domestic demand, and it can promote the sales of home appliances and improve the operation of home appliance companies in the short term. However, in the long run, home appliance companies should not rely on policy incentives to survive. China's home appliance companies, sheltered by policies for a long time, are not conducive to winning the market in global competition.

In addition, industry experts pointed out that the market's downturn is partly due to price wars among companies. Price war is a double-edged sword. Excessive price war not only damages opponents, but also leaves a "dark injury" for themselves. The price war allows companies to focus more on how to reduce costs and reduce sales prices. As a result, not only is no novel technology emerged, but the quality of the product is set back by the cost of compression, and a long-term vicious circle will continue to form.

"To get rid of this vicious circle and realize the healthy and sustainable development of home appliance enterprises, we must adopt the strategy of high-end and high-end."

Nowadays, the high-end of home appliances has become imminent, and it is also an opportunity for home appliance companies to soar. At present, the main consumers of household appliances are mainly “after 70′′ and “after 80′′, and their concept of consumption is upgrading. High-end energy-saving products will receive more attention. This is the trend of market development. In addition, Japanese and Korean products that were previously superior to the past are facing quality problems and companies have encountered major difficulties. Relevant experts said that as long as the domestic home appliance companies adjust their business models, focus on product development, and push the high-end products, the future will surely grow steadily.