Lu Junlie: Chinese home appliances need to be "popularized" to promote "upgrading"

On November 11th, the wave of all-people buying sent out on the “single day” of the “Singles Day” lined up the other days of home appliance sales in 2012 more bleak. Everyone is asking the same question: Why is such a huge consumption enthusiasm and spending power only erupted in one day? What is the consumer's expectation behind the 50 percent discount in e-commerce?

Data show that as of the end of 2011, white goods "Made in China" accounted for the proportion of global production, room air conditioners accounted for 80%, washing machines accounted for 52%, refrigerator freezer accounted for 54%, China has become the world's white manufacturing kingdom. However, in such a kingdom, as of the end of 2011, China’s rural households owned 100 households per household, 62.57 washing machines, 61.54 refrigerators, and 22.58 air conditioners. While we have popularized global household appliances, we still do not have universal access. To yourself.

In such a big era, what kind of strategies will be used by the home appliance industry to support the transformation and upgrading? To meet the arrival of a new consumption era to meet the needs of consumers?

Popularization must first establish a reference product. The so-called reference product is the core brand. Based on the large-scale manufacturing and mature and reliable technology, the trusted enterprise applies the basic function of practicality to the popular industry, making the popular product have the most practical, stable, and mature performance, and it becomes a measure of the cost performance of other products in the category. A ruler, consumers can use this "scale" to determine whether the value of other products is really worth the money. For a long time, the home appliance industry lacks “scale” products. Consumers are faced with the technical description of complex packaging and become a vulnerable group of pricing and information.

Will the popularization movement affect the healthy development of the industry? The answer is no. The two major factors that currently affect the sound development of the industry are: insufficient competition; second, high prices, behind which is the questioning of business development models. In 2012, the industry used “destocking” as an annual strategy. Based on the chasing of revenue growth in the financial statements, large-scale production stocks will be turned into channel inventory, causing overcapacity and stagflation. On the other hand, based on the fear of declining inventory profits that may be caused by the report, there is no positive response to the national energy efficiency subsidy policy, and it is in a state of hesitation and inaction. In fact. The national policy of energy-saving and benefit-minded people is very clear. On the one hand, it promotes industrial upgrading and allows more companies to pay attention to the upgrading of energy-efficient product technologies; on the other hand, through the subsidies of Huimin, more consumers cross the price threshold and purchase more energy-efficient products. Products, forming a comprehensive effect of energy-saving environmental protection companies and markets.

Popularization will not only affect the constraints on industrial development, but will also bring significant comprehensive effects to the industry. First, popularization is the driving force for market expansion. When companies accelerate the transformation of mature technologies into consumer welfare, the rapid expansion of the market is promoted. Second, the drive to popularize technological innovation has accelerated the upgrading of industrial technologies. When enterprises use the mature technologies in a universal way, they must accelerate the research and development of new technologies, push down the popularization of technologies, push up the technology, push it one step at a time, upgrade the consumption, and upgrade the industry. Third, the direction of popularization is first and foremost energy efficiency. Through the advantages of current models, cost advantages, efficiency advantages, R&D advantages, industrial chain integration advantages, and effective implementation of process and cost effective breakthroughs. Fourth, popularization will create a huge incremental market. The market is always bigger than the enterprise, and the market is expanded by popularization, not only creating the current consumption, but also nurturing the market for the future replacement. The incremental market created by popularization does not belong to a single enterprise but belongs to the entire industry. Only by making bigger cakes can we get more cakes. Fifth, the industrial scale effect brought by popularization will not only promote the common development of the upstream and downstream industrial chains, but will also make an important contribution to China's job market.