Weak sales of home appliances

Excessive competition in the home appliance industry, and to the end of the year regardless of home appliance manufacturers, or home appliance dealers are engaged in vigorously engage in promotions, special round one round, gifts one by one.

In the face of a huge market with a population of 1.3 billion people in China, the home appliance market space has been increasing slowly, and home appliance manufacturers are trying to increase profit margins. However, the weakness in sales and the high cost are still problems.

Appliance makers profit "pressed"

According to the reporter, at present, the average gross profit margin of products such as home electric color TV sets and refrigerators is 15%-20%, and brand premiums can reach 20%-30% higher for companies, and average gross profit margins for small household appliances and kitchen appliances are 20%-30%. At present, in all home appliance industries, the profit performance is relatively good for air-conditioning enterprises, and the average gross profit margin is about 20%.

The three quarterly report data shows that Qingdao Haier's gross margin was 25.39%, Gree Electric Appliance's gross margin was 24.81%, Midea Electric Appliances (22%, Hisense Electric's gross margin was 17.58%, TCL Group's gross profit margin was 15.62%, and the overall gross margin of the household appliance industry was 24.95%. Most of the household appliances Corporate gross profit margin is lower than the industry as a whole.

A home appliance manufacturer told reporters that due to too many sales channels to increase prices, domestic appliance manufacturers are facing higher cost pressures and profits have been meagre. "If the color TV production cost is 2,000 yuan, after the next production line, the overall product promotion and sales chain will account for more than 50% of the price space, or even 70%, including 10% of the terminal sales expense rate and after-sales service fee rate; 20% The logistics and warehousing distribution package; 2%-5% brand promotion expense rate, etc. The cost of home appliance manufacturers increased by 30% in the third quarter of this year."

Industry economic observer Liang Zhenpeng pointed out: "At present, for home appliance companies, the space for fare increase is mainly in taxes, fees, logistics, brand promotion, and so on. Generally, the gross profit of home appliance manufacturers is between 20% and 30%, so it is enough to guarantee home appliances. The company has ample room for profit and maintains normal production promotion."

"A powerful way to solve high costs can be through strengthening online sales. At present, home appliance manufacturers really have less sales to open online, and high profits are closely related to corporate cost management capabilities. At present, several major home appliances giants still have strong management capabilities. The high revenue does not mean that the net profit is also high, and the management ability of small and medium-sized brands needs to be improved, said home appliance analysts.

Xu Dongsheng, secretary-general of the Household Electrical Appliances Association, told the reporter: “From the point of comprehensive gross profit of home appliance companies, the overall household appliance industry is still at a low profit. The household appliance industry is relatively competitive and there is currently no obvious profitable industry.”

Vacuum cleaners and other small household appliances high gross margin

With overcapacity and the influx of product prices, the white-electricity market has grown slowly and the profit margins have been compressed. “Good times are not always in” Once the gross profit margin was once as high as 50% in the area of ​​small household appliances, after the rapid expansion of the market, it eventually became dull.

With Aucma, ASD, Jiuyang shares, Vantage shares and a number of household electrical appliance companies have entered the field of small household appliances and home appliances giant diversification, small appliances competition is fierce and hot. In recent years, the gross profit margin of some small home appliances has even been lower than that of white goods such as refrigerators and air conditioners. However, in view of the entire home appliance industry, there are still small profits and "pure lands."

Industry economic observer Liang Zhenpeng pointed out: “The gross margin of the household electrical appliance industry is currently high. Brand premium capacity is maintained by companies with gross profit margins generally ranging from 20% to 30%. Drum washing machines and other subdivided areas are relatively special. The current gross profit is 30%-50%. Even higher, however, the industry will still enter a new round of reshuffling or recapitalization. With the increase in barriers to entry and the increase in brand concentration, the industry with a product with a gross profit margin below 10% will have a long-term loss or even a loss. 'death'."

It is understood that in the current home appliance industry, the higher gross profit is none other than vacuum cleaners, humidifiers and other small household electrical appliances, as well as range hoods, stoves and other kitchen and bathroom products, the gross profit margin of the two is about 50%; air conditioning, refrigerators and The profits of white goods such as washing machines are still comfortable. The gross profit margin of refrigerators and washing machines is about 30%, and air-conditioning is about 20%. Malay color TV in household appliances is low, generally less than 10%.

White and then the low price banner

Stimulated by energy-efficient subsidy policies, home appliance revenue and profit growth improved in the second half of the year. In the absence of strong macroeconomic recovery at home and abroad, the bulk of raw materials related to home appliances has been declining, which has increased the profitability of home appliances.

In the second half of this year, with the overall pick-up in the home appliance industry, the industry's main business grew by 3.84% in the third quarter after two consecutive quarters of negative growth. In terms of subdivision, the growth rate of black battery and kitchen power is good, and Baiyin's main business is positive for the first time in nearly a year, which promotes the overall growth rate of the industry. Some home appliance companies in the industry started to pick up low-cost banner again and they wanted to open up the market.

“In the current slowdown and shrinkage of the overall growth of the home appliance industry, the low price strategy is not desirable. The overall quality of the home appliance industry in China is low, the product reliability management level is low, and the product repair rate is high. There are many methods in the market, such as making some construction-type changes in the quality and appearance of the craft, etc., will easily obtain a good market reputation, low-cost strategy is not an ideal and wise choice.The current market share of monopoly appliances giants success The reason depends largely on stronger quality craftsmanship and higher brand credibility." Liang Zhenpeng said.