Three Growth Models and Diversified Development of Small Home Appliances Make Great Markets

In recent years, the small home appliance market has been advancing rapidly. It has won the favor of millions of families with its features of fashion, personality, elegance, convenience, and practicality. Large scale of mature products The rapid growth of emerging products and the competition among enterprises have become the characteristics of the development of small household appliances in recent years. According to market survey data, induction cookers, rice cookers and Other products have become more mature after years of development. The product penetration rate is high and the market size is huge. The sales volume in the past three years is more than 40 million units. Electric pressure cookers, electric kettles, soya-bean milk makers and other products are expected to reach 21.71 million units in 2011.

Profit is one aspect, and competition is another aspect. American, Galanz, Jiuyang and other small household appliance industry "elders" firmly hold the market share, Haier, Gree, Backgammon rely on a strong "backing" strongly impact the original pattern, the three-party melee of the group army, single product, cross-border business How to change, it becomes a problem placed before the company.

Integration also saw the consolidation of small household appliances group army gradually rise in the first quarter of 2011, the national home appliance industry sales increased slightly by 1.7% over the same period last year, reaching 269.6 billion yuan; of which, small home appliances market sales have reached 41.4 billion yuan, compared with the same period last year The growth rate was 5.9%, far greater than the growth rate of the traditional home appliance industry. The growth rate of some outstanding small household appliances enterprises is also growing at a speed several times higher than that of the industry.

In the face of fierce competition, “departmental integration” has become the development route for multi-product line companies to choose. The departments that were originally in charge of their own affairs will better play their roles in various fields and cooperate with each other, thus exerting a strong “group army” advantage. Since 2010, Midea Household Appliances Group has begun to separate and re-integrate domestic marketing back-office departments of life appliances, high-quality electrical appliances, environmental appliances, microwave appliances, and kitchen appliances, etc., at NEC Group China. Marketing headquarters under unified management and resource integration. In 2011, Galanz Group was not far behind, and strategically integrated microwave ovens, living appliances and kitchen appliances, attacked the small household appliances market in the form of group army operations, and announced Gao Shizhi’s strategy of building the first domestic small home appliance championship group in high profile.

Some experts said that in the future, the domestic small household appliance industry will form a pattern in which all-round players compete with professional players who have obvious advantages in a certain field. And Jiuyang, Supor and other professional brands have also occupied market advantages in their respective fields. However, with the fierce gunfire of the group army, small household appliances enterprises that fight with a single product will face enormous challenges.

The challenges of the “group army” faced by the deep plowing and cross-border business diversification of single-product companies, other companies did not sit still. Jiuyang, as a company that focuses on soya-bean milk makers, has become an independent company by actively improving its industrial chain. Development protection. Not only limited to the product components, but also to the intricate technology of bean materials, grinding methods and other innovations, extended the entire industry chain from the source, but also provides consumers with a complete set of healthy soymilk solutions. The transformation from simply selling products to providing healthy soy milk solutions. Efforts to deepen technology and strengthen product advantages have gradually become the “weapons” for many small household appliance enterprises that “single goods are king” to snatch the market.

The current problems of cross-border companies are gradually emerging in the market. Due to the lack of more professional products and channels, many businesses are not ideal. Pentium Appliances, one of the cross-border companies, used a series of kitchen appliances such as induction cookers, rice cookers, and drinking fountains, and a series of personal care products such as razors and hair dryers. As it did not dominate in the competition, it was acquired by Philips for 2.5 billion yuan.

Many cross-border companies have learned these lessons and are trying to find a way out. Going abroad to expand overseas markets has become one of the development directions. On June 16, 2011, Haier Electronics announced that it has entered into an agreement with Shengwei International to subscribe for 25,500 new shares of Haihong Investment with US$25,500. Shengwei International is a Chinese kitchenware manufacturer with an annual output of about 5 million small home appliances and has rich export experience. Haier Electric will set up a joint venture company to share its resources for the design, manufacture, and export management of small household appliances and drive Haier's export sales growth. Haihong Investment will be engaged in the sales and distribution of home appliances such as rice cookers, pressure cookers, induction cookers and slow cookers. Based on the impact of inland overseas, it is a policy for many cross-border companies to seize the market.

According to home appliance industry experts, there are three typical growth models for small household appliances, and one type of small appliance “Almighty King” represented by Midea, which covers almost a small household appliance product line; The singles champion "type of enterprise" started from soybean milk and radiated to small household appliances such as juicers, induction cookers, and voltage cookers; there was also a "cross-border representative" led by backgammon, and had matured product operations in other fields. Experience, afterwards, through limited diversification into the associated small household appliances field. The diversification of the group army, single product, and cross-border enterprises has become the three modes of development for small home appliance companies. From scratch, from small to large, and from weak to strong, China’s small home appliance industry has entered a period of strong growth and become a veritable fact. The "big market".

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