New energy subsidy policies have been introduced one after another. Small household appliances have not been able to share this policy red envelope because of their low value and fast update frequency. But home appliance companies have recently been active in the small home appliance market.
On June 20th, Haier Electrical Appliances collected two small home appliance manufacturers located in Ningbo and Shunde, accelerating the integration of production resources through channels; Midea and Galanz announced the removal of low-end and small home appliances, and played a high-end strategy, intensifying Differentiate the competition for products. Taking a microwave oven as an example, this small home appliance product has entered the era of high prices. According to the statistics of the China Household Electrical Appliances Association, Galanz, the two giants that account for 90% of the Chinese microwave oven market and more than 70% of the global microwave oven market, has announced that it will stop production and sales of low-end microwave ovens. Midea announced that it will stop selling microwave ovens under 399 yuan in department store supermarkets and stop selling products under 599 yuan in home appliance chain systems. Galanz stated that it no longer puts three or five hundred yuan of low-end microwave oven products into home appliance stores.
Small Appliances "old for new" loud voice
According to a survey conducted by the China Household Electrical Appliances Association, the over-ageing of small home appliances in urban households in China is serious. Compared to large appliances such as refrigerators and washing machines, the idle rate is also very high. The continued “in service†of over-age and small appliances restricts the purchase rate of new products.
“Whether it is the promulgation of the New Energy Efficient Subsidy Policy or the implementation of the “General Principles†of recent smart home appliances, the launch of these favorable policies will undoubtedly play a catalytic role, which will help companies with strong technical forces to expand their competitive advantages.†China Electronics Chamber of Commerce Deputy Secretary-General Lu Jiebo (microblogging) believes that these policies will also accelerate the survival of the fittest in the market. However, in fact, most of the household electrical appliance products are not included in the energy subsidies, especially small household appliances.
Based on such market conditions, the current demand for “replacement of old appliances†for small household appliances is increasing. The reporter was informed that many brands of small home appliances have spontaneously launched the folk version of the "new trade" activities. For example, the United States has successively held several "old trade-in" activities, involving microwave ovens, soya-bean milk makers, rice cookers, induction cookers and other small household appliances. Joining the industry is Galanz, Joyoung, Supor, Pentium and other small appliance camps.
"We must make the entire industry chain profitable"
Two years ago, the United States announced the suspension of production at the time of the main push 299 yuan microwave oven products, can be seen as an attempt to expand into the high-end market. "Since then, we have really entered the transformation of this industry, especially the enhancement of the value," said Zhu Fengtao, general manager of Microwave Appliance Division of Midea.
According to Liu Heqing, a veteran of the home appliance industry, “In the past, domestic microwave oven brands adhered to the low-end market. Japanese and Korean microwave oven brands can only survive in the high-end market. With Chinese companies gradually controlling the global microwave industry value chain, domestic brands are now expanding to the high-end market. To further squeeze the living space of Japanese and Korean brands, some Japanese and Korean brands have already withdrawn from the mid-to-high end market in the past three years."
According to the latest data, in 2011, more than 70 million microwave ovens were sold in the world, and two of the domestic microwave oven companies, Midea, and Galanz produced more than 70% of them. The two giants also have more than 90% of the domestic market share. These domestic representative companies are accelerating their brand positioning. The microwave ovens of Midea have officially announced that Midea will stop selling products under 399 yuan in the supermarket system immediately; in the 3C chain system, it will stop selling products under 599 yuan. For the reasons for stopping sales, Zhu Fengtao said that the entire industry chain has money to make, in order to promote the value of the entire industry to upgrade.
Zhu Fengtao believes that expanding the value of the small household electrical appliance industry includes two aspects, one is to expand the value of consumers. For example, the microwave oven can be changed from a simple heating tool to “satisfy the consumer's nutrition, health, fast and intelligent, integrated cooking platformâ€; the second is to expand the value of the microwave oven industry value chain, namely, the food chain, processing chain, Service chain, including food, food, appliances, services and other links.
“In order to cater to high-end consumer trends, we will also upgrade Steam Cube from a sub-brand to an independent brand and position it as a “Chinese high-end cooking platformâ€. Products are not limited to countertop stoves, but also include embedded ovens, microwave ovens, and pure steam ovens. Implement differentiated management."
More than 50% of high-end brand sales
All along, the real estate market is the benchmark for sales of home appliances. “If the real estate market picks up, it will directly drive the sales of large home appliances.†A kitchen and bathroom company official said, but the real estate policy has little effect on the small household appliances market. According to the data released by the United States, for example, in microwave ovens only small household electrical appliances, sales within and outside the first quarter exceeded 7 million units, and export unit prices rose by an average of 10%.
Although in the first quarter of this year, the small home appliance market fell by 5.2% year-on-year, these factors did not prevent the leading domestic appliance companies from accelerating the deployment of small home appliances. Under the strategy of “Hitting the High Altitudeâ€, the company’s internal sales of more than 4,000 retail data showed that in the first quarter of this year, its high-end brand “Steam Cube†shipped 35% of its overall sales, while its sales exceeded 55%. In Suning, GOME's many retail stores, the average sales price of microwave ovens in the United States has reached 800 yuan to 900 yuan.
“Actually, there are also many negative hype issues on the market, which may cause short-term fluctuations in the sale of small household electrical appliances. For example, recent online foods related to microwave foods may cause cancer rumors, which is nothing out of the ordinary.†Professor Zhang Zhaozheng of UESTC said in food The water, after absorbing the microwave energy, undergoes high-speed rotational vibration, thereby generating frictional heat. Microwaves emitted by current microwave ovens are generally 2.45 GHz and generate enough heat in a short time, but their energy is far from sufficient to change the chemical bonds of molecules. "This is purely physical heating, and the molecular structure cannot be changed." Zhang Zhaojun believes that small household appliances such as microwave ovens will not shrink the market size due to these rumors. "This product was invented in the United States in 1947. There have been no epidemiological reports of cancerous food caused by microwave ovens."
â– Data
Small household appliances industry will receive huge profits
According to statistics from the China National Light Industry Information Center, electric fans and rice cookers still have annual demand of more than 60 million units and more than 10 million units after the peak sales period; sales of microwave ovens, range hoods, and electric water heaters increase year by year. Annual demand exceeds 5 million units; emerging products such as drinking fountains and induction cookers are also growing rapidly. In addition, the policy of expanding domestic demand will maintain a certain growth rate in demand for home appliances. At present, China is in an accelerating period of urbanization. In 2010, the urbanization level of our country will reach about 50%. Every year, 20 million to 50 million rural people will be transformed into urban residents, which can increase purchasing power by about 86 billion to 215 billion yuan.
On June 20th, Haier Electrical Appliances collected two small home appliance manufacturers located in Ningbo and Shunde, accelerating the integration of production resources through channels; Midea and Galanz announced the removal of low-end and small home appliances, and played a high-end strategy, intensifying Differentiate the competition for products. Taking a microwave oven as an example, this small home appliance product has entered the era of high prices. According to the statistics of the China Household Electrical Appliances Association, Galanz, the two giants that account for 90% of the Chinese microwave oven market and more than 70% of the global microwave oven market, has announced that it will stop production and sales of low-end microwave ovens. Midea announced that it will stop selling microwave ovens under 399 yuan in department store supermarkets and stop selling products under 599 yuan in home appliance chain systems. Galanz stated that it no longer puts three or five hundred yuan of low-end microwave oven products into home appliance stores.
Small Appliances "old for new" loud voice
According to a survey conducted by the China Household Electrical Appliances Association, the over-ageing of small home appliances in urban households in China is serious. Compared to large appliances such as refrigerators and washing machines, the idle rate is also very high. The continued “in service†of over-age and small appliances restricts the purchase rate of new products.
“Whether it is the promulgation of the New Energy Efficient Subsidy Policy or the implementation of the “General Principles†of recent smart home appliances, the launch of these favorable policies will undoubtedly play a catalytic role, which will help companies with strong technical forces to expand their competitive advantages.†China Electronics Chamber of Commerce Deputy Secretary-General Lu Jiebo (microblogging) believes that these policies will also accelerate the survival of the fittest in the market. However, in fact, most of the household electrical appliance products are not included in the energy subsidies, especially small household appliances.
Based on such market conditions, the current demand for “replacement of old appliances†for small household appliances is increasing. The reporter was informed that many brands of small home appliances have spontaneously launched the folk version of the "new trade" activities. For example, the United States has successively held several "old trade-in" activities, involving microwave ovens, soya-bean milk makers, rice cookers, induction cookers and other small household appliances. Joining the industry is Galanz, Joyoung, Supor, Pentium and other small appliance camps.
"We must make the entire industry chain profitable"
Two years ago, the United States announced the suspension of production at the time of the main push 299 yuan microwave oven products, can be seen as an attempt to expand into the high-end market. "Since then, we have really entered the transformation of this industry, especially the enhancement of the value," said Zhu Fengtao, general manager of Microwave Appliance Division of Midea.
According to Liu Heqing, a veteran of the home appliance industry, “In the past, domestic microwave oven brands adhered to the low-end market. Japanese and Korean microwave oven brands can only survive in the high-end market. With Chinese companies gradually controlling the global microwave industry value chain, domestic brands are now expanding to the high-end market. To further squeeze the living space of Japanese and Korean brands, some Japanese and Korean brands have already withdrawn from the mid-to-high end market in the past three years."
According to the latest data, in 2011, more than 70 million microwave ovens were sold in the world, and two of the domestic microwave oven companies, Midea, and Galanz produced more than 70% of them. The two giants also have more than 90% of the domestic market share. These domestic representative companies are accelerating their brand positioning. The microwave ovens of Midea have officially announced that Midea will stop selling products under 399 yuan in the supermarket system immediately; in the 3C chain system, it will stop selling products under 599 yuan. For the reasons for stopping sales, Zhu Fengtao said that the entire industry chain has money to make, in order to promote the value of the entire industry to upgrade.
Zhu Fengtao believes that expanding the value of the small household electrical appliance industry includes two aspects, one is to expand the value of consumers. For example, the microwave oven can be changed from a simple heating tool to “satisfy the consumer's nutrition, health, fast and intelligent, integrated cooking platformâ€; the second is to expand the value of the microwave oven industry value chain, namely, the food chain, processing chain, Service chain, including food, food, appliances, services and other links.
“In order to cater to high-end consumer trends, we will also upgrade Steam Cube from a sub-brand to an independent brand and position it as a “Chinese high-end cooking platformâ€. Products are not limited to countertop stoves, but also include embedded ovens, microwave ovens, and pure steam ovens. Implement differentiated management."
More than 50% of high-end brand sales
All along, the real estate market is the benchmark for sales of home appliances. “If the real estate market picks up, it will directly drive the sales of large home appliances.†A kitchen and bathroom company official said, but the real estate policy has little effect on the small household appliances market. According to the data released by the United States, for example, in microwave ovens only small household electrical appliances, sales within and outside the first quarter exceeded 7 million units, and export unit prices rose by an average of 10%.
Although in the first quarter of this year, the small home appliance market fell by 5.2% year-on-year, these factors did not prevent the leading domestic appliance companies from accelerating the deployment of small home appliances. Under the strategy of “Hitting the High Altitudeâ€, the company’s internal sales of more than 4,000 retail data showed that in the first quarter of this year, its high-end brand “Steam Cube†shipped 35% of its overall sales, while its sales exceeded 55%. In Suning, GOME's many retail stores, the average sales price of microwave ovens in the United States has reached 800 yuan to 900 yuan.
“Actually, there are also many negative hype issues on the market, which may cause short-term fluctuations in the sale of small household electrical appliances. For example, recent online foods related to microwave foods may cause cancer rumors, which is nothing out of the ordinary.†Professor Zhang Zhaozheng of UESTC said in food The water, after absorbing the microwave energy, undergoes high-speed rotational vibration, thereby generating frictional heat. Microwaves emitted by current microwave ovens are generally 2.45 GHz and generate enough heat in a short time, but their energy is far from sufficient to change the chemical bonds of molecules. "This is purely physical heating, and the molecular structure cannot be changed." Zhang Zhaojun believes that small household appliances such as microwave ovens will not shrink the market size due to these rumors. "This product was invented in the United States in 1947. There have been no epidemiological reports of cancerous food caused by microwave ovens."
â– Data
Small household appliances industry will receive huge profits
According to statistics from the China National Light Industry Information Center, electric fans and rice cookers still have annual demand of more than 60 million units and more than 10 million units after the peak sales period; sales of microwave ovens, range hoods, and electric water heaters increase year by year. Annual demand exceeds 5 million units; emerging products such as drinking fountains and induction cookers are also growing rapidly. In addition, the policy of expanding domestic demand will maintain a certain growth rate in demand for home appliances. At present, China is in an accelerating period of urbanization. In 2010, the urbanization level of our country will reach about 50%. Every year, 20 million to 50 million rural people will be transformed into urban residents, which can increase purchasing power by about 86 billion to 215 billion yuan.
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