Small household electrical appliances falling profits disorderly competition end
This entry
Home Appliances
Market
As Haier, Gree, Midea and other home appliance giants have increased investment in small appliances and small household electrical appliances within the competition heats up, small home appliances Nearly half of gross profit has declined; the same time, with the brand focus degree of increase, small home appliances small brands out rate of no less than a large appliance??
Disorderly competition in the market hot
Increasing as people's living standard, microwave oven, induction cooker has already become a part of family life, electric heating, humidifiers become the new darling of consumers. Especially in the last two years, consumers increasing demand for small appliances, small household appliances sales soaring, high growth and high profits attracted struggling campaign of traditional consumer electronics market frequently favor the home appliance manufacturers. In 2004, Kelon's largest home appliance such as a number of traditional manufacturers to small appliances to battle the cake. The giant easily invested 100 million yuan building a small home appliance production base, known as entire line into the small appliance market.
Winter, humidifiers, electric heating and other small appliances relished by consumers, coupled with timely promotions, sales favored them. With the gradual southward cold air, warm in winter also along the south small appliances, while the shares of warmth will heat up sales of other small appliances. Humidifier, soybean milk machine, water dispenser and hotpots, air purifiers and other sales were also optimistic.
Selling small household electrical appliances at the same time, the market appeared more "discordant voices." Oral-B electric toothbrush products because of quality problems were all recalled, small household appliances maintenance problems have emerged. The last two years in Shanghai, small electrical appliances product qualification rate of sample, the average pass rate was only about 56%. The agency survey shows that heating devices that only 73.7% pass rate a large number of three non-existence of small household appliances in the market, resulting in inferior quality but because the incident occurred, there have been warm-up bag of bomb tragedy.
So far, small household electrical appliances has not established a relatively perfect system of after-sales maintenance services, resulting in difficult to guarantee the quality of small household electrical appliances, a problem difficult to repair the problem. The small appliance market immaturity and disorderly operation that the surface of a vibrant small-appliance industry remain uncertain. Insiders pointed out that the early stages of growth in the market if they can not control and eliminate these risks, then the fate of small appliances are really endless trouble coming up.
Brand out of increased profits down
In some large home appliances such as air conditioners, refrigerators, washing machines falling profits today, small household electrical appliances in general 25% -30% of the high-profit enterprise has given rise to a major interest in home appliances. Haier, Gree, LG and other enterprises continue to increase investment in small household appliances, major brands will undoubtedly lead to a small appliance into lower profits and speed up small brands "mortality." With raw material prices and ongoing price war, small appliances profits danger of being further compressed. Such as price wars in recent years, the market's playing far off the mark in the microwave, or even no longer profit at all.
A survey shows that China's household penetration rate currently kettle only 3% of market prospects, the annual market capacity is estimated to reach nearly one billion yuan. At holidays put the kettle boil tea in the living room, both face, but also unconventional! Popular Kung Fu tea especially in the southern regions have a greater demand on the electric kettle, so as with the kettle with the tech market, small home appliances have become the new favorite gift is not surprising.
In the industry, appliance industry competition, after a price war after another, the large home appliances gradually into the marginal profit. In contrast, small household appliances huge profits, has begun to attract the investor's eye, vendors will have eyes on a small household appliance market, hoping to slice, small household appliance market, the "enclosure" movement is vigorous manner forward. According to conservative estimates the industry: the next few years, China's small household appliance market is expected to exceed the capacity to more than 3,000 billion, which does not include the ancillary businesses associated with, and resulting market share. And from the Gome and Suning, etc. The data show that the distribution channels: small household electrical appliances have become their new profit point.
Small household appliance industry is also characterized by numerous and complex brand, concentration is not high, market competition is not sufficient, in addition to microwave ovens, rice cookers, soybean milk, other such as the induction cooker, electric kettle, electric water heaters, electric irons and other products, its industry market share of top four brand values are much lower than 50%. Can be said that these industries are now at "Warring States" period.
But just to enter the domestic market, small appliances shuffle on, it has shown the cruelty of the market. It is reported that, in microwave ovens, rice cookers, vacuum cleaners, fountains and other small household appliances industry, often four or five brands on the market sales accounted for 75% -85%. Among the major home appliance stores, microwave ovens, 80% of sales Galanz, Haier, LG, America's occupation, and Supor, the United States accounted for a rice cooker sales of more than 70 per cent.
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