Profit for the household electrical appliance enterprises still too early to mid

Recently, Konka, Hisense, TCL, Changhong, Xiamen Overseas Chinese and so on successively published the 2007 interim financial statements, outside the huge loss of inter Xoceco, TCL, after losses in two consecutive years has come in the first profitable reported, Konka, Changhong was 42.47 million yuan respectively, and 1.9 billion net profit. Some people believe that China will usher in home appliance manufacturing industry operating profits on the spring, and pointed out that in the second half of the National Day, New Year and Chinese New Year will usher in sales of home appliance market peak, the annual reports of good corporate performance can be expected.

In fact, the mere listing of categories on the home appliance company in the first half of mid-year report to determine the most businesses and even entire industries operate successful, it is biased, the Chinese appliance to get rid of lack of core technology, profit and performance of the embarrassing situation, around the over trade barriers, leading the world market, still needs a long process.

Should be noted that home appliance industry suppliers in the upstream, midstream and downstream manufacturing facilities appliances home appliance chain channel, to date, the entire value chain does not form a harmonious development of win-win situation. Led by the appliance manufacturer manufacturing chain is under a tremendous pressure on the squeeze under the pain, the upper mold development, product design, technology continues to introduce new materials in the upstream and downstream channels and channel operators also the relationship between customer and product depth introduction of anti-reflective and constantly adjust the control strategy of the manufacturer. This force does not have core technology, is located in the middle of the appliance maker in the continuous innovation of products and technologies, while looking for new breakthrough way, from the simple pursuit of enterprise scale, turning the pursuit of the concept of marketing, management quality and corporate profitability.

Author of weak corporate profits, household appliances and found the reasons, first, short-term strategy and profit-oriented Chinese enterprises obvious characteristics; Second, Chinese enterprises and mechanism of the present system dictates, although the office market economy, but the leaders of state-owned enterprises and encouraging mechanism is still in the plans of the times, frequent personnel changes, can not really feel free to continue to do business and strengthen health; third home appliance industry is obviously insufficient technical reserves, patents, technology and standards is the competitive weapon and source of profit, and home appliances manufacturing has not yet forged the advantage in this regard; Fourth, continuing the vicious cycle of competition, many appliances do not have core technology, can not bring a premium brand, but for market share, only to the price war, Enterprises continue to advance the survival of resources; five cost-cutting capacity is weak, household appliances enterprise management, high marketing costs, management quality and efficiency is not high, this is cause the product to an important reason for low profitability; 6 is to be mature people's consumption concept , consumption habits and regional disparities, need rational guidance.

China's population is aging, migrant workers low-cost era will end, there is a huge manufacturing country and the innovation gap, we must understand that a strong manufacturing capacity to China is not fundamentally bring about a sustainable and stable business profits, decreasing resources and the various costs continue to rise today, the Chinese manufacturing industry to win the future, get rid of the embarrassing fate of the foundry, you must first get rid of the core technology of the "short leg walking" approach, so as to enhance the added value of products, capabilities and brand premium their overall competitiveness.

Always rely on imitation of the survival of a business or industry there is no hope, innovation and value is the future, the only way for the future of home appliances in China. Therefore, household appliances profit Center Daily News applauded too early.

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