China's home appliance channel reform is imminent

At the 2013 China Household Appliances Expo, the China Household Electrical Appliances Association and Avid Consulting (AVC) co-organized the "First China Household Appliance Industry Annual Channel Business Conference." At the scene, the reporter saw that not only representatives of many channel companies spoke enthusiastically, but also the active participation of corporate representatives and professional visitors made the site very popular.

Zhang Yanbin said: "This year's channel business conference has been so valued, indicating that the transformation of China's home appliance channel is near. Whether it is manufacturers or businesses are very sensitive to this change."

“The channel is closely related to the development of China’s home appliance industry. It is exactly one leg in two legs. One is a product and the other is a channel. With a good product, there is no channel to sell, but there is a channel but there is no good product. The product that goes out is also a waste product. Therefore, these two are really indispensable, and our current market really places great emphasis on channel development."

According to Zhang Yanbin, this year's channel change has two characteristics. First, the channel sinks, and the second is the channel "electricity." “The former e-commerce is a traditional online retailer. Now chain companies and distributors are also chasing e-commerce. Not only big chains, small chains, but also manufacturing companies are chasing. This is an important change in channels this year. Features."

According to data statistics of the authoritative data organization Aowei Consulting, in 2012 the home appliance industry in the e-commerce sector grew by nearly 80%, but it was still very small in the overall sales of the home appliance industry. Among the products sold through e-commerce channels, refrigerators accounted for 1.8%, air conditioners 2.9%, color TVs 5%, washing machines 6.8%, and the overall average was only 4%.

Zhang Yanbin said: "Although the proportion is small, but the e-commerce incitement factor is very large. On the one hand e-commerce is the future direction of development, we all realize that this direction, and in the future there may be an important channel for home appliances, in addition to offline Online is also very important, and we cannot ignore it because it represents our future."

Channel sinking Ovid Consulting data shows that at present the home appliance products are relatively saturated except for the air conditioner external primary market. According to calculations, the number of air conditioners currently owned in cities is currently 130 units per 100 households, and the actual saturation should be around 250 units, that is, a family should have 2-3 air conditioners.

"Air conditioners have a lot of demand in the primary market that comes from popular demand. More growth is still in the third and fourth-tier markets. Urbanization in particular has brought very large growth potential to the countryside." Zhang Yanbin said, "One is The current rural income has greatly improved, and there are many policy support; Second, the concept of consumption has undergone great changes, rural consumers dare to consume. Color TVs, refrigerators, washing machines, air conditioners have yet to be popularized, such as the popularity of air conditioning Only 30% more, the industry saw this, so the channel began to sink."

In recent years, except for the traditional home appliance chains such as Suning and Gome, which have actively carried out channel sinking, the concept of “last mile in the countryside” has been implemented, including areas like Dafangda, Huiyin, Baicheng, Siping, Tongcheng and Xinglong. The chain has been growing up and growing in the rural market.

Zhang Yanbin analyzed that: “A lot of regional chains, such as multi-party marketing, are targeting the rural market. Unlike the big chains of the first-tier market, such as Suning and Gome, the regional chain of the three-four-tier market, apart from self-operated stores, relies mainly on franchise stores. The big chain once opened a store in the county market, but quickly withdrawn, because the cost of opening a store itself is too high, and the frontline experience cannot be replicated, so the big chain also sought a franchise, but the damage to its own brand could not be achieved. Control, and profitability is weak, so it can not succeed."

“However, regional chains have the advantage of being familiar with the local market, opening stores, and joining companies with low costs. They can also use the characteristics of chain brands to purchase goods in a unified way, reduce procurement costs, and are very flexible in their own operations, such as the e-commerce of regional chains. Online shopping mall, offline stores can be completely shipped channels, such a chain in the growth of such an incremental market in rural areas, the potential is very large.” Zhang Yanbin said.

Strangling and integrating E-commerce this year will undoubtedly be a tragic market. The "OTO mode" headed by the Suning Department, the B2C mode of the Jingdong Mall, the Tencent Department, the "C2C" mode of Taobao, and the "Chongqing Financial Platform" launched by the CCB, and CCTV's "CTV" "Shopping" will make this area even more tragic.

"This year will inevitably collapse the next batch of e-commerce, but what is left is the real elite." Zhang Yanbin said, "The stores around 2000 were also springing up, but after a few rounds of integration, they were all strong and Knowing the laws of the market. E-commerce is also true."

Zhang Yanbin believes that the most important basis in the field of e-commerce is the "professional division of labor." He said: "If a company does factories, develops channels, and eats upstream and downstream, it will squeeze other people's development space, and it will also build more opponents. At the same time, due to a single product line, it is difficult to develop."

“From now on, after a few rounds of competition, it will surely be down one batch, but it is definitely an elite to stay.” Zhang Yanbin said.