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Brand War Presents a New Trend in the Upgrade and Transition Period of Home Appliance Industry

01-05-2012 10:45 BJT

Shi Li

As the stimulating policies like “home appliance to the countryside” and “the old for new” are to expire, the competition in the home appliance industry intensifies, and the brand war presents a new posture of “a hundred pacesetters contend”. Reviewing the 2012 CCTV Prime-time Auction, we have found out that the home appliance industry is a Top Three sector in terms of total bidding amount, up 15% year on year.

With the integration and expansion of traditional home appliance enterprises, the “100-billion-yuan club” has emerged

This year, the home appliance industry has entered the integration period with frequent integration actions. On this wave, we can see Haier, Midea, Hisense Kelon and Galanz, and the development of home appliance industry has been adjusted into “integration” mode from normality.

Midea Living Appliances Group has optimized and integrated the production line, and established the Department of Clean and Health Services. It is expected to launch a high-end sub-brand in two years. Haier will re-position its two listed companies, Qingdao Haier and Haier Electronics, to build two systems with different focuses. Galanz has released to the public the “strategic integration of microwave ovens, household appliances and kitchen appliances”, aiming to hit the small household appliance market with combat groups.

Along with the integration, such keywords as “100-million-yuan” and “rebuilding” have been synonymous with the future development of home appliance enterprises. Changhong announced its strategic development plan for the coming 3-5 years in July this year and came up with the goal that the revenue would break through the threshold of RMB 100 billion in 2013; He Xiangjian, Chairman of Midea Group, has released to the public the slogan of “building another Midea” in five years, and the sales revenue of Midea Group is expected to achieve RMB 200 billion in 2015; Skyworth Group has also put forward the long term goal to achieve the revenue of RMB 50 billion in five years and RMB 100 billion in ten years.

In the middle of this year, CCTV Advertising Center had a communication with China Household Electrical Appliance Association, and the Director of the Association said that Haier, Midea and Gree would build a “100-billion-yuan club” of China’s home appliance industry. Among these home appliance giants, the diversification of Midea has seen a great momentum, Gree enjoyed a stable development, and Haier, based on the acquisition of Sanyo, accelerated its overseas development. These three enterprises have become the backbone of the auction this year.

At the auction on November 8, the bidding amount of Midea was over RMB 30 million. Midea won the three advertisements of “2010 Spring Festival Package” to display its products including air conditioners, washing machines and small home appliances, and spread the coziness of the family at the time of happy reunion. Besides, Midea has won the bidding of the special and exclusive program of “See” on CCTV-1.

Household Appliance made outstanding performance

With the improvement of people’s living standard, various household appliance products that can provide convenience for public consumption such as electric rice cookers and electric pressure cookers have been increasingly favored by the market. According to data, the demands of small home appliance market in 2011 are still expected to rise, and China’s small home appliance market mainly including microwave ovens, electric rice cookers, induction cookers, electric ovens, electric pressure cookers, electric steamers and other products is expected to maintain the growth of 20% in the previous year, eyeing the RMB 100 trillion revenue.

On July 11, 2011, Philips announced to acquire Povos. A day later, ASD signed an agreement with BBK to acquire its small home appliance business.

In the bidding, home appliance enterprises represented by Joyoung, Midea Household Appliance, Supor and Robam made outstanding performance, focusing on the prime-time advertising slots to seize the high-end platform for next year’s release of new products and peak-season promotion.

Intelligent and high-end products become the new impetus for market growth

In the first half of this year, products like intelligent TVs, 3D TVs, inverter air conditioners, drum washing machines and high-end refrigerators emerged one after another. According to the data provided by ACMR, the retail sales volume of invert air conditioner increased 120% year-on-year; drum washing machine 21.84%.

On November 8, Zhang Rongzhong, Vice President of Hefei Royalstar Sanyo Elctronics Co., Ltd. stated in front of media that “China’s home appliance industry is the product of free market economy, which has grown out of nothing and is now at the crucial stage of being stronger. The core of being stronger lies in the high-end breakthroughs, one of which is about the brand and another is the support behind the brand – the products. As the home appliance manufacturer focusing on washing machine and microwave oven, Hefei Sanyo is aimed to make more brand construction and promotion for the high-end brands.

Editor:张昀 |Source: CCTV

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