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subject: Who The New Pattern Of Small Appliances Is The Appliance "terminator" [print this page]


Chinese home appliance industry after 20 years of development, refrigerators, washing machines and air conditioners major home appliances brands in the market share of high basic oligopoly has entered the competitive landscape, the form of a high concentration of major brands, trade raise barriers to entry, market competition into the mature stage. The contrast of small household appliance market, because of its many product categories, company size and level vary significantly, so the quality is uneven, industry competition, more disordered, but because of some small household electrical appliances, the profit is relatively abundant, and relatively low barriers to entry, So many brands and large enterprises to small businesses competing private participation in fight, temporary lakes of smoke, the more representative of the product comes as the appliance.

Industry conditions

Induction is a principle of electromagnetic induction heating using a modern appliances, which originated in Europe, is now quite popular in Europe and the United States. Back in the late 80s, a lot of production in Jiangsu and Zhejiang cooker, but because of immature technology, poor product quality, many products can not be normal use, the industry died before victory for sending! After the beginning of 2000, winding paths, the industry welcomed the spring blooming. In 2002, Taiwan's high-profile brand is his wife announced that China will invest 2 billion yuan Sharu appliance market. The face of tempting cakes, of course, have full-fledged domestic firms would not choose silence, in 2004, the U.S. started a small home appliance group spent 30 million yuan, the official to enter the appliance market, and vowed to become a leading brand in the field. Later, Glanz, Aucma, LG and other brands, and Jiangsu and Zhejiang, Guangdong, where many private small businesses have also set foot in the appliance market. Currently 80% of the appliance business in Guangdong Province, Zhongshan, Shunde and mainly the remaining 20% are located in Jiangsu and Zhejiang Provinces, but the scale is not very high.

According to incomplete statistics, the mainland market, a total of about 300 cooker brand to compete, several hundreds of manufacturers, from the view of development trend in recent years, the domestic appliance industry can be said to fame. Data show that the appliance market in China in 2003 total about 340 million units, 6.8 million sets in 2004, 2005, 15.5 million units, in 2006 more than 22 million units, cooker kitchen appliances in growth has become the most eye-catching products.

According to the company's retail Sino monitoring data analysis, the appliance brand in 2006 has further increased the degree of concentration trends, the market share of the top 10 brands was 92.6%, while in 2005 this data was 90%. Top 5 brand share from 64.5% in 2005 rose to 68.7% market share and further concentrated to the first-line brand, which the United States for more than 30% market share, accounting for industry-leading position, 9 Yang, Fuji Po, etc. 10 % of share in the second Corps, in a rising star in Glanz, Supor are all faster-growing brands.

The export side, and compared to other small appliances, electric stove, not a big export volume, export share of total output accounted for about 10%. 2006, annual export volume of only 210 million, but the rapid growth, and in 2005, an increase of nearly 50%, export potentially very strong.

Competitive strategy

From the appliance market situation analysis, the domestic appliance market is in rapid import growth stage of the transformation process, the rapid growth in the industry must compete to attract large companies to share the profits of industry. Participants from the market point of view, mainly in the following two strategies options:

1, the scale of competitive strategy

Competitors through branding, funding capacity in the short term the formation of scale, through economies of scale, reduce costs, rapidly occupying the market by pricing the use of their scale and cost advantage to stop the expansion of opportunities for competitors. Representatives of the major manufacturers in this field there is the beautiful and Glanz. Such as beauty on the establishment of the annual output of 1200 million cooker industrial park, its ambitions in this area is evident. With the siege of these enterprises clearly place an extra price competition is usually fierce. Recently, Galanz to launch a "general offensive end of the year of small household appliances", on a number of high-grade induction cooker, rice cooker for sale price cuts, including a number of top-selling high-end appliance fell more than 40%.

Who The New Pattern Of Small Appliances Is The Appliance "terminator"

By: nanafg




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