Nov. 1, Xinfei Electric announced the shutdown, into the state of reorganization.This is not the first stop of the new fly, following the two short-cut incidents in 2012 and 2013, the new fly this stop production, there may be a farewell refrigerator production and sales , But only leave the brand management business.In a sense, the "fall" of Xinfei reflects the dilemmas and struggles of the older generation of household electrical appliance enterprises in the transitional tide.
New fly completely 'fall'
In the restructuring of the new flying instructions, the new fly said the past few years the company sustained losses, can not be completely restored the situation, forced by the capital chain pressure, only to stop production activities. The company has submitted an application to the local court, ready to enter the reorganization mode After that, the court will assign someone to supervise the reorganization, the company will sell the assets to obtain cash, and will also consider licensing the new fly trademark to the intended party.
Xinfei main refrigerator business, its new brand of refrigerators, was founded in 1984, reached its glory in 1996, setting the top three national refrigerator brands and ranked China's refrigerator industry, "Four Golden Flower" good results. In 2004, Singapore-based Hong Leong, a subsidiary of Singaporean company, took over the company and increased its capital to 90% by 2005, taking over the management of Xinfei Electric Appliance Co. Ltd. The outside world believes that the decline of Xinfei Co., Ltd. started from the injection of Hong Leong Asia.
Data show that by the end of 2005, the market share of the new flying refrigerator also ranked third in the country, after 2010, slipped to No. 6, the market share of only 6.27%, ranked Haier, Rongsheng, Meiling, the United States, Siemens after. Internal documents show that in 2011 the new loss of about 200 million new aircraft, a loss of 180 million yuan in the first half of 2012. As nearly 10 years did not rise wages, the end of 2012, the new refrigerator outbreak of the whole plant strike, the workers The conflict with management intensified rapidly.
From 2005, the first three in the country, the refrigerator industry 'Four Golden Flowers', sliding to the top five in 2010, and then closed down today close to liquidation, the new flight took 12 years. 12 years, in fact, enough of a business Adjust the state of operation, to cope with the market changes.NewFei failure, internal and external factors are prepared, it is distraught.
Internal factors, the performance of the new flight continued to decline, largely due to the high turmoil and failure to adjust the management system.In 2005, Singapore, Hong Leong fully funded investment in the new aircraft, the original management of the new flight have left, replaced by Hong Leong Asia Brought into the top managers.New managers do not understand the Chinese home appliance market, but also eager to introduce an international management system, the introduction of new management systems, processes and norms, although the decision-making process rigorous, but the link is more complicated, the middle and above More and more management positions, long decision-making time, inefficient management and high costs, the conflict between management and workers intensified. The strike in 2012 caused the resignations of top executives from Singapore.
External factors, the appliance industry is highly competitive, the refrigerator market in the past 10 years, the scale of growth slowed down, or even negative years of growth, while the traditional refrigerator products are highly mature products, the difference between the various products in 2010 before and after Large .2007 home appliances to the countryside in some parts of the pilot national policy, the first to enjoy the new freezer policy preferential policies to shorten the appliance to the countryside to stimulate the sales of new flyers to 20% annual growth rate However, after the exit of the policy in 2011 , The new refrigerator sales decline.
This is because the new fly failed to seize the policy of bringing home appliances to stimulate the breathing opportunities brought by those years to adjust their business strategy in a timely manner so that their strength with the teammates that year the gap between the larger and larger. After the refrigerator industry began to meet the tide of consumer upgrades, most major brands of refrigerators have been consciously research and development to upgrade technologies and products, the value-added products to more high-end direction traction.Market, Haier, the United States to develop stronger spending power A second-tier cities, put in high-end products.
Reflected in the product design, Haier, the United States, as well as Meiling, capacity sound, the same price of products, their products earlier introduced a cross refrigerator, pay more attention to the appearance of more beautiful design. Upgrade slower than competitors, most of the products are still mainly in the low-end in the second and second-tier markets, the brand image of the new flight is also in the low-end, and the successful promotion of high-end Haier, the United States opened a larger difference.
In the heyday, the capacity of the company to produce refrigerators up to 6 million units in 1996. In 1996, the company produces 1 million units of refrigerators annually, generating profits of up to 300 million units. From the beginning of 2011, it entered into a sustained loss status, Stop production events, vitality, difficult to rise.
A second-line brand widening gap
If the 'fall' of the new fly is a mirror, illuminated the refrigerator industry will face the major challenges facing the major brands.
As early as 20 years ago, there were Haier, Xinfei, Meiling and Yung-Sheng in the refrigerator industry in China. As Haier is far ahead of Meiling, Rongsheng and Xinfei have dropped out of the list. And foreign brands Siemens continued to rise.China from the data show that China's refrigerator market is currently the top five brands Haier, Siemens, Rongsheng, Midea and Meiling.
Haier substantially ahead in the refrigerator market continued to squeeze the share of other brands, while the United States by virtue of a comprehensive brand of home appliances, the influence in the refrigerator market should not be underestimated .Reporters refer to public data in the first half of this year saw Haier refrigerator market share at In the first half of this year, contrarian growth increased 9.8% to 30.6% and Siemens ranked second.Micron's market share rose from the fourth to the third place with a share of 10.5% at the end of 2016.
As one of two former Golden Flowers, Yung-Sheng and Meiling, while still top-five in market share, are facing unprecedented challenges in their competition with Haier, Midea and Siemens.
Raw material prices and long-term weakness in the refrigerator market constituted a major external pressure on the second and third tier brands. In the first 42 weeks of this year, copper prices increased by 21.6% in total and aluminum prices increased by 25.5%. Almost all home appliance brands were affected by rising raw material prices But different industries, different enterprises, there are some ways to resolve the air conditioning industry, rising costs and the refrigerator industry as serious, but the hot consumer market this year, let the air-conditioning business make a big profit washing machine industry segment breakdown of the relative success of the transformation, the same pull Rose product sales.
The refrigerator industry, under the pressure of rising raw materials, the retail price of low-end terminal models are declining.First and third line refrigerator in the first half of this year, Meiling refrigerator business fell 6.18% year on year gross margin, only 18.61%.
Haier and the United States of the first-line brand, in the second echelon of Meiling, Rongsheng, Oma, constitute another major external pressure Haier refrigerator in the first half of this year revenue soared to 22.7 billion yuan, an increase of 48.49%, its gross profit margin in the first half of this year Although the slight decline, but still up 32.2%, leading the industry .Microwave refrigerator's revenue is more than Meiling refrigerator more than double.Mei Ling, Omar and other second-tier brands of refrigerator revenue, the data in the first half of this year, Only 3 billion yuan level.First-tier brands in the brand influence, channel layout, marketing efforts should be superior to the second and third tier brands, but also continued to squeeze the second and third tier brands market share.
At present, Meiling, Oma, Rongsheng and other refrigerator enterprises are looking for a new market growth point .How to grasp the tide of consumer upgrades, product upgrades, brand rejuvenation, while optimizing channels, the layout of the line, which is their direction to work hard .