In recent years, the fast lane of China's home appliance business can be described as wind and water.
Haier Group acquired GE's home appliances business in the United States, Hisense bought the Toshiba image, the United States acquired the German KUKA, Skyworth acquired the old German TV brand Meizi ... ... With generous capital-style mergers and acquisitions, China's home appliance business in the Catch up with Japan and South Korea in the global market, become the new East Asian home appliance circle domineering momentum.
'Made in Japan' decline, the major old brands have quit
The 1980s and 1990s, Japan's home appliances swept the world.As a driving force for Japan's rapid economic development, the home appliance industry has created a good reputation for the 'Made in Japan' market in the world.When the world's top 500 list, there are 149 Japanese companies , With more Japanese electronics companies entering the top 50, Hitachi 13, Panasonic 17, Toshiba 36, Sony 43 and NEC 48. The Japanese companies had a record of success: 1960 Toshiba produced Japan's first TV picture tube TV, known as the father of Japan's color TV; Sharp developed at that time Japan's only high-end LCD technology, known as the father of LCD TVs; then Mitsubishi Electric bought New York's landmark Rockefeller Center. Japanese home appliance business can be described as a great time.
However, with the passage of time, with the collapse of the Japanese bubble economy, the Japanese manufacturing industry began to decline, but the Japanese home appliance industry can not be spared.As early as 2011, the Japanese home appliance industry, the three giants Sony, Panasonic and Sharp huge losses, including Panasonic's loss The amount of Japanese manufacturing losses created a new high.These home appliance giants despite the arm and foot rectification reform, but still failed to prevent the continued decline in operating performance.
Huge losses coupled with huge debt, so that Japan's household appliances began to gradually withdraw from the appliance industry.With Toshiba, for example, in late 2015, Toshiba will be its color TV factory in Indonesia and a washing machine manufacturing base sold Skyworth; 2016, the washing machine , Refrigerators and other main white goods business subsidiary sold to the United States, the medical equipment sector sold to Canon; the first half of 2017, agreed to 18.9 billion US dollars to sell semiconductor business to Bain Capital leading 'Japan-US Consolidation'; 2017 On November 14, 95% equity of Toshiba Image Solutions Corporation was formally transferred to Hisense, with a transaction amount of 12.9 billion yen, Hisense Electric will own a package of businesses including Toshiba's TV products, brands and operation services, and a 40-year global license of Toshiba TV. , Toshiba has begun to shift to social infrastructure business, focused on operating the elevator and other building-related business and power generation systems.
Another Japanese home appliance giant Sharp is due to over-arching debt was Hon Hai Group to 389 billion yen (equivalent to 3.5 billion US dollars) to acquire its 66% stake in the same time, Panasonic also quit the kitchen appliances, Gas stoves, embedded stoves, water heaters and other areas of the Chinese market, to give up the plasma TV business.
Lesson learned, what Chinese home appliance giants will face crisis
Japanese home appliances decline due to a variety of reasons, but bear the brunt of the rise because of the rise of China and South Korea, Japan's household electrical appliance enterprises in the home appliance industry profit so much better than before.
IBM sold Sunsets PC business to Lenovo in 2004. At that time, most believed that Lenovo had done a good business with 1.25 billion U.S. dollars and it seemed to completely defeat IBM. However, it was reminded that IBM was in the process of having Step by step strategic transformation because they know software companies are far more profitable than hardware and IT services companies: IBM software business in 2011 brought a total of 25 billion US dollars for the company revenue, accounting for 23% of total revenue in 2013 29.1 billion US dollars; IBM in 2015 said that software revenue accounted for about half of the company's total revenue.
Similarly, the Japanese home appliance business also understand this truth.Sony, for example, in 2010 the acquisition of iCyt Mission technology company in Illinois, Illinois, began to set foot in the flow cytometry business, to its many audio and video technology is highly anticipated Of the medical and biological fields.Hitachi is active in 2012 ended with a 56-year history of television manufacturing and LCD panel and hard disk business, vigorously develop health, as well as smart logistics and other new business, and soon recovered, then The market value of the equivalent of Sharp, Sony and Panasonic, the sum of the three companies to become a model of Japanese home appliance business transformation.
Under the strategy of diversification, Panasonic, Sony and other companies have already played down the label of "home appliances". Industrial restructuring and strategic upgrading are more conducive to enhancing the global competitiveness of veteran home appliance enterprises. They even worry that overseas consumers still regard their customers as " Appliance business'
In addition, the huge debt is also overwhelmed the Japanese home appliance business reasons.At the time before being acquired, Sharp debt even reached trillion yen, and finally unable to repay, was forced to communicate with the acquisition of Hon Hai Group matters.
Now, the rapid development of China's household electrical appliance enterprises, Hisense, Haier, the United States, Skyworth and other home appliance giants are also rising.And the fierce competition for the Chinese home appliance market has become the Red Sea, home appliance market profits are gradually reduced, and more Many mergers and acquisitions, many companies already have a significant number of debt if the future if you want to maintain the company's long-term operation, the Chinese home appliance companies now have to start thinking about how to face the challenges faced next.