All transitional products will eventually escape the outcome that was eliminated by the historical floods. The e-commerce exclusive supply machine that appeared in the appliance market in recent years is not a benign product form of market competition, but a transitional product in the transformation of home appliance retail channels. Space is being accelerated by the integration of online and offline channels.
The origin of e-commerce suppliers is mainly due to the emergence of e-commerce showrooms such as Jingdong and Ali Tmall in the home appliance industry. In the early stage of e-commerce development, home appliance companies must not only participate in competition, but also avoid online shopping and online purchase. The benefits of the two channels in the next physical store are mutually beneficial. The function of the offline kingpin product is reduced, and the cost is reduced to the online e-commerce platform. The low-priced special-purpose machine eventually becomes the differentiated channel layout of the home appliance company, and meets The main means by which the e-commerce platform grabs consumers.
Of course, before the emergence of e-commerce exclusive supply machines, there were also store special supply machines. This is also the era, home appliance hypermarkets represented by GOME and Suning have risen strongly in the channel, replacing traditional home appliance agents, and dealers have become After the protagonist, home appliance companies competed for channel competition, and thus launched a dedicated store for the machine.
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When e-commerce is emerging as an emerging channel, for home appliance manufacturers and retail channels, the exclusive supply machine itself is a separate line between online and offline, and home appliance manufacturers adopt the 'online low-cost redemption scale, pushing down the high-end line to make profits'. Strategy, at a certain stage can weaken the vicious competition in the two markets of household appliances retail.
However, in the last three years, the unification era of traditional retail channels dominated by Suning and Gome entered the end, new retail giants such as JD.com and Alibaba Group have emerged strongly, fragmented, and personalized competition has broken through the market structure that has persisted for more than a decade. This direct The result is that home appliance brands, channel distributors, and retailers are all facing a disruptive reengineering. The circulation of products and efficiency innovations in turn have forced household appliances companies to reconfigure the manufacturing system, product system, and resource layout.
In this environment, online and offline channel competition games have not been reduced because of the emergence of special-purpose machines. Instead, they have become the 'gunpowder' that has further intensified the contradictions and accelerated the arrival of retail changes. The report shows that in 2017, China's B2C home network purchase The market size reached 490.6 billion yuan, a year-on-year increase of 27.6%. The sales volume of air conditioners, refrigerators, washing machines, and color TVs increased by more than 50%.
Especially since 2017, Jingdong has surpassed Suning, the traditional channel, to become China’s largest home appliance retailer. Ali’s courts have resisted the ceremony. At the same time, Midea, Haier, TCL, Skyworth, Oaks and other home appliance brands have e-commerce channels. , 618, Double 11, Double 12 is not just a consumer spree. It is also a marriage between a brand owner and a new retailer, sharing a feast.
This has sent an important signal to the vast majority of home appliance manufacturers. The e-commerce business is not yesterday's 'Birds' and it has become the 'honor' of today's style. The supporting role of the market has become a leading role, and the historic role of e-commerce suppliers It is also changing. If the thinking of home appliance companies still persists, the low-cost, low-quality e-commerce market is used to separate online and offline e-commerce as an auxiliary channel. Then it has been left behind by the times. Exclusively for the machine model to solve the channel problem, not only is it lost now but also the future.
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In recent years, e-commerce special-purpose machines have gradually lost the temptation to users in the home appliance market. This is not only the inevitable trend and result of the new retail revolution, but also the end of its traditional historical role in the market, or the choice of market and consumers. result.
Since 2017, the home appliance industry has experienced excessively low price competition and the means of scale competition has failed. The premise of the rise of new retail is the integration of online and offline channels, which improves the efficiency of product circulation, product quality, and high-end consumption. From this perspective The product structure of the home-network procurement market is toward high-end, brand-name transfer, and the exclusive-supply machine has deviated from the interests of users. The ultimate elimination of the era is that the user's consumption choice is more rational, individual, and diverse.
In the face of JD.com, Ali’s aggressive offensive momentum, Suning, Gome and other home appliance channels are also seeking to fight back the 'traditional' label through e-commercialization, but the expansion of new retail has surpassed the role of narrow channel providers and swallowed the line. With market share, offline tents, smart logistics, service systems and other tentacles are extending the value chain, sinking, deepening the 3rd and 4th markets, and accelerating access to the last mile. New retail is no longer simply an e-commerce channel. The new value orientation tends to be an integrated platform of service providers or retailers, with the intention of taking over the home appliance market.
In response to such drastic changes, household appliance companies can only take initiative to adjust their competitive initiative, jump out of old routines, adopt new models, and implement new practices such as new product omnichannel launches, online and offline products with the same price, etc., to achieve business operations from the company. Strategically fill loopholes in the new retail product strategy, find new positioning of its own brand and new product value in the torrent of retail changes, and maximize the efficiency and effectiveness of omni-channel integrated product circulation.
Next, if home appliance companies still cling to the business thinking of proprietary machines, they also want to solve the online and offline conflicts of interest and conflicts through channel customization, instead of providing differentiated product innovations to meet customer needs. Then all After all, the hard work is 'headache treatment, foot massage', to the era of great times, the opposite of big trends!