The development of the global home appliance industry has gone through three phases: It was dominated by Europe and the United States before 1980, Japan dominated before 2000, and Korea dominated before 2015. Next, who is the leading global household appliance? The answer is: China On this day, it will arrive by 2023 at the latest.
Careful people may have discovered that in the past few years, Chinese people have increasingly considered foreign brands when purchasing household electrical appliances, from air conditioners, color TVs, refrigerators, washing machines, range hoods, cooking appliances, and mobile phones. The more you look at local brands, this is a significant change that has happened quietly.
People can not help but ask: When will Chinese household appliances dominate the global market?
Maybe not far away.
1. Changes have taken place: Following the quiet withdrawal of Japanese brands from the Chinese market, Korean brands have also shown signs of decline.
Eight years ago, Japanese-funded appliances quietly began to withdraw from the Chinese market; today, we have seen less and less Japanese-owned household appliances.
Suddenly, this scene began to occur on Korean-owned home appliance brands. The Korean home appliance brand, which was once on the Chinese market, showed a slight decline in the Chinese market.
Now, the first people to consider when purchasing color TVs may be Skyworth, Hisense, TCL. The first brands to consider when purchasing air conditioners may be Gree, Midea, Haier, and the first brands to consider when purchasing refrigerators may be Haier, Midea, Buy. The first brand to consider during the hood may be the boss, Fang Tai, Vantage, the first brand to consider when purchasing a mobile phone may be Huawei, Xiaomi, OPPO...
When people bought high-end electrical products eight years ago, they first made choices between Sony, Samsung, Siemens, and Daikin; but today, the high-end consumer groups in China are considering local brands when buying electrical products. This is a The huge and profound changes show that 'Made in China' is no longer synonymous with 'low-end products' in consumers' minds.
In my opinion, this is a signal that China’s home appliance is about to become a global leader in home appliances. I am confident that in the next 3-5 years, even consumers in developed countries will purchase electrical and consumer electronics products. Consider Chinese brands together with traditional mainstream brands such as Japan, Korea, Europe and the United States; in the past, they only remembered Chinese brands when they purchased cheap electrical products.
Changes have taken place quietly. This is a process that spreads from the Chinese market to the global market.
For a long time, Chinese home appliances have been 'quiet and cheap', but the international community does not accept this statement. They are more willing to equate 'Made in China' with 'cheap, low-quality products'.
But today, in some European markets such as Germany and Italy, Haier’s home appliance products are already in the same brand category as Siemens and Bosch. The competition is also in the high-end market.
Even the Casa di brand owned by Haier is even considered a masterpiece of luxury appliances.
Second, the "China of the Times" of global appliances will arrive by 2023 at the latest.
The development of global home appliances to today has roughly gone through three eras: the era led by Europe and the United States before 1980, the era dominated by Japan before 2000, and the era led by South Korea before 2015.
In the coming era of the next era, the dominant will become China.
This is an undeniable conclusion.
In fact, the process of the rise of Chinese home appliances in the world is also a process in which China has transformed from a developing country to a developed country.
I have an interesting finding: The process of the rise of a home appliance industry in a country is often a process in which the country changes from a developing country to a developed country.
What is even more interesting is that once this country becomes a developed country, the home appliance industry in this country will be overtaken by another country.
The process of Japan’s home appliance surpassing Europe and the United States to dominate home appliances is precisely the process by which Japan grows into a developed country. The process of Korean home appliances surpassing Japanese home appliances is the process by which South Korea grows into a developed country. Today, Chinese home appliances are on the eve of surpassing Korean and Japanese household appliances. This process is exactly the process that China has taken from developing countries to developed countries.
It is because of this that the home appliance industry is often referred to as 'developing game'.
3. To establish the global dominance of Chinese home appliances, we must start by improving the image of 'Made in China'.
In recent years, China’s home appliances have made significant progress in two areas.
First, global brand power: For a long time, weak brand power was one of the two shortest household appliances in China. With brand awareness continuing to awaken and supplemented by product strength, China’s home appliances are gradually escaping from 'low-end' and 'cheap'. Traditional image. In this regard, the most representative enterprise is Haier.
The latest news is that the reference news has passed through 15 foreign media such as Reuters, Wall Street Journal, AFP etc. from March 2017 to March 2018 on 'media level', 'number of reports', 'media attitude', 'brand evaluation' 'Some other dimensions of statistics, calculate the Chinese brand overseas TOP10 ranking. Among them, Haier home potential ranks third in the most influential Chinese brands.
Second, product competitiveness: to enhance the competitiveness of products and the Chinese household electrical appliance enterprises unprecedented attention on innovation, R & D investment more and more relevant in this regard, the company is more representative of the United States.
In 2017, Midea Group's R&D investment exceeded RMB 8.5 billion, which is an increase of 40%+ from RMB 6 billion in 2016. It is expected to increase to RMB 10 billion in 2018. The greater the R&D investment, the stronger the competitiveness of the company's products. Huawei is a typical example.
In fact, the success of Chinese companies Huawei's great inspiration, household electrical appliance enterprises generally recognized that, in order to establish a globally competitive, invested heavily in research and development is not around the past the threshold.
In this regard, I particularly want to say a few more words. In my opinion, the most gratifying change in the Chinese home appliance industry in recent years is not that high-end consumers have begun to purchase products of local brands, but rather forward-looking home appliance companies like the United States. Haier, Gree, etc., earnestly attach importance to R&D and are willing to invest heavily in R&D. For a long period of time in the past, Chinese home appliance companies are more willing to spend money on advertising and marketing, and today they have changed. From a global perspective, the real The world’s leading technology companies are all companies that value R&D and innovation, from Apple, Samsung to Google, Tesla, and both.
International companies generally adhere to a basic understanding, that is: the market comes from the product, the product comes from the technology, and the technology comes from the research and development. The emphasis on research and development is the emphasis on the product, which is a fundamental guarantee for the enterprise to win the market.
Therefore, if someone still dreams of attracting consumers with ultra-low prices, it is already wrong from the perspective of the starting point. Over the past few decades, Chinese companies have loved price wars. Has our status in the global market improved? No. Instead, when When we abandon the price war mentality and move toward pushing up sales, we suddenly realize that the status of China’s home appliances has been elevated globally. This is dialectics. Cheap prices are not respected and high prices can win the mainstream market.
Still taking the three major brands of Chinese home appliances as an example, in recent years, the three companies have promoted a dual brand and product upgrade strategy. Not only have their profitability significantly increased, their revenue scale has also grown, and there have been no 'high price impacts' that some people worry about. Sales' situation occurs.
In 2017, Haier Group achieved revenue of 241.9 billion yuan, and achieved a total of 30 billion yuan in profits and taxes; Midea Group also realized revenue of 241.9 billion yuan, net profit of 17.3 billion yuan attributable to the mother. According to Dong Mingzhu, Gree Electric Appliance Co., Ltd. The revenue will soar to 150 billion yuan, and the net profit is expected to soar to 20 billion yuan.
The continued improvement in revenue and profitability is the result of the continuous improvement of product strength and brand power of these companies.
For a long time, Chinese home appliance companies have consciously and unconsciously placed themselves in the position of an international brand 'follower'; today, however, they consciously or unconsciously place themselves in the 'leader' position.
This is why I dare to assert that China’s home appliances will lead the global market in the next five years.
Fourth, if one day Chinese home appliances are overtaken by countries such as India, please don't be disappointed, not to be frustrated.
When Japan’s home appliance’s dominance in the global market was replaced by South Korea around 2005, the entire Japanese society performed quite calmly, and even a little surprised.
In this scene, when American home appliances were surpassed by Japan in the 1980s, the American nationals were equally similar.
Today, the global dominance of Korean household appliances has been challenged by Chinese companies. We also did not see Koreans yelling.
In fact, when Korean home appliances surpass Japan, Japanese home appliance companies have begun their journey of transformation, home appliances are no longer their main business, but they have established their new advantages in new energy batteries, nuclear power, medical equipment and other fields. For example, Panasonic has become the world's largest battery supplier for Tesla Motors.
Therefore, the decline in the era of household appliances in the United States, Japan, and Korea is not entirely a matter of 'not as good as people', but is a component with a very active transformation. They are developed countries and have little interest in playing games in developing countries.
It should be noted that although many American and Japanese companies have withdrawn from the home appliance industry, the global digital technology and display technology patents are still in their hands. Therefore, the exit of the United States and Japan from the home appliance sector has largely been withdrawn. Manufacturing and sales, rather than withdrawing from R&D and standards.
Therefore, if one day the advantages of Chinese home appliances are replaced by others, we should not be overwhelmed. On the contrary, we should be happy. This indicates that China has completely ranked among the developed countries.
At present, household appliances business in the United States, Haier Group's revenue ratio continued to decline. Still taking the United States and the Group as an example, with the KUKA Robotics business and Andre logistics business continued strength, in 2017, the United States Group has been from a pure The household electrical appliance enterprises have gradually transformed into a technology group focusing on home appliances. The proportion of home appliance business revenue has been reduced to 86%, and will not fall further below 70% in the next three years. This is very likely.
We often say that Samsung is a household appliance company. In fact, Samsung Group accounts for more than 500 billion US dollars in revenue, and home electronics and consumer electronics account for less than half of revenue.
On the whole, China’s home appliances still have a gap with the international big brands in terms of two core competitiveness factors—brand and technology. The next five years will be the time for us to make up for the short board again. Once the brand and technology are both long enough , China's home appliance tyrants will come all over the world.