In the first quarter of 2018, the development of the kitchen appliance industry was hindered for three reasons: 1. The lack of new demand for real estate purchase restrictions; 2. The Spring Festival dislocation delayed the rhythm of home improvement; 3. The base number was higher in the same period of last year (lag in the real estate market in 2016). According to AVC's total sales data, the retail sales of kitchen electricity (Yanzao Xiao) industry was 12.8 billion, a year-on-year decline of 6%. This is the first time in the kitchen and electric industry in the past few years that it has encountered cold.
If the industry is cold, testing the brand's overall strength will become more obvious. The price war will be unsustainable, and the value war will be the sharp weapon in the winning market. Brands, products, and channels will be the three major factors that determine whether a brand is successful in adversity! The two major kitchen and electric brands (Boss, Vantage) just released have seen a good growth rate in the first quarter of fiscal year 2018. They are competitive brands in the face of adversity in the industry. Comparing with earnings figures, Vantage's performance has been growing at an annual rate. In the past, our industry has always been: The development of the industry has been led by Fang Fang and Huo Xiong. With the sharp changes of Vantage, we may want to change: Three pillars, a total of kitchen economy!
From the first quarter of AVC's monitoring data, the brand pattern of this year began to differentiate and evolve. The boss and Fangtai are still in a leading position, but Vantage has achieved outstanding performance and is in the field of volume and price increase, and its share has further expanded. The increase in unit price outperformed the broader market, which could be said to increase unit prices and promote scale through structural improvements. According to AVC offline monitoring data, the retail sales of offline range hood products in the first quarter increased by 1.1%. The number of mainstream brands, while the average retail price increased by 9.6% year-on-year, significantly leading the industry average.
The expansion of Vantage shares has started since 2015. Through the monitoring data of AVC in recent years, the share of Vantage has been increasing for three consecutive years, and the average price has increased even more significantly. It has gradually entered the high-end camp!
The record of Vantage in recent years can be summarized as the following points, hoping to bring some ideas and experience to the peers!
1. The brand building has always taken the fashion route! In the past few years, Vantage upgraded its brand image and continued to cater to the preferences of the new generation of major consumer groups (after the 90s). Their favorite elements have continued to bloom in the upgrade of Vantage brands. The brand is doing well. The user's traffic is high, so the attention of Vantage brand users has increased year by year!
2. Product structure adjustment is decisive! In the past, Vantage’s gas stoves have been the industry leader. In recent years, Vantage hoods have continuously established product labels through intelligent layout in a highly competitive environment, and at the same time built large suction hoods to gradually create their own positions. Consumers choose the core selling point of the product! Good product planning will allow users to increase their desire to purchase. We call it conversion rate!
3. The channel layout is reasonable and efficient! At present, the development of kitchen appliances is hindered by macro factors. Development is hindered, but there are two fast-growing channels: e-commerce, three or four levels. First of all, Vantage's operations in e-commerce are worthy of specialization. The layout of high-end packages is reasonable, and at the same time, the opportunities for important nodes are properly grasped. Second, in the rapid development of Grades 3 and 4, Vantage flagship stores are rapidly expanding and the layout continues to snatch users. At the same time, in the first and second-line markets, large-scale chains, department stores and other channels promote high-end establishments. Brand banner, At the same time, the customer unit price is improved through the appearance and display of high-end products! The channel layout is clear and clear, and the increment is clear!
4. The operating model has been transformed rapidly! Most of the sales models of kitchen appliances belong to the distribution agency model. We mainly focus on the pressing and wholesale operations. The kitchen and electric appliances industry is now affected by property purchase restrictions, and the growth of retail sales volume has gradually slowed down. It does not work, and the repurchasing of old-for-new upgrades is the best sales model for this year. Vantage through the big data analysis and the rapid establishment of the retail team is actively transforming from distribution to retail, avoiding inventory risks in a timely manner, and reasonably stocking.
Although the traditional kitchen appliances were cold in the beginning of the year, the emerging kitchen appliances (embedded, dishwashers, etc.) were quickly popularized and driven. AVC predicted that the chef electric industry is expected to gradually break 100 billion in 2018. The kitchen economy has gradually become the focus of the development of the home appliance industry. More and more comprehensive brands have begun to force kitchen power, and the characteristics of the kitchen and electric industry are as follows: There are many categories, large volumes, high profits, miscellaneous brands, and rapid development! With competition With continuous upgrading, no brand building, no product planning, narrow channel access companies will gradually be eliminated, and the brand pattern of future kitchen appliances will gradually become clear!