Generally speaking, May 1st is a timeline for businesses to push for competition. The home appliance industry will also join the competition in this market. However, Nail Technology has noticed that from this year's perspective, many home appliance categories are on the 51st market. The performance is very sluggish, and the brand's willingness to promote is not strong. Once the golden promotion has become a trend, what are the reasons?
Taking kitchen appliances as an example, let's take a look at the data. Nail Technology noticed that the kitchen and electric market fell into a rare volume in the first quarter of 2018. According to Ove Cloud's omni-channel push data, 2018 In the first quarter, the retail sales volume of the kitchen appliance market was 12.8 billion yuan, down 6.1% year-on-year; retail sales were 13.669 million units, down 3.3% year-on-year, and the overall amount fell.
The offline market is even more difficult. In the 1-12 weeks of this year, the offline retail value of the range hoods, gas stoves, and disinfection cabinets in traditional kitchen appliances was -16.7%, -7.5%, and -11.9%, respectively.
In the depressed market environment, the use of 51 files to raise sales should be a normal strategy for businesses. But the reality is that the kitchen electricity market remains depressed during May 1st.
From the data monitored by Aowei, although the online market has increased, it has seen a significant decline from offline, and the overall market is still in a downward trend. According to AVC data, the overall category of kitchen appliances (smoking stoves) The market size was 5.25 billion yuan, a year-on-year decrease of 8.7%.
Why is there still no obvious improvement during the May 1st period in the context of the declining overall market in the first quarter? According to the analysis of nail technology, there are several reasons:
First, market demand has entered a relatively weak period as a whole, and the popular incremental market dividend has gradually disappeared. Especially under the strict national real estate control policy, real estate sales have continued to slump, which has had a negative impact on the kitchen electricity market. It is worth noting that From the perspective of monitoring data, the sales proportion of online and offline single products has increased slightly compared to the same period in 2017, which means that the kitchen and electric power industry is gradually shifting from the incremental market to the stock market.
Second, under the premise of maintaining sales volume, mainstream brands dare not raise prices, resulting in an overall decline in sales. From the perspective of Aowei’s data, mainstream brands also focus on the mid-end output price segment in product launch, or maintain stable prices. There is no price fluctuation in the overall market.
The third is the accumulation of power for the 618. It does not want to overdraw the market in advance. In 618, the promotion of the China University of Technology has received more and more attention from manufacturers in recent years. Channel and brand companies have invested a lot of resources. If relevant resources are released in advance in May, it is obviously not conducive to years. China University of Technology promotes the completion of goals. Therefore, the strategic abandonment of May Day will be the choice of many brands.
In summary, the market will gradually increase its inventory, and the willingness to raise prices under the pressure of mainstream brands will weaken. This will promote the storage capacity of the mid-year and large-scale companies, resulting in a large boost to the market size of the May 1st market, and accumulating from the golden period. It is not hard to understand.
Ding Shaojian, the founder of Naru Technology, believes that in the first half of the year, there are many big promotion nodes, from Yuanchun to 418, to May 1st and 618, and the interval between them is very short. Not only the overall market demand is limited, but also the brand and The promotion resources of the merchants are also limited, leading to some traditional big promotion nodes gradually declining. How to more rationally carry out the layout of the promotion nodes throughout the year is a problem that brands and distributors need to face together.