Exclusive: Merger of the two major divisions of kitchen appliances and water heaters

The company will re-adjust the kitchen appliances division and the water heater division, and will integrate the two divisions into one division.

The China State Grid Reporter was informed exclusively that the U.S. executive committee had already decided to approve the production, research, supply, and distribution of the hood, stove, dishwasher, and disinfection cabinet as part of the Water Heater Division, establishing a beautiful kitchen and hot water. Business Unit, merged the original two separate divisions of kitchen and water heaters.

At the same time, Xu Yufeng, general manager of the water heater business division, appointed the general manager of the new business unit.

'In order to adapt to the new scene of marketing', for the purpose of adjustment, the above-mentioned person of the United States expressed this.

However, according to the China National Grid Reporter, the integration of the two major business divisions of the United States may be related to the underlying causes of market competition.

According to the rankings of the retail sales of Ove Cloud under the Midea Group's 2017 annual report, among the top ten home appliance categories in the United States, the first in the industry is electric cookers, electric pressure cookers and induction cookers. Air conditioners, washing machines, microwaves and clean water, and electric and heat and stoves, hoods, ranked third and fourth in the industry.

Currently, in the various business divisions of Midea Group, one intensive job is to increase the proportion of high-end products and raise the average price of the products. The reporter of the China State Grid further learns that Midea’s performance in improving the average price is the refrigerator and washing machine, and the refrigerator in 2017 The average unit price increased by 30%, and the average unit price increased by 25%. It was the largest year for refrigerators in the past decade. The average unit price of electric water heaters in the United States also exceeded Haier, and the gas water heaters from zero were only second to Wanhe, and the prices rose positively.

In the field of kitchen appliances, Midea has a leading scale, but the average price of the product is not as good as its competitors. Technically, it has surpassed its major rivals, but it still takes time from technology leadership to product leadership to market leadership.

This time, several major categories of Midea’s kitchen appliances division were incorporated into the water heater business unit. Ultimately, Midea wanted to improve the competitiveness of kitchen appliances through this adjustment, and increase the overall competitiveness of the US kitchen and hot water in the kitchen and toilet market.

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