Teacher Wu Xiaobo’s “Agitated Thirty Years” has a sequel called “Agitate for a Decade, Great for Water,” and the book says that for the past ten years, it was very appropriate to use the word “water, fish, and fish”.
The economic scale of rapid expansion and the escalating spending power are like a flood of wantonly flooding. It is anxiously searching for the borders of its borders. The parts that are violently impacted are equally anxious to bear the pressure and discomfort of development. There is bound to be a big fish among the big waters. During this decade, the body of Chinese companies has undergone tremendous changes.
In this decade, the number of Chinese companies in the world’s top 500 has increased from 35 to 115, including many household appliance companies we are familiar with. In the same decade, China’s household electrical appliances industry gradually moved from peak to weak, but around Filled with opportunities of various kinds, internet+, artificial intelligence, e-commerce bonus, new retail, etc.
If you say that a decade of reincarnation, then the next decade?
The desired market
In China's household appliances industry, kitchen and electric appliances are still quite good. Compared to the slow-growing or negative-growth categories in recent years, China Unicom's statistics show that the market size of the kitchen and electric appliance industry has been steadily rising from 2015 to 2017. Maintain an annual growth of more than 10%.
Taking the data for 2017 as an example, Zhong Yikang estimates that last year China's kitchen electricity market maintained a steady growth in traditional kitchen and electric appliances. Among them, the scale of retail sales of range hoods, gas stoves, and disinfection cabinets increased by 12.8%, 11.5%, and 8.8 respectively. %, The embedded kitchen power market reached 6.57 billion yuan, a year-on-year increase of 38.1%. The potential is huge. It can be said that the kitchen electric appliance market is still the fastest growing in the household appliance industry. Even Yikang predicts that the Chinese kitchen power market will exceed 1000 in 2018. Billion mark, this is undoubtedly the excitement and expectation of the industry and companies.
Taking only the hood in the kitchen appliance products as an example, the statistics show that the number of hoods in China in 2016 was 28 per 100 households, while the 100 households in Japan and South Korea reached 92 and 112 in the same period. There is still a long distance between theoretically average households, especially in the third and fourth tiers, and rural markets. Sales of hoods may even double.
China Kitchen Electric Opportunity
Water has a large natural fish, but it can't escape the law of big fish eating small fish. The market prospects are good, but the opportunity is only for those who are prepared.
Appliances are the real estate late market. Take the hood as an example. It is understood that 80% of the demand for hoods comes from renovations. It can be said that the demand for housing, decoration, etc. is directly related to the trend of the kitchen appliance market in the next 10 years.
However, due to many factors such as the adjustment of the national policy, the area for sale of commercial housing fell from a rate of 30% in 2011-2014 to a negative growth rate in 2016, and the area for sale of commercial housing fell by 25% at the end of 2017. The continuous decrease in the sales area is undoubtedly an impact on the kitchen electricity market. However, this does not mean that the kitchen electricity market has no chance.
It is reported that the urbanization rate in developed countries is about 70%, while there is still a gap between China and the relevant departments. It is estimated that until 2020, the urbanization rate in China can reach 60%, among which the urbanization rate of third- and fourth-tier cities is still higher. Large space for improvement. Taking 2018-2020 as an example, according to the plan, only 15 million sets of shantytowns can be reconstructed in these three years. If this data is extended to 10 years, urbanization will be Kitchen electricity industry brings considerable profits. In addition, the need to renovate and renovate existing homes can not be underestimated.
The report of the 19th CPC National Congress pointed out: Socialism with Chinese characteristics has entered a new era. The major contradictions in our country’s society have transformed into a conflict between the people’s ever-growing needs for a better life and unbalanced development. People’s demands for life are no longer required. Confined to full, warm, but also need to eat well, comfortable to wear. For example, people in addition to buying a washing machine will also consider using a dryer to increase comfort.
Specific emerging areas such as kitchen appliances, steamers, dishwashers, and ovens are becoming new breakthrough points. Statistics show that in 2017, the retail sales of dishwashers reached 4 billion yuan, with a year-on-year growth rate of 140.8%. The market size of embedded electric ovens reached 2.07 billion yuan, a year-on-year increase of 24.6%, much higher than the 12.7% increase in childhood hoods. The emerging kitchen electricity market is emerging as a new growth point in the development of kitchen appliances.
Shi Ting, general manager of Zhongkang Kitchen & Bath Department, pointed out that with the consumer market entering a new era, intelligence, health, high-end, and quality have become mainstream trends leading to consumption. In the past few years, it has been the kitchen electric market. Rapidly expanding myths. But for all business enterprises, the smart and healthy upgrade of the industry is both an opportunity and a challenge.
According to Cheng Feng, deputy general manager of Suning Tesco in Beijing, the consumer groups who currently buy kitchen electric appliances are characterized by the pursuit of quality of life, certain spending power, strong ability to accept new things, and strong social attributes. Therefore, in the next 10 years, Companies need to figure out what consumers want.
On the other hand, the development momentum of the kitchen and electric power industry will also be dedicated to the internal competition of enterprises. Each brand needs to rely on the advantages of R&D technology, product upgrading, etc., and a strong person's balance in the development of high-end and quality. First in 2018 The quarterly hood brand occupancy rate is an example. Boss Electronics and Fangtai have an absolute advantage of 26.4% and 23.1%, respectively, over other brands. Among them, the owner’s electrical share accounted for 18.7% and defeated Fang Tai.
Boss electrical opportunity
Strong Qiangqiang, April 10th Boss Electric released its 2017 financial report. According to the announcement, Boss Appliances achieved operating revenue of RMB 7.017 billion in 2017, which represented a year-on-year increase of 21.10%, and realized a net profit attributable to shareholders of listed companies of RMB 1.461 billion, a year-on-year increase. 21.08%. As the price of raw materials goes up and the market competition in the kitchen and electric appliance industry is becoming increasingly fierce, it is really eye-catching for the boss to maintain a 20% growth. According to data from Yikang, the owner of the electric appliance range hood in 2017, the gas stove, Disinfection cabinet, embedded steam oven, embedded microwave oven market share ranks first in the industry.
For the next 10 years, the kitchen appliance industry, the boss of the electrical appliances Wang Gang gave a good message, he said that based on the national background of promoting urbanization and consumption upgrades, kitchen electricity industry promising. But this does not mean that the owner of electrical When the wind came, He Yadong, the vice president of the electrical appliance company, once said that the company has always relied on technology and R&D to promote iterative upgrades of products to meet the needs of consumers. 'As an industry leader, we cannot wait for 'wind' to subvert our business. Yourself.
'Turn yourself upside down' is the biggest and best opportunity for your boss to give yourself.
As early as 10 years ago, the boss’s electrical appliances began to increase investment, promote smart manufacturing, integrate the two industries, and resist pressure on labor costs. At that time, it may have been 'not much' necessary but it was the best at the moment. Decision-making. Now, the boss's appliance has overthrew the previous model and created a series of new models and growth space for 'user demand-driven technology-driven'.
It is no longer confined to the focus of traditional kitchen electric stoves, but instead focuses on 'traditional + emerging categories', where smoke, stoves, cooking, roasting, steaming, micro, washing, net, and troughs are fully paved. Kai Ye, director of the boss's electrical appliance market, pointed out that their opportunity is to 'transmit the essence of Chinese cooking and seize cultural confidence'.
Because of this, Ye Danyi believes that all the kitchen and electric categories have the opportunity to be redefined. The reason is simple. Most of the Chinese kitchen electrical forms are the original appearance of Western imports. However, from the global market, different cooking There are also differences in kitchen appliances that are created by methods. For example, grilled turkeys in Europe and the United States require large ovens, while in Japan, baking saury is required. Small ovens are required. However, in China, because the market capacity of emerging products is not large, it has not yet been completely completed. Be localized. Therefore, in the emerging category, the boss appliance adopts a technology localization revamping strategy to win the market the biggest opportunity for him.
In addition to the redefinition of technological localization reforms, at the product level, the boss electric appliances continue to subvert their own subversion of the industry. 'Central range hood' is the boss's revolutionary electrical innovation, the best example of innovation industry. Its products have long been landing In Beijing's first use of the sixth floor of Aichengcheng Phase II, the owners dubbed it a 'sharing hood'. This hood is composed of a host, a terminal and a cloud back-office. It can be responsible for the fumes of the entire building. Residents do not need to install conventional hoods in the kitchen. They only need to connect the exhaust outlet to the public flue.
Minsheng Securities reported that it has been geared to shifting speeds and moving into the new normal. Boss Electronics will increase investment in product and technology innovation, especially the digital intelligent manufacturing base. The company's volume will be further expanded to bring about an increase in the base number. This also reflects the fact that the boss's electrical appliances have started to drive from the channel to product and technology-driven. Ye Danxuan said that 2014 was a completely separate line between the boss and the appliance. The company boldly invested in young people and resolutely cut out irrelevant products. 4. Focus again, this is the resolve of the boss's self-transformation.
On the technical level, Boss Electric established the California Institute for Innovation and the Shenzhen Institute of Innovation. The former mainly completes the task of collecting cutting-edge technologies, while the latter mainly conducts basic research and application research of new materials and new processes. Currently, the company's R&D personnel account for 16.75% of the total. , reached 662 people. In 2017, Boss Electric filed a total of 373 patent applications, 139 patents were obtained, and the number of applications and patents were the highest in the calendar year. Visible, the boss's electrical appliances, as Ye Danxuan expounded, from the past growth model Transition to a new growth model with 'user needs driving technology' as the core.
By 2016, there were 7 companies in the global home appliance industry with more than US$10 billion in revenues, including Whirlpool, Daikin Industries, Electrolux, and Bosch Home Appliances, as well as Gree Electric Appliances and Midea Group. Qingdao Haier. Ye Danjian frankly stated that Boss Appliance analyzed the market expansion of several leading companies in the industry, and concluded that product category diversification and regional diversification are the main paths for the long-term growth of a century enterprise.
Therefore, the owner's electrical appliance set a corporate growth curve for itself. In addition to the first 'smoke stove', the rest are the diversified offline market regions, diversified product categories, and regional diversification in the international market. Now, the boss There are already three brands, they are 'families' for low-end users, 'boss' for high-end users, and 'Dizawa' for luxury brands. In addition, there is a kitchen kitchen open platform - kitchen source, it sets the kitchen Culture, electrical appliances, custom derivatives, ingredients, kitchen utensils, kitchen software, cooking classes, etc.
The effectiveness of the layout of the owner's electrical appliances is also very significant. Dizewa specializes in ultra-high-end real estate renovation projects. At present, there are 45 Class A shops in the first and second tier cities. In the third and fourth tier cities, the owner’s appliances have accelerated through diversified layouts. The speed of channel sinking has only added more than 400 franchised stores each year from 2015 to 2017. Currently, it covers 60% of county- and municipal-level markets. The company's wholly-owned subsidiary has a fame. By the end of 2017, there were 87 first-tier dealers, and provincial capital cities had outlets. There are 184 prefecture-level cities with 800 outlets, county-level specialty stores, 2,364 outlets, 3,652 township and township outlets, and more than 3,000 rural village-to-villager rural contact stations. This has laid a solid foundation for the employer's electrical distribution in the third-tier and fourth-tier cities. Multi-brand, regional diversification strategy, the opportunity to bring the owner of the appliance is self-evident.
Some reports pointed out that in the past 618 big promotion, the Tmall 618 has attracted 70 million people to visit the mall on a single day, and the new retail has become a physical retail 'rejuvenation password'. The owner of electrical appliances in the store under the coverage, but also with the e-commerce cooperation Opened the offline online retail channel and used new marketing methods to create opportunities for themselves. For example, '618 Crazy Calories' and 'Little Yellow Man Touring' held in 2017 not only catered to the consumer groups pursuing quality life, but also Absorb many young fans.
Even in the ten-year cycle, there is no script to follow in the future. The kitchen and electrics industry is in the windy phase, but the opportunities are undoubtedly coexisting with challenges, and the storm is stronger. A company can do whatever it takes, no matter how far it goes. , is determined by the origin of that beginning, and to restore every step of development, it is the original force that determines the direction in which you break through. The better you do it, the original force will be polished to be stronger and sharper. As the owner electrician He Yadong said, as the leader of the industry can only upend themselves to the strong strong Hengqiang. This is both an opportunity for the owner of electrical appliances, but also the opportunities for the kitchen industry in the next decade.