China's kitchen appliance brand internationalization to get rid of OEM

Recently, the US Consumer Reports evaluated 89 types of microwave ovens, involving 25 mainstream brands, but there were no Chinese brands.

As we all know, China is the largest producer of microwave ovens. Midea, Galanz and other companies account for 70% of the global microwave oven production capacity. However, the survey data shows that the top 5 US microwave oven brands in 2016 and 2017 are GE, LG, and Decker. Samsung, cuisin art; The top five brands of microwave oven brands in the UK in 2016: Panasonic, Sharp, Samsung, Kenwood, Daewoo.

These brands have already lost their way in the Chinese market. Why are they in the developed countries' markets? Why is it difficult for overseas markets to trace the microwave oven brands in China?

From the perspective of capacity, Midea and Galanz are among the best in the microwave oven industry. However, at present, Chinese companies mainly export in the form of OEM or ODM, which is what the industry calls 'OEM production.' Senior Industrial Economic Observer In an interview with the reporter of China Trade News, Liang Zhenpeng believes that compared with Japan, Europe and the United States and other national brands, Chinese brands lack visibility in developed markets, which is the main reason for the difficulty of overseas brands in Chinese brands.

The actual situation is that LG microwave ovens have lost money in the Chinese market in 2006, and gradually withdraw from the Chinese market, exiting low-end machine sales. After that, LG has increased the launch of high-end machines in overseas markets, especially in North America, in the past three years, The average price of LG microwave ovens continues to increase, and its brand continues to upgrade. Industry data shows that in the field of high-end microwave ovens, Midea, Galanz's shipping price is generally lower than LG, especially in the large-capacity, hanging microwave ovens for the North American market. The gap is more obvious.

Insiders pointed out that consumers in developed countries such as Europe and the United States pay more attention to the appearance of microwave oven products, prefer simple and artistic products to match home decoration. Some high-end consumers will also consider the nutritional factors of products to ensure vitamins, trace elements and proteins. Without a greater degree of damage. If Chinese products want to obtain seats in the international market, competition by price alone can no longer meet the needs, and increasing the added value of products is the focus of microwave oven competition.

Liang Zhenpeng believes that with the escalation of domestic consumption, the gap between consumer demand in overseas markets and the Chinese market is getting smaller and smaller, and Chinese companies are fully capable of designing and manufacturing microwave oven products that meet the needs of high-end consumers.

'European and American consumers do not choose Chinese brands and their overall impression of Chinese brands.' Zhao Xinli, an associate professor at the Communication University of China, said in an interview with China Trade News that the popularity of microwave ovens in Western developed countries is as high as 80%-90. %, has long been a mature consumer goods. Consumers have a strong consumer inertia for this product, although Chinese products are very mature, but consumers are more inclined to choose the products of the established cognitive brand. Europe, the United States and South Korea brand before the Chinese brand Force, have obvious advantages.

Zhao Xinli believes that the international status of Chinese brands is not commensurate with the quality of Chinese products and China's economic strength. For example, he said that there were 115 Chinese companies ranked in the Fortune 500 in 2017, but only 37 Chinese brands ranked in the world's top 500 brands in the same year. , the gap is wide.

'Chinese brands are at a critical stage of the rise, and national brands such as Japan and South Korea have also experienced this process.' Zhao Xinli said that at present, the core issue facing Chinese enterprises is how to properly address the short-term survival needs of OEMs and the long-term development of their own brands. Relationship. China's microwave oven brand must cross the OEM stage and move towards the branding operation stage.

The reporter learned that in recent years, China's microwave oven companies are accelerating their branding strategy. Taking Galanz as an example, in the new round of European market expansion, the company is working hard to get rid of the past OEM, scale advantage to win the pattern. At the same time as home appliance companies do high-level OEMs, Galanz is active in the world-class exhibitions. Every year, it participates in influential home appliance exhibitions, electronic exhibitions around the world, and actively engages with multinational retail groups, enabling products to directly enter the global market of multinational retail groups. Purchasing network.

In recent years, Galanz has accelerated the construction of European local warehousing and logistics distribution system, with high-end products, channel construction, and localized management as the core, pushing the market of technology, brand, and global sales channels to 'three-doors'. 'Product and scale' to the 'brand and innovation' of the 'out of sea' new channel.

In addition to Galanz, Haier, Midea and other kitchen appliances companies are also accelerating the promotion of brand internationalization and creating a high-end brand image. 'Improving brand premium ability is to enhance the brand's profit margin.' Liang Zhenpeng said that it will eventually switch to independent brand exports. This is the ideal state of Chinese enterprises.

'There is no shortcut to brand building'. Zhao Xinli said that after the company's product design, quality, function and other aspects, it should draw a 'symbolic element' that is easy to spread, and consistently promote it and promote it in the memory of consumers. A long-lasting good impression.

Zhao Xinli also reminded that commodity brands have a positive correlation with national brands. The improvement of China's national image is of great benefit to Chinese brands going abroad. In the future, we hope to promote the image of the country and choose more representative Chinese brands. Dance together.

2016 GoodChinaBrand | ICP: 12011751 | China Exports