Traveling on the bus to Shunde, Guangdong, I listened a little, and the ears were full of talking about the home appliances, parts, industries, industries, etc. The driver said that more than 70% of the passengers in a car will deal with the home appliance industry. It is a veritable 'home appliance capital'. Home appliances constitute the focus of people's lives, forming a strange 'local characteristics', portraying the annual rings of Chinese home appliances' ups and downs. In the occasional catch of front passengers, there is a sigh. In 2018, the kitchen appliance industry should be 'changing the sky'.
The kitchen appliance industry stepped into the speed increase shift zone
In the first half of 2018, the first negative growth in the kitchen appliance industry released a signal. 'The head of Galanz's kitchen electric business, Wang Xinbiao, pre-judgment, 'From now on, the kitchen electricity market will enter the growth rate conversion zone, and the industry will bid farewell to the high growth era. 2-3 years, down, adjustment will become the main tone of development. '
Wang Xinbiao believes that although the transition from the growth to the decline in the kitchen electricity market is sudden, it is not without warning. First, the last five years are the key period for China's rapid economic development and consumption upgrading, and the kitchen as an area for improving family quality life, At the same time, from 2015 to the first quarter of 2017, the domestic real estate transaction area reached a high peak, and the average annual compound growth rate of existing home transaction area is about 14%-16%. The hot sale of existing home sales and the upgrade of quality life bring together In the high growth era of the kitchen electricity market. Since March 2017, China has experienced multiple rounds of real estate regulation. In 2017, the total transaction area of the property fell by 16%, and the first-tier cities fell by 37%. The overall contribution rate of electricity to the industry is about 65: 35. With the decrease of new users, the industry has experienced a significant decline in the short term.
Wang Xinbiao also stressed that the real estate control policy has a period of introduction and digestion, and in 2017, it can be regarded as the first year of real estate regulation and control, and the next few years should be the period of policy. Therefore, existing home sales will be affected for a period of time. Inhibition, which in turn affects the new market for kitchen appliances.
The news from other kitchen and electric companies also basically recognized the above prejudgment. However, Cai Xiaojun, deputy general manager of Vantage Marketing added that the current round of real estate regulation mainly affects the primary and secondary markets, while the increments of the third and fourth grade markets are expanding. The exploration in this field is not deep enough. 'At present, everyone's sales focus has begun to tilt towards the third- and fourth-tier markets, which largely offset the decline of the first- and second-tier markets. As a low-profile, high-use product, the kitchen The nature of electricity determines that there will be no blowouts or cliffs in the industry, but there will be hot-spot rotations. From this, we believe that in the next 2-3 years, the kitchen appliance industry will maintain a small increase in 'steady state' - That is, it cannot reproduce the high growth of the past, nor will it sustain negative growth.
Internal shuffling is about to begin
According to Lu Zhengrong, deputy general manager of the Ascotton Group, around 2014, Ashlandon began to intervene in the kitchen appliance business. It has launched two brands, Paide and Buick, and expanded the kitchen and water heater production base in the past two years. However, they are clearly optimistic about the growth of the market, and the production line is still in an unsaturated state.
In the past, the number of kitchen appliances has increased rapidly. According to Cai Xiaojun, there are currently more than 400 brands in the industry. 'In fact, many companies treat kitchen appliances as a VC investment,' said Wang Xinbiao. 'In a high-growth environment, everyone can eat meat and soup; once growth slows down or even falls, it will affect many brand decisions. 'In his opinion, 'this will be a benign adjustment, it will also be The game between the two forces--the trend of the follow-up brand and the continuous investment of the brand. In the future, what can be left is the professional kitchen electric appliance enterprise, willing to invest human and material resources for this industry, to do specialized product development.
Cai Xiaojun mentioned that the current strong interest in the kitchen appliance industry comes from the high premium of this category. 'Cooking appliances are high premium, high gross margin products, but high gross profit may not be able to translate into high profits. Kitchen appliances pay attention to user experience High gross profit corresponds to high cost amortization. On the one hand, brands need to create a comfortable shopping environment for consumers, such as scene-based homes; on the other hand, due to their high usage rate and low attention, brands should pay attention to services. Experience, marketing experience, etc. 'He believes that the gross profit of kitchen appliances is the bottom line to ensure the operation of the company. 'If Maori can't keep it, the survival of the company will be difficult.' In 2017, Vantage invested about 320 million yuan in specialty stores and The flagship store has been upgraded and upgraded. The newly expanded store has an area of 30,000 cubic meters, and the newly expanded flagship store covers an area of 70,000 cubic meters to attract and please consumers.
'Incoming enterprises see gross profit, and the exiting enterprises see the cost. This is the current survival mode of the kitchen electric appliance brand. ' Cai Xiaojun said, 'With the arrival of the kitchen electricity adjustment period, the brand concentration will definitely become concentrated, the future Small brands with a size below 500 million yuan may be washed away. This figure accounts for 7-8 percent of the total number of kitchen appliances.
The third and fourth-tier markets are transformed into new engines for growth
When the first and second markets are worried about the reduction of urban tower cranes, the third and fourth grade markets have gained more attention as 'potential stocks'.
As a new recruit in the kitchen power industry, Ashlandon bet on the third and fourth grades and the rural market, with the doorstep of the 'burner hood' and 'big range hood' as the door to the consumer. 2018 In the first half of the year, sales of Ashden's smoked stoves increased by 17%, and the 'three big' industry showed a negative growth overall. Lu Zhengrong said, 'China's kitchen revolution' is being carried out in the urban and rural primary markets. Encourage residents to create a clean, clean kitchen environment. In Guangxi Baise, farmers' kitchen renovation can apply for subsidies; our 'big range hood' is very popular in the northeastern countryside, installed on the 'big pot stove' of Taiwan, strong smoking There are also three sets of smoke stoves that we have launched, which are popular in the northeast and southwest markets. The rural single-family kitchens use hoods, which were rare in the past, but in recent years, this behavior has become a common practice. Compared with the urban market, the current research on urban and rural areas is not deep enough, so many companies' judgments on this market remain in the past.
Looking back on China's 40 years of reform and opening up, the economic dividend has mainly benefited the primary and secondary markets from the beginning, and has now extended to the third and fourth grades and the rural market. Wang Xinbiao believes that 'whether it is lifestyle or social, the third and fourth grade markets are gradually becoming more and more Convergence in the first and second tier markets, which naturally includes the return of family happiness. 'From 2018, Galanz began to focus on the third and fourth tier markets, and recently opened the first scene home appliance in the traditional third- and fourth-line representative city of Shaoyang, Hunan. Experience store. 'In the image transformation of SI, we spent nearly one million yuan. It took 4 months to open the first experimental store in Shaoyang, and moved the ideal scene of the kitchen and living room to the experience store instead of The traditional cold ice product display, which will attract consumers into the store, let them feel 'this is the kitchen I want'. At the same time, there are bars, ingredients, consumers can do the live experience. We also work with local home improvement companies Cooperation, on-site design of home decoration for consumers, one-stop packaging from the living room to the kitchen. This experience store is 110 square meters, which is suitable for most of the family area of the third- and fourth-tier cities; It is also an attempt to transform the store from selling products to user experience. In the future, we will replicate this model in more third- and fourth-tier markets. 'Wang Xinbiao added, 'This experience model is mostly in the first and second line. Only in the flagship store can you see it. But now, the segmentation of the level market is being broken, and consumers in the third and fourth-tier markets are also pursuing the products and experience of 'big up'.
'In fact, the disposable income of consumers in the third and fourth-tier markets is not weak. In the trial operation, we found that the average customer price of Galanz products is higher than that of first-line stores. With the country's population to third- and fourth-tier cities. Drainage, their pursuit of quality of life and happiness will definitely improve in the future.'
The color of the smoke stove favorite in the third and fourth grade markets
Cai Xiaojun revealed, 'For the average acceptable price segment of kitchen appliances in all levels of the market, the local unit area price can be used as the standard. For example, the house price is 4,000 yuan/m2, and the kitchen and electricity supporting budget is generally in the price range of 4000-5000; The unit price is 8,000 yuan / m2, then the budget is 8,000 yuan - 10,000 yuan. In the development of the third and fourth grade market, the price of products acceptable to residents is much higher than expected.
He mentioned that Vantage's current market strategy is to make two-way penetration, Vantage up, and grab the first- and second-tier market share; Black & Decker, to expand the competitiveness of the third and fourth-tier markets. 'The volume of the third- and fourth-tier markets has become the kitchen appliance industry. Important support for development. However, the brand awareness in this market is weak, and the user's choice of products is appearance > quality > brand > price, competition pressure is relatively large. In the future, we will strengthen the image management of the third- and fourth-tier stores. At the same time, enhance the advertising volume of the third- and fourth-tier markets, and enhance the brand awareness of users who do not have clear orientation. At present, there are no more than 20 kitchen appliances brands in the primary market; There are more than 300 brands in the market. Here, we have to release a certain voice.
New categories set off a banner for profit growth
In addition to the new volume brought by the third- and fourth-tier markets, another driving force behind the growth of the kitchen appliance industry is the increase in new categories.
Cai Xiaojun said that at present, Vantage has added a variety of layouts including embedded micro-boiled, dishwasher, cabinets, kitchen electric, water purification, etc. to build a new 'big kitchen' scene. In 2018, we used water heaters and embedded kitchen appliances as the two main guarantees to ensure the profit growth of enterprises. In the past few years, embedded in the Vantage system has been called 'take it', that is, the main business of smoke stoves Under the premise of being unaffected, you can do something. This year, Vantage set up a special business department to focus on the development of embedded products, especially in the second half of the year, you will see a variety of embedded new products listed.
He also said that due to the small base, embedded products, despite the high growth rate, have little increase. By 2018, embedded products have accumulated a large enough volume. Although the growth rate is slowing down, user perception has formed. The overall increase is considerable. 'In the past, after the consumer chose the smoke stove, the embedded product may be considered. The hood is the traffic entrance; however, there is now a trend of becoming a traffic portal, and many users will choose because of After a certain brand of dishwasher, after the steaming oven, the hood is purchased by the hood. In addition, in the current home improvement and cabinet matching market outside the retail data sampling area of Zhongyikang, Aowei, etc., the digestion capacity of the fully embedded kitchen appliances is also Very impressive, some companies' engineering purchases can reach 30% of overall revenue, and Vantage is also actively expanding the market.'
Wang Xinbiao said, 'Embedded kitchen appliances are actually the strengths of Galanz compared to traditional smoke stoves. Compared with the smoke stove products that rely on new existing homes to carry sales, embedded products are more dependent on the stock market, adding new assembly and The reloading assembly accounted for about half of each. In the first half of the year, the category of smokers in the industry increased by about -9%, while the dishwasher category achieved a growth of more than 20%, while Galanz dishwasher products achieved a 32% increase.
'With the penetration of Western-style life, embedded products represent an upgrade of lifestyle. Many young and middle-aged people will use the kitchen as a place to open a party, show their cooking skills, and interact with their children. For example, steamed rice products are considered food nutrition and The choice made after the sale, the dishwasher is a choice to consider health and liberation of the hands. Traditional smoke stoves meet the needs of just need to solve the problem of eating; emerging categories are quality guidance, solve the delicious taste, happy problems With the advancement of high-end consumer demand, a series of new products, including embedded products, water purification products, and kitchen waste products, are bound to open a new era of growth in China's kitchen electric industry.