Refrigerator Industry Accelerates Structural Transformation: Seizing Intelligent Vents

OFweek smart home network news recently held 2017 China Refrigeration Industry Summit Forum news, the first four months of this year, the refrigerator market continued negative growth, companies face multiple tests, the survival of the fittest or will accelerate.

The forum was directed by the China Household Electrical Appliances Association and the Information Resource Development Department of the National Information Center. The China State Grid and Jingdong Household Appliances jointly sponsored the exhibition. Haier, Midea, Rongsheng, Meiling, and Bosch Home Appliances and other major domestic and overseas refrigerator brand representatives gathered to explore the topic. The new engine of future market growth. People in the industry believe that the intelligent ecosystem of refrigerators will become the next outlet after the wind cooling and frequency conversion.

Market faces multiple challenges

At present, the domestic refrigerator market pressure situation has not changed. Ove Cloud Network data show that domestic refrigerator sales for January-April 2017 were 9.1 million units, down 2.6% year-on-year, and sales were 25.8 billion yuan, down 0.2% year-on-year.

In the recent visits and investigations by the State Grid Corporation of China, most refrigerator companies indicated that the cost increase caused by the increase in raw material prices was around 18 points. The new version of the energy efficiency standard for refrigerators will reduce the power consumption of Class 1 by 40%, and the corresponding unit cost will increase by about 400 yuan. In addition, the real estate market is gradually tightening the impact on home appliance sales.

With the overall decline in the domestic refrigerator market, the market share of mainstream brands has risen against the trend. According to data from the National Information Center, in 2016, the market shares of Haier, Midea, Rongsheng, and Meiling have risen to 65.77%.

Cai Ying, deputy director of the Information Resource Development Department of the National Information Center, said that multiple negative factors and brand concentration increase coexist, indicating that the level of competition in the domestic refrigerator market will increase, the pressure for survival of small and medium-sized brands will increase, and the possibility of brand structure adjustment and elimination will increase.

Relative to the negative growth of the domestic market, refrigerators have a good momentum of export. From January to April 2017, refrigerators exported 9.16 million units, an increase of 16.94% year-on-year; refrigerators exported 1.217 billion US dollars, a year-on-year increase of 21.50%, and the average export unit price increased 4% year-on-year.

Wang Lei, deputy director of the China Household Electrical Appliances Association, said that although the overall situation of the domestic refrigerator market is still unclear, the refrigerator industry has seen signs of recovery from export data, and the industry's most difficult period may have passed.

Accelerate structural adjustment

In the face of market consolidation, refrigerator companies have accelerated the pace of structural adjustment from products to channels.

“Consumers began to pursue the enjoyment of quality after their basic needs were met, which brought new opportunities for the development of the refrigerator industry.” Guo Meide, vice president of Aowei Cloud Network, reminded that sales of low-priced products have been declining year by year, and high-end products The market sales are gradually increasing.

At present, the product structure of refrigerators is being upgraded toward large capacity, intelligence, environmental protection, and health. Related monitoring shows that the average volume of refrigerator products has risen from 250L in 2013 to 321L in 2016. The proportion of products above 400L also increased from 27.65% in 2013 to 53.5% in 2016. In addition, the penetration rates of air-cooled, variable frequency, and smart refrigerators climbed to 80.8%, 53.9%, and 10.8% in 2016.

The reform of the refrigerator industry channel is also advancing. Ove Cloud Network data shows that the online market continues to make rapid progress. In 2016, the sales volume of the online refrigerator market was 9.55 million units, an increase of 54.6% year-on-year; sales amounted to 16.8 billion yuan, a year-on-year increase of 57.5%.

Zhang Lixin, director of Jingdong Home Appliances Bing Washing Operation Department, stated that the growth of the online market will continue to be maintained. On the one hand, traditional consumer groups will gradually shift to the habit of buying online home appliances, high-income groups and young consumers will promote the upgrading of online product structure; On the one hand, with the increase in e-commerce channel subsidence and the continuous improvement of related services and after-sales, it will also bring about considerable growth in refrigerators and even large-sized home appliances. Jingdong Home Appliances-related data shows that as of the end of 2016, sales of more than 1,700 "Jingdong Help Service Stores" covering the vast countryside accounted for 30% of Jingdong Home Appliances business.

“County-area market is very likely to become the next force point of the home appliance industry.” Renowned electronics related people believe that compared with the stable development of the first and second-tier cities, the county-level market also has great potential for development.

Seize smart opportunities

Focusing on the future development, mainstream refrigerator companies actively participate in the intelligent transformation, and smart refrigerator fever is sweeping the industry. Haier Xin Kitchen Internet Refrigerator can automatically scan the bar code to identify the origin of the ingredients, nutrients, shelf life, etc., but also through the VOC smell freshness recognition technology to automatically identify the air quality in the refrigerator, automatic sterilization purification; US i + Smart 3.0 refrigerator Simply scan the user's body to obtain basic indicators such as height and weight and recommend healthy recipes accordingly; Whirlpool's Sixth Sense Smart Refrigerator can realize intelligent mode selection, load determination, and intelligent alarm.

In the eyes of some people in the industry, the future value of the refrigerator industry lies not only in the hardware itself, but also in the intelligent upgrading of the user experience to create an integrated family food ecological chain.

"Fridge intelligent ecosystem will become the next outlet after the air-cooling and frequency conversion." Ting Li, general manager of TCL White Goods Division believes that smart is the future trend of the refrigerator industry, but also an accumulation, adjustment, and improvement. development process.

On May 19th, Haier, the leading refrigerator company, released a healthy food cloud platform that opened up to the outside world and played a combination of "first-rate intelligent hardware + perfect ecosystem". Through nearly 1 billion interactions, Haier has created healthy food big data to provide users with services such as nutritious and healthy cuisine. According to the needs of users, Haier Xin Kitchen Internet Refrigerator relies on a healthy food cloud platform to provide third party resources to provide personalized services. Third-party resources can use this platform to directly understand the needs of users, and can also use the big data calculation to achieve supply chain optimization. At present, the healthy food cloud platform has attracted more than 600 third-party resources.

On May 22nd, e-commerce giant Jingdong teamed up with 18 refrigerator companies to launch the “Jingdong Smart Fridge Alliance” and launched Jingdong’s own brand smart refrigerator, aiming to open refrigerators through the “multi-scene, multi-terminal” smart business strategy layout. Fresh food supply chain closed loop. At the same time, through the cooperation of hardware vendors and platforms, the business model of “terminal + data + content + service” has been formed.

Lu Shenghua, editor-in-chief of China National Grid, said that the innovation of the technology and model of intelligent ecological chain is a useful exploration for the refrigerator industry to seek new market growth points. With the increase of urban and rural residents' level of consumption, people are more concerned about the improvement of the quality of life brought about by the product itself and the satisfaction of the consumer experience brought about by the service. Whether it is technological breakthroughs or model changes, companies should continue to meet user needs and enhance consumer experience while ensuring the quality of refrigerators.

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