Urbanization accelerates consumption of home appliances

The Third Plenary Session of the 18th CPC Central Committee called for accelerating the reform of the household registration system, fully liberalizing the restrictions on the establishment of towns and small cities, and accelerating urbanization. At present, the competition in the home appliance industry has become increasingly fierce, and the competition in the first-tier cities has become even more intense. Under such circumstances, many manufacturers have aimed their attention to the more rapid growth of the three or four-tier market. However, experts pointed out that the three or four-tier market is very broad, but it also has its own characteristics. Home appliance manufacturers must formulate appropriate strategies to effectively expand this vibrant market.

Urbanization Accelerates Household Appliances Consumption According to Lu Jiebo, deputy secretary-general of the China Electronic Chamber of Commerce, since the 18th National Party Congress, the speed of urbanization in our country has reached a new height, so the specific and broad area of ​​the rural market has formed a representative A new type of spatial economic organization between the market and the hierarchy is the clustered development. The rise of new-type urbanization construction will bring continuous power to home appliance companies on the basis of the initial popularity of home appliances in the rural household appliances market.

In the process of urbanization, as the income of residents increases and the living environment improves, the consumer demand for home appliances is also increasing. The National Bureau of Statistics predicts that every 1 percentage point increase in China’s urbanization rate will drive 7 trillion yuan in market demand. Jiang Feng, chairman of the China Household Electrical Appliances Association, said that by 2020, if China's urbanization rate reaches 62%, the rural market will accumulatively increase sales of home appliances by 4.5 trillion yuan. It must be said that the development of urbanization has led to consumer electronics market consumption. The vast space contained in the three or four city markets may become the engine that drives the growth of home appliance sales. Data shows that as of the end of 2011, the growth rate of the tertiary and tertiary markets has exceeded 20% for four consecutive years. Based on this, in 2012, the sales volume of the home appliance market in China's three or four levels exceeded 600 billion yuan, which has become a major source of growth for China's home appliance market. This change in growth has also caused home appliance manufacturers to focus on the third and fourth-tier markets. “Whether it is TVs, refrigerators and other household appliances, or small home appliances such as water heaters and range hoods, the ownership rate of the 3rd and 4th markets should be lower than the 1st and 2nd markets, with the increase in per capita income and the continuous increase in the degree of domestic urbanization. The demand for replacement of the market occupies the mainstream of the market.” Wang Lei, deputy director of the China Household Electrical Appliances Association, said that although sales volume and value growth of the household appliance industry in the first half of this year have been improving, market competition has intensified and forward-thinking companies have already taken the lead in extending their reach. To the three or four markets, and step up layout.

The development of the tertiary and tertiary market channels has accelerated the rapid development of urbanization. Although it provides a good external environment for the channel development of the home appliance industry, with the exit of home appliances to the countryside and the drastic increase of the market stock, how to make full use of the tertiary market? Business opportunities in the future have become challenges faced by major home appliances companies. Experts pointed out that if we want to take the initiative in expanding competition in the 3rd and 4th markets, channel construction is very important.

Lu Renbo believes that although the new round of channel construction of home appliance companies has been initially completed under the stimulation of home appliances to the countryside, the inherent dispersal of the three-to-four markets and the township appliance sellers with “self-employed, husband-and-wife stores” as the main form Problems such as messy purchase channels and inadequate business practices still exist, and they have become a drag for rapid market expansion. Take color TV as an example, the urban market contributes more than 45% to the national TV sales, while the rural market accounts for 55% of the national market, but due to the wide range, the average size is small, and the product quality is uneven. There is no guarantee for after-sales service, so to ensure the rapid and stable development of the rural household appliance market, it is difficult to realize the individualized and individualized stores that are currently scattered.

The accelerating progress of urbanization and the increasingly perfecting of the channel construction have also directly stimulated the upgrading of consumption in the three or four levels of the market, making it possible for the consumer groups whose original spending power is relatively weak to have accumulated sufficient strength. Lu Renbo said that on the one hand, the expansion of the population aggregation area brought about by urbanization will directly increase the demand for home appliances; on the other hand, urbanization can stimulate the overall income level of households from the perspective of price and quality of home appliances. Improve and narrow the gap between urban and rural areas. According to the survey, at the current stage, the psychological affordability of consumers in the tertiary and quartile markets has surpassed expectations, and its ceiling on the price affordability gradually converges with the primary and secondary cities. The optimization of channels will allow these consumers to have access to more new products, and will gradually shift from focusing on prices to focusing on product quality and services. At the same time, consumers, including the tertiary and tertiary markets, will gradually increase the technical and functional requirements of home appliances. Taking color TV as an example, the "viewing property revolution" brought by large-screen and ultra-high-definition and the "human-computer interaction revolution" brought about by intelligent manipulation are the two main lines for the development of flat-panel TVs this year. In addition, because of severe environmental problems, energy conservation and environmental protection have also become consumers' purchase factors.

Improve the network layout is the key 34 markets have a huge space for development, how can we effectively shake up this huge space? It is understood that household electrical appliance enterprises have already begun to lay out three or four markets, mainly in the form of stores in the channel Integration, but due to the large-scale, large-scale distribution of the three-four-tier market, home appliance companies can hardly realize the sinking of channels through the laying of specialty stores, which makes e-commerce channels emerge from time to time. However, due to the difficulty of e-commerce solutions to the last kilometer problem, the layout is not smooth.

However, no matter how it is laid out, mainstream brands have reached a consensus on the development direction of the three or four market channels. Lu Renbo pointed out that in response to changes in the market channels of the three or four levels, home appliance companies have already fought in the era of home appliances, but now, despite the great changes in the entire consumer environment and the market, they have seized the consumption of the three or four levels of the market. Demand characteristics and a complete network layout are still the key to business success. The integration of business channels, refined channel services, and integration of e-commerce resources are the main directions for future home appliances markets in the three or four levels, and are also the focus of channel competition. First of all, it is necessary to integrate channels as the main method, and secondly to combine new channels such as online sales with traditional formats. Although the online shopping army is an undeniable force in the home appliance market, it is due to the development level of the Internet in rural areas. Relatively low, logistics and distribution are more difficult, so the development is not ideal.

Su Liang, Ovid Consulting Brand Director, said that urbanization is the best opportunity for home appliance companies to expand their markets. They must formulate products and pricing strategies that are suitable for the tertiary and tertiary markets, and promote the construction of outlets as soon as possible, and strictly control the quality and after-sales service. Can we take the lead in occupying the commanding heights of the 3rd and 4th markets.

At present, many home appliance manufacturers are already doing this work. Such as Haier in the home appliance industry to achieve the first delivery to the village, with county-level, town-level outlets, and county-level coverage of more than 90%, to ensure that users receive the purchase of appliances in a short period of time. In the first half of 2013, Haier’s daily channel sales revenue reached 27.16 billion yuan, a year-on-year increase of 11.7%. In Japan, there are more than 7,600 county-level stores, 26,000 township stores, and 190,000 village-level liaison stations established throughout Japan.

According to Chen Qi, assistant to Suning Cloud's president, Suning will set up color TV, kitchen and digital products specials in the 3 or 4 market stores. In terms of services, Suning stores will set up functional areas such as customer service centers and after-sales service centers in stores to provide consumers with a one-stop service experience and rely on Suning's strong logistics capabilities to ensure the timeliness of delivery and installation. In addition, Suning's stores set up in the 3rd and 4th markets will also set up a standardized system in the shopping mall environment and shopping experience to ensure that local consumers can enjoy a high-quality shopping experience.

Gome is also using the e-commerce to force the 34 market. GOME’s more than 40 branch offices all have e-commissioning specialists. GOME’s new ERP system has been able to support more than 400 cities and domestic county-level or above markets to place orders online.

In 2013, Tmall entered into an in-depth cooperation agreement with China Post. The two companies jointly initiated cash on delivery services covering 31 provinces, municipalities and autonomous regions across the country, covering 2000 counties and cities nationwide. This is Tmall's logistics delivery system for the fourth and fourth-tier markets following the joint delivery of nine express delivery companies including Shunfeng, Shentong and Yuantong in 2012.

Industry insiders believe that compared with the emerging pure e-commerce channel, Gome, Suning, and Rishun are clearly superior to other channel giants. Coupled with various home appliance channels in the staking area, the battle between the current and the third-grade market channels has been pulled. Prologue.