Aunt Yao, who lives in Guangzhou, changed a motor for a drum washing machine that had been in use for ten years during the "Eleventh" holiday, which cost 600 yuan.
She went to a big shopping mall to check the price of the new drum washing machine. It was more than 5,000 yuan, which made her choose to repair the old washing machine first and continue to use it for a while before calculating.
This is a microcosm of the cold in the home appliance market during the National Day holiday this year.
According to AVC Data Compass, in the 40th week of 2021 (September 27 to October 3), China's domestic offline channel home appliance sales decreased by 1.94% year-on-year, and sales decreased by 18.42% year-on-year.
From the comparison of sales and sales, the average sales price of home appliances has risen sharply year-on-year.
Under the national guidelines of "housing and not speculating", localities have strictly controlled the increase in housing prices, but overall, housing prices are still relatively high. With the increase in the purchase limit policy, it is not easy for ordinary people to buy and change houses.
Real estate is the leader of the home appliance-related industry chain. Real estate is not booming, and consumer demand for home appliances has also been dragged down.
The new crown pneumonia epidemic that broke out last year has gradually been effectively controlled in China, but there are still sporadic epidemics in some areas, which continue to tighten the nerves of epidemic prevention and control in various places.
The epidemic has restricted the movement of people and weakened the vitality of the market. The income of the people as a whole has been affected to a certain extent, and the purchasing power has been weakened.
In addition, since the beginning of this year, the purchase cost of bulk raw materials such as copper, steel, and plastics has risen sharply, which has significantly increased the terminal retail prices of home appliances, and has also restrained some demand.
According to Ovi Data Compass, in the 40th week of 2021, in the offline channels of the domestic appliance market, the average prices of refrigerators, washing machines, and color TVs increased by 908 yuan, 579 yuan and 1,437 yuan respectively year-on-year.
During the National Day Golden Week of "11", the gold content is now declining, which is also related to the excessive frequency of promotional nodes throughout the year.
Once upon a time, there were two Golden Weeks on May Day and November; now, Yuan Chun, March 8, May Day, 520, 618, 818, Mid-Autumn Festival and National Day, as well as Mother’s Day, Father’s Day, etc., have festivals every month, and weekly promotions , Consumers are "tired".
After National Day, isn’t there a "Double Eleven"?
Therefore, it is difficult to impress consumers by relying solely on gimmicks.
Like Yao Apo mentioned above, she wants product function upgrades and economic benefits.
Under this circumstance, if home appliance manufacturers want to truly capture the hearts of consumers, they might as well take the following paths.
First of all, sort out the supply chain, remove the links that do not add value, and let the benefits go to the consumers of the retail terminal.
The price increase of bulk raw materials is real. Consumers are affected by the epidemic and their purchasing power is weakened. It is also an objective reality. If factories want to make money, consumers must buy affordable products. The value-generating link is abolished.
This is also the reason why Gree Electric’s sales companies in various regions have been cut off. They can no longer take advantage of the regional "general agent" and will gradually move towards a new retail model of "factory-retailer-consumer" in the future.
Second, use the power of technology to absorb the pressure of rising costs, improve efficiency, optimize products, and benefit consumers.
Like Kangsheng, a refrigeration accessories for household appliances, the main product is refrigerator condensers. This year, with the copper price hitting a new high in the past ten years, it will further accelerate the technological innovation of new materials such as "substituting steel for copper" and "substituting aluminum for copper". Assisting power plants to reduce the manufacturing costs of refrigerators, air conditioners, etc.
In another example, Haier and Midea are speeding up their digital transformation through the Industrial Internet, developing mass customization, reducing inventory, accelerating turnover, and meeting individual needs.
In addition, seize the needs of market segments, develop them appropriately and reasonably, and cultivate structural growth opportunities.
According to Ovi Data Compass, the domestic offline sales and sales of clothes dryers, integrated stoves, and dishwashers in the eleventh promotion season (the 40th week) of this year have all grown against the trend.
The hot sales of clothes dryers and dishwashers benefited from the "lazy economy" and consumption upgrades, and integrated stoves can help consumers improve the utilization of kitchen space.
It is worth noting that the sales of dishwashers increased by 6.48% year-on-year, and the growth rate has slowed down.
I have heard complaints from relatives and friends around me that the dishwasher is not clean enough.
Therefore, these consumer-upgraded home appliances need to be more and more affordable on the one hand, and on the other hand still need to focus on solving consumer pain points, so that the market can grow healthily and sustainably.
During the Golden Week of November, the consumption of tourism and catering is strong, but the home appliance market is very cold. Many home appliance manufacturers are not even willing to talk about the situation in the Golden Week market, and seem to be used to the dull consumption situation.
In fact, when one door is closed, the other door is opening.
Some home appliance retailers have transformed into "home customization + whole house appliances" service providers, and some home appliance retailers have expanded their sales of electric vehicles or electric bicycles.
In the era of smart home, home appliances, home improvement, and home furnishing industries are converging to provide integrated solutions, which is also a win-win choice for businesses and consumers.
Author: Wang Zhen