exploded! Home appliance prices are rising! rise! rise! Six times the sales volume! TV goes up by 1,000 yuan a month...what happened?
As the Spring Festival approaches, many consumers want to buy some home appliances or replace them with new ones. Therefore, the Spring Festival is also the traditional peak season for the home appliance market. How has the situation changed this year?
Sales of home appliances before the holiday hot prices rose
In a home appliance store in Shenzhen, a salesperson here told reporters that although it is not a weekend, the flow of people has increased significantly than usual, and since 2021, home appliance sales have also seen a boom.
Liu Dianjie, general manager of Suning Tesco's Shenzhen Regional Home Appliances Company: 3C consumer electronics products above 3,000 yuan, a year-on-year increase of 67.77%; small household appliances ranging from two thousand five to three thousand yuan are sought after by the public, with a year-on-year increase 676.33%.
Affected by the epidemic, the previously suppressed consumer enthusiasm has recently experienced a concentrated outbreak. The more than 6-fold growth of small home appliances can also reflect the recent hotness of the home appliance market.
The reporter also found that not only did the sales volume of home appliances increase, but the sales price also rose to varying degrees.
A staff member of a TV store said that their TV sales have increased by nearly 80% recently. At the same time, the price fluctuations are not small. Take a 55-inch TV as an example, the price is now up more than 20% from last year's low.
During the interview, the reporter learned that price increase can be said to be a key word in the recent home appliance market. The sales staff of this washing machine brand even claimed that they have received notification from the manufacturer that the price will continue to increase soon.
However, the general price increase is a bit unacceptable for many consumers who want to take advantage of the promotion a year ago and change their home appliances.
Shenzhen consumer Ms. Zhang: I want to change my refrigerator, so I just have a look.
The psychological price is about 5000, 6000, which is already 5 digits, I will not consider it.
Shenzhen consumer Mr. Li: At the end of December last year, I paid attention to a high-end color TV set at RMB 10,999.
Come and take a look now. I was thinking about buying it at a lower price during the New Year, but I didn't expect it to be 11999 yuan, which is a bit higher.
For such a price increase trend, various home appliance stores have also given corresponding countermeasures. They reduce the terminal price as much as possible through activities such as profit promotion and issuing coupons to attract more consumers to buy.
Home appliance companies received orders softly to grab orders during the New Year
The sales volume has increased sharply and the price has risen steadily. This has given home appliance manufacturers more confidence and motivation. Many companies are now working hard and working overtime, hoping to complete more orders as soon as possible.
Jin Qing from Liaoning is an engineer who is mainly responsible for staff positions on the production line.
Since the fourth quarter of last year, her production line has been operating at full capacity.
And this Spring Festival, she decided to stay in the factory for the purpose of ensuring production.
Jin Qing told reporters that because the demand for large-size TVs has recently been in short supply, her company plans to expand several large-size production lines.
To this end, they also launched a large-scale recruitment campaign before the holiday to ensure that the production line is fully opened during the Spring Festival.
Wang Wei, deputy director of the planning and logistics department of the TCL Electronic Operations Center: Because the current order volume is relatively sufficient, there will be basically no holidays and production during the Spring Festival.
As for the employees, we need to recruit some supplementary employees to ensure our full-load production. It is estimated that 2,000 people will be recruited.
According to the person in charge of this company, the main reason why they have to operate at full capacity is that both domestic and overseas orders have increased significantly over the same period last year.
Wang Cheng, CEO of TCL Industrial Holdings Co., Ltd.: Last year, the sales of our own brands in overseas markets increased by 26% year-on-year.
Take TV as an example. Last year, our global private label TV shipments reached 23.93 million units, which is a record high. Last year was equivalent to exceeding the target set at the beginning of the year.
In 2020, not only the sales of major appliances will increase significantly, but also small appliances.
The person in charge of an air purifier manufacturer in Dongguan, Guangdong said that thanks to the improvement of the industry's prosperity in 2020, their product sales have also reached a new high, and in 2021, it is expected to continue the growth trend of the past year.
Wu Tianwen, chairman of Guangdong Dongguan Jingnuo Environmental Technology Co., Ltd.: In 2020, we have increased significantly compared with 2019, and the growth rate has exceeded 50%.
In 2021, we believe that this good momentum of 2020 will continue.
The price of raw materials, chips, etc. is still not digested
Although orders have increased significantly and terminal prices have also risen significantly, companies have also said that they are under great pressure.
The main reason is that since 2020, the rising prices of raw materials and chips have also eaten up the profits of many home appliance manufacturers.
It is understood that since the second half of last year, the home appliance industry has begun a new round of price increases.
Monitoring data from the third-party organization Aowei Cloud Network shows: December 2020,
In the online market, the average price of color TV sets was 2,569 yuan, a year-on-year increase of 27%; the average price of washing machines increased by 10.2 percentage points year-on-year; the average price of the air-conditioning industry was 2,947 yuan, a year-on-year increase of 19.3%.
In the offline market, the average price of color TV was 4,717 yuan, an increase of 21.5% year-on-year; the average price of the washing machine industry was driven by the structural growth of drums, an increase of 8.2 percentage points year-on-year; the average price of the air-conditioning industry was 3837 yuan, an increase of 9% year-on-year.
Lin Huanyu, chief analyst of the home appliance industry of Huatai Securities: The main reason for the rise in these raw materials is the overall supply of overseas production capacity.
Due to the epidemic, the current overseas production situation has certain restrictions, which has led to a shortage of the entire logistics and supply chain.
Therefore, the shortage of raw materials for home appliances may continue for some time.
Industry insiders told reporters that the cost of raw materials can account for more than 70% of the home appliance manufacturing industry.
The home appliance industry has a large demand for bulk raw materials such as copper, aluminum, steel, and plastics, and rising prices of core raw materials will inevitably bring cost pressures. Under this circumstance, fluctuations in the prices of some home appliances are also in line with market rules.
Wu Tianwen, chairman of Guangdong Dongguan Jingnuo Environmental Technology Co., Ltd.: The price of plastic raw materials has increased by 30 to 40% compared with the historical average, and has nearly doubled compared with the lowest point at the beginning of 2020.
In addition, affected by the overseas epidemic, the prices of some imported materials have also risen sharply, with chips being the first to bear the brunt.
According to industry insiders, the overall price of chips has risen by about 30%, and the supply is still in short supply.
Although under the pressure of rising costs, home appliance companies are generally full of expectations for 2021, expecting their companies and the entire home appliance industry to get rid of the epidemic completely and embark on a healthy and orderly development path.
Wang Cheng, CEO of TCL Industrial Holdings Co., Ltd.: I think 2021 will be a big year for sports, and many countries are still affected by the epidemic. Everyone is more of home activities, so I think the demand for screen products It will continue to be maintained at a relatively high level.
Wu Tianwen, chairman of Guangdong Dongguan Jingnuo Environmental Technology Co., Ltd.: Everyone still stays indoors and pays attention to indoor health.
From a long-term, medium- and long-term perspective, it is actually the improvement of everyone's consumption awareness and living standards, and the demand for this type of healthy products will still rise.