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Foreign brands in the domestic home appliance market may be further marginalized.

iconNov 13, 2021 17:23

No matter from which aspect, the absolute dominant position of the national brand in the home appliance market will be unshakable, and this position will be further strengthened at any time by the changes in the user group, circulation mode, business model, demand mode, corporate governance structure and so on. Behind this trend is that the foreign brand group that used to occupy the dominant position in the high-end field will continue to be marginalized. Moreover, the current overall macro environment is not conducive to the development of foreign brands.

First of all, the younger switching of user groups has a great impact on foreign household appliance brands, especially Z-era users, their growth environment does not have a deep understanding of the rise of Chinese household appliance brands. What they see at the beginning of their vision is the dominant position and strength of national brands in the pattern of home appliances. With the continuous improvement of China's economic development and purchasing power, the national self-confidence of the younger generation of users has become stronger; moreover, the over-traditional brand communication mode of foreign brands is also difficult to resonate with young users, and they have no awareness of foreign brands.

Second, at present, the investment of domestic brands in technology research and development and product development is far higher than that of foreign brands, and the vast majority of home appliances products. Over the years, many foreign brands have not launched a series of new technologies and products aimed at the Chinese market, while the improvement of domestic brand technology and product capability has greatly reduced the quality gap between domestic brands and foreign brands, and even surpassed foreign brands in most products. This is particularly evident in white goods and chef electronics.

Third, the high-end field of foreign brands have become the protagonist, more than a decade ago, the domestic home appliance market in high-end demand for almost all foreign brands, and now domestic high-end brands such as Casati, COLMO, etc., have occupied a dominant position in high-quality demand, in recent years COLMO growth is particularly rapid, this year's COLMO washing machine production and sales volume exceeded 1 billion yuan, the overall production and sales scale of COLMO in the first three quarters exceeded 3 billion yuan. A few years ago, Casati climbed market sales to about 10 billion yuan. In the category of cigarette cookers, the high-end proportion of brands such as Fang Tai and the boss is also very high.

Fourth, it is difficult for foreign brands to keep up with the changing trend of the business model in the Chinese market. Although the release of online dividends is no longer faster than in the past, the online system of many household appliances accounts for more than 50% of sales. Small electric products account for a higher proportion; Moreover, e-commerce itself is also constantly changing. After the traditional e-commerce represented by Amoy and JD.com stirred the circulation reform of the domestic home appliance market, social and social e-commerce has emerged as a new force, and now the online platform is changing to content e-commerce; live e-commerce is also impacting the entire business system, which is reflected incisively and vividly in this year's Singles' Day node.

In the process of the reform of this business model, the proportion of foreign brands has declined year by year. In the list of every kind of online platform every year, except for individual products, it is difficult to see foreign brands. Their brand tone, product positioning, marketing methods and so on have been out of line with the evolution trend of business model in the domestic home appliance market.

Fifth, intelligence has become a trend in the domestic home appliance market, and foreign brands are absent in this trend. Whether they are large household appliance groups represented by Midea, Haier, Gree, TCL, Hisense, Changhong, Skyworth, etc., or widespread small and medium-sized household appliance enterprises, almost all take intelligence as the focus of product development, and Midea even writes comprehensive intelligence into the enterprise strategy. And formed a comprehensive cooperation with Huawei Hongmeng system. But in this respect, foreign brands have little voice.

Sixth, it is difficult to see foreign brands in the trend of product differentiation and personalization. Silver hair economic products, multi-functional blended products, suite products, household integration products and so on are all domestic brands. Idiosyncratic design, personalized features, preference functions such as car air conditioners, kitchen air conditioners and other more detailed products, but also almost domestic brands occupy the mainstream.

Seventh, a large number of foreign brands also lack strategic attention to the home appliance market, and some have even abandoned this industry. Domestic brands have acquired many foreign brands around the world through capital means over the past many years. Haier, Midea, Galanz and other enterprises have corresponding cases in this regard. The widespread occurrence of such cases is not beneficial to the foreign brand community itself.

There is a sharp contrast between the strategic adjustment of foreign brands and the continuous improvement of domestic brands. National brands are not only expanding the investment in technological research and research, the investment in user research and the expansion of intelligent systems. At the same time, it is also further shortening the access with users, strengthening the innovation of marketing methods and production and marketing models, and not weakening the expansion of internationalization. Therefore, foreign brands may be further marginalized in the domestic home appliance market. China is already the manufacturing center of global home appliances, the consolidation of the leading position of national brands in the domestic market and the continuous expansion of overseas markets. it is also promoting the rapid growth of national brands in the world.

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