The leading companies in any industry will create a relatively healthy and sustainable "industrial ecology" for the industry, so that large and small enterprises have their own space for survival and development. Among them, the most important thing is that large enterprises will not adopt price reductions and compete with small enterprises for low-end market share. Instead, they will continue to increase the industry's upward space and open the ceiling of industrial growth through technology and product innovation.

For example, Apple in the mobile phone industry will not launch cheap special machines to suppress small businesses and achieve the entire industry's take-all; similarly, in the communications equipment market, Huawei will not take price reduction measures to block some small and medium-sized enterprises. The market space of enterprises is to compete with Cisco and other companies to expand the space for Chinese enterprises to move upwards. Over the years, Haier, Midea and Fotile have been pushing Chinese companies to enter the high-end market and high-end consumption in the home appliance industry, instead of reducing prices to suppress small businesses.

However, in the past few years in the Chinese home appliance industry, the Internet industry represented by Xiaomi "barbarians" entered the home appliance industry across the border, but while holding the bowl of the home appliance industry, eating the meals of the home appliance market, they have to openly smash it. Pots and bowls for the appliance industry. The "industrial ecology" that has been continuously impacted and destroyed in China's home appliance industry after more than 30 years of development and cultivation, relying on the production capacity of some second- and third-tier companies, squeezed the market survival space of other second- and third-tier companies at low prices.

For the new army of the home appliance industry such as Xiaomi, after entering the home appliance industry, they have not established their own manufacturing, quality control, and supply chain systems. They rely entirely on the supply chain and platforms of Changhong, Skyworth, TCL and other established home appliance companies. Production chain. It can be said that only after enjoying a set of mature, perfect, stable and reliable resources and dividends created and accumulated by the home appliance enterprises over the past 30 years, can they perform in the Chinese home appliance market in a short time. Without the efforts and precipitation of the Chinese home appliance industry over the past 30 years, it would not be possible for Internet companies such as Xiaomi to crash in the home appliance market.

What is unexpected is that after entering the home appliance industry, these Internet companies, in order to quickly gain a foothold in the market, grab orders and users ’attention, first adopted a bottomless market hype, which will provide them with a continuous stream of high-quality home appliances. Companies, described as "traditional backward companies", "high profiteering companies", and then labeled their "low-cost operation, low-price dumping" with a cost-effective label, which is best known as "new domestic products", openly Drop pots and bowls in the appliance industry.

Compared with many leading companies in the home appliance industry such as Haier, Midea, Hisense, Gree, Fotile, Joyoung, although Internet companies such as Xiaomi have "aggressive and rapid development" in the home appliance market in recent years, and have harvested some Orders for young users. But it belongs to the typical "external heat and internal deficiency": If Haier and Midea are the technology innovation, quality manufacturing and lifestyle creators of the home appliance industry, Xiaomi is a "marketing planning and content creation company" in the home appliance industry. The driving force of the former is technology and products, which are the soul of the industry, while the driving force of the latter is low prices and speculation, which is just a gust of the industry.

However, it must be clearly realized that in recent years, along with some Internet companies, in the appliance market, ultra-low prices, vulgar marketing hype, and bottomless event planning, etc., have "slammed into chaos", which has brought about The impact and destruction of a relatively rational and healthy "industrial ecology" that has formed over the past few decades. In the end, if many home appliance companies, especially first-tier and second-tier companies, as well as third-tier and fourth-tier companies, let Xiaomi such a "branded home appliance" company continue to destroy the well-developed ecosystem of the home appliance industry at extremely low prices. The foundation of the development and survival of the home appliance industry has been shaken and affected.

In particular, those household appliances companies that are currently "smug-hearted" and "beautiful" because they are responsible for the production of Xiaomi's major consumer electronics products, releasing part of their excess capacity, will eventually be the first batch of companies to be eliminated. Because these Internet companies are currently "smashing the rice bowl of most home appliance companies" to "eat the rice bowl of the home appliance industry." Its business model and business logic do not have so-called "user thinking" innovations. Instead, it uses low-cost operation methods such as "manufacturing and service" to outsource. The hardware is not profitable or less profitable. The revolution in "home appliance hardware profitability can survive and develop enterprises," and finally laughed to the end.

This kind of Internet company that ignores the "industrial ecology" and only knows that it can harvest the home appliance market and user cake by means of low prices. Although it will continue to maintain a certain growth under this wave of "consumption polarization" in the short term, even Will shake the foundation of survival and development of a group of veteran enterprises in the home appliance industry. However, as a group of second-tier and third-tier home appliance companies are fully awake and recognize the long-term dangers of OEM for these ultra-low-cost Internet companies, once they terminate their foundry cooperation, these Internet companies will eventually The prosperous scene created will soon disappear like the "mirage".

Source: Appliance Circle