Since 2019, the high-end battlefield of China's home appliance market has been completely "fallen". AWE predicts that the hotspot and focus of competition in the home appliance market in 2020 will no longer be just low-price battles, but will focus on new products and concepts in the high-end market, as well as the popularity of green smart energy-saving.
As the high-end market is disrupted and robbed by a large number of speculators and fish-sniffers, since the second half of 2019, the next battle in the high-end market has begun.
It is worth noting that this new battle of high-end home appliances is not simply a transition from high-end to luxury and light luxury, but a "clearing and shuffling" knock-out in the high-end home appliance market. Fully maintain the high end Market entry barriers and levels of competition, to avoid conceptualizing the high-end market, to prevent homogenization and conceptualization of the high-end market, and to fully squeeze the living space of high-end speculators.
Why do you say that? In the past two years, the high-end home appliance market has directly changed from the past blue ocean into the Red Sea bloody battle. First of all, from the perspective of the competitive situation, the high-end market continues to grow in the home appliance industry. From the past, the small piece of meat on the top of the pyramid was mainly the home of foreign brands such as BSH, Panasonic, Sony, and Samsung. It has become a pancake feast, a large number of Chinese local brands have been born, and attracted some speculators' muddy waters.
Secondly, in terms of the number of brands, a large number of new recruits and veterans in the high-end market have launched their efforts in the high-end market. Old foreign brands such as Panasonic, Whirlpool, Bosch, Siemens and others are old style in the high-end market, while new big names such as Casarte, Fotile, and Colmo are rising strongly. At the same time, there are still a large number of new recruits who choose to fish in muddy waters.
Moreover, in terms of market competition, the mid-to-high-end market has become the home of competition and a new dividend for consumption. Whether it is offline physical stores or online stores, they are pushing boutiques, adjusting structures, and fighting high-end. Low prices have completely reduced to the signs and methods of retailer drainage. All home appliance manufacturers know that "low prices that do not make money" cannot be done. They will only fight for large-scale shipments.
Under this pattern, the high-end home appliance market has deteriorated from a blue ocean business opportunity to a red sea battle in just over 10 months this year, and the market has rapidly fallen: on the one hand, there are a large number of products and brands under the high-end banner. Low-price promotions in the first-tier market grab cakes, muddy waters and fish, disrupt the high-end market, and take the direction of high-end competition. It is believed that high prices are high-end, and high-end diving and price cuts are endless.
On the other hand, there are a large number of fake high-end and fake high-end products that directly grab business in the first-tier market. Simple and crude have turned high-end into high-profit business opportunities, but ignored the brands, products, and values behind high-end. Investment and construction make the high-end market the next low-price mud pit.
Regarding the nature of high-end home appliances, whether it is a brand, retailer, or consumer, it is not a simple high-price conceptualization, let alone a low-price war under the banner of high-end, selling low-quality products; it should be truly aware of High-end will be the strategic highland of the home appliance industry for the next decade or even longer, and it is also a key step for many enterprises and businesses to seek survival and development.
At this stage, the nature of this round of high-end chaos appears in the home appliance market. On the surface, this is a battle for business opportunities after the market cake has become larger. In fact, it is a problem of low high-end thresholds and lack of high-end standards. A cat and a dog can enter into a piece of cricket. The sooner this chaos occurs, the sooner it erupts. The home appliance industry believes that it will be more favorable for the high-end of the home appliance industry to detonate to a normal and healthy track.
Of course, in the next battle of high-end appliances, the ultimate means must be for large companies to conduct market-based cleanup and reshuffle after the allocation and optimization of market resources.
Source: Home Appliances Circle