Eight keywords of China's home appliance revolution in 2019

 

Keyword 1: good policy

 

At the beginning of the year, a new policy to stimulate home appliance consumption was jointly issued by the ten ministries and commissions, which kicked off the favorable policies for the home appliance industry in 2019. In the subsequent Article 20 of the country, the manufacturing tax rate was reduced to 13%, adjustments to personal income tax, value-added tax rates, and reduction of social insurance rates were all optimized from the national level. Its main purpose is to stimulate consumer demand and corporate development vitality.

 

The positive aspects of industrial policies also include standardizing the healthy development of e-commerce, and promoting the upgrading of high-definition, green and efficient industries. The former includes the formal implementation of the Electronic Commerce Law, the "Regulations on Optimizing the Business Environment (Draft)" passed review, and the "Guiding Opinions on Promoting the Healthy Development of Platform Economy and Regulations" were issued; the latter includes the "Ultra HD Video Industry Development Action Plan (2019-2020) "and related standards, as well as" Green and High-efficiency Refrigeration Action Plan "," Promotion Plan for Promoting the Update and Upgrade of Key Consumer Products and Unblocking Resource Recycling Implementation Plan (2019-2020) ", etc.

 

Keyword 2: Standard threshold

 

From the perspective of the home appliance industry, many new national standards related to emerging product categories, guiding industrial quality, safety, health, and service upgrading are also emerging in 2019. These include: the mandatory national standard "General requirements for health and safety of household and similar electrical appliances"; the new national standard of ergonomics for refrigerators and air conditioners; the new national standard of "Electric Toilets for Household and Similar Uses"; And after investigating the startup advertising of 10 brands of smart TVs, a draft of "Smart TV Advertising Service Specifications" was issued for comment.

 

More groups and industry standards are also guiding industry norms and high-quality development, covering categories including electric toothbrushes, rolls / hair straighteners, wall-mounted washing machines, electric clothes dryers, dishwashers, smart locks and other emerging categories; meanwhile, the industry The standard has also expanded its coverage to services and other levels, such as regulating refrigerator transportation and air-conditioning protection pipe slot installation. Standards for industrial upgrades focus on 8K TVs, smart refrigerators and air conditioners, silk reference washing machines, and 5G shared air.

 

Technology drives standards first, and standards have become an invisible threshold for competition in the home appliance industry. For home appliance manufacturers, on the one hand, they look forward to the improvement and formulation of standards, pushing the industry threshold higher, and on the other hand, they are walking on the edge of the standard, trying to drill holes in the standard to speculate.

 

Keyword 3: 5G commercial

 

In June 2019, the Ministry of Industry and Information Technology issued 5G commercial licenses to China Telecom, China Mobile, China Unicom, and China Radio and Television, marking the formal entry of China into the first year of 5G commercialization. For the Chinese home appliance industry, on the one hand, it brings new opportunities for 8K and other ultra-high-definition videos and industrial upgrades; on the other hand, it broadens the new track for the development of IoT and accelerates the interconnection and interconnection of various intelligent terminals, thereby opening up industrial competition.  

Within half a year of the issuance of a 5G commercial license, Hisense, Suning, Konka, TCL and other home appliance companies choose to cooperate with operators to seize the 5G first opportunity. In addition, there are also black-and-white electricity companies testing water cooperation to target smart home and smart home solutions in the 5G era. And Huawei officially entered the hardware with a smart screen, to a certain extent also after 5G commercial use, to achieve the killing of software and hardware in the smart home field. Obviously, 5G commercial use has written a new starting point for the change of China's home appliance industry.

 

5G still only solves the problem of channels. For home appliance manufacturers, 5G can only be regarded as a starting point or a force. The key is to solve the internal product performance, experience, technology, and the seamlessness of different brands and different products. link. The user is the main protagonist to detonate the market and leverage demand.

 

Keyword 4: Deep layer cultivation

 

The overall demand for the home appliance market is sluggish, but the market segment is getting windy in 2019. The "one-person food" product in the small household appliances field has become an Internet celebrity. There are also many more sub-categories in the traditional home appliance market: car refrigerators, cosmetics refrigerators, refrigerators suitable for mothers and infants, special washing underwear, and healthy bacteria-free washing machines for the elderly. Tailor-made air conditioners, more eye-friendly TVs, air conditioners and refrigerators that cooperate with IPs such as Disney and NBA. Behind it is the accelerated landing of the consumption circle.

 

In addition to the continuous innovation of segmented products, this year's multi-brand operation of home appliance companies also focuses on segmented markets and segmented circles. Behind this is the personalized and diversified needs of users, and different user circles have become the new subjects that enterprises should face. Especially for the already-developed home appliance industry, tapping market segments, further sinking and diversification, is exactly the turning point in the Internet era to find new growth points by breaking out of scale.

 

Operating circle users is not only an opportunity for large household appliances companies, but also a life-saving straw for many small and medium-sized enterprises. Because for many small and medium-sized enterprises, neither the products nor the market resources support global grabbing, but they can deeply cultivate regional markets and subdivided markets to find future survival space.

 

Keyword 5: Technology grabs

 

Looking back at the star products in 2019, there will be many new terms, new trends and new outlets appearing on the market: Hisense's social TV, stacked screen TV; Haier's 5G air conditioning, air washing ...

 

It can be seen that in addition to the traditional low-price war, home appliance manufacturers focus on the first-tier market, and seizing the high technology has become a more preferred choice for home appliance companies. For the industry, this is a good sign. At least companies have realized that inefficient competition methods such as scale and price war are no longer suitable for this rapidly changing era and competitive environment. Returning to more essential product innovations and technological innovations is an important direction to meet demand. However, it should be noted that any innovation must be close to the user, and the concept of creation must not be reduced to a marketing gimmick.

 

The high-end home appliance market has already begun to explode. It is driven by technology rather than simple high positioning and conceptual hype. This also reminds all home appliance manufacturers, whether it is to grab the cost-effective market or the high-quality market, it is necessary to deepen the technology.

 

Keyword 6: Rejuvenation

 

Selecting traffic stars and small fresh meat as brand endorsements has become a new hot spot in the home appliance industry in 2019. Traffic endorsements are just a microcosm of the home appliance industry's accelerated youth transformation in 2019.

 

At that time, under the operation of Internet companies, rejuvenation was once considered synonymous with low prices. However, nowadays, with the innovation and layout of many home appliance head companies, this is becoming a breakthrough point for home appliance companies to lay down their bodies and shelves and actively embrace users and listen to their voices.

 

Keyword 7: scene experience

 

Regardless of whether it is a home appliance brand or a home appliance retailer, after the concept of "scenarioization" and "experience" was proposed for many years, it set a milestone for application in 2019. The most representative is Haier Landing Experience Center No. 001, which comprehensively displays the "5 + 7 + N" smart scene solution at a close range; Suning Tesco has 37 Wanda offline stores in its pockets, and JD.com Super Experience Store opens in Chongqing Are new models that bring consumers deep experience with online and offline integration. Midea's air-conditioning marketing is based on the six layers of windless technology, and IP opened by a unique approach is another interpretation and breakthrough of the scene experience.

 

The core of scene experience is living and experiencing. For home appliance manufacturers, new requirements have been put forward, that is, they must go out of the past “strong buy and strong sell” sales promotion and “fool cheat” shopping guides, and truly move towards the user-centric real product experience. Products and brands are embedded in users' minds.

 

Keyword 8: Cross-border cooperation

 

Cross-border is not just a simple marketing collaboration. This year, Gree Electric cooperated with Sophia Home, Fotile Group joined hands with OLO Home, Midea Real Estate's subsidiary cooperated with smart home company Orebro, and Midea Skyworth opened cloud-cloud docking, all of which create a pan-home ecological experience in the smart era. At the same time, there is also the "three-in-one" marketing cooperation between Oaks Air Conditioning, Siemens Home Appliances, and A.O. Smith. This is not only a new measure to cope with incentive competition, but also a new way of exploring each other.

 

It can be seen that in recent years, the "cross-border cooperation and strong alliance", which has been the hot word of the home appliance industry in recent years, is deeper and more widespread in 2019. Its cooperation subjects, cooperation content, and cooperation model have also deepened. It has not only combined technical and business aspects, but is also exploring new areas and new marketing methods for a win-win situation. Perhaps more companies have realized that this era is no longer an era of solo fighting, but an era of warming up together and resisting the cold winter.

 

Cross-border cooperation is not just a means. For home appliance manufacturers, in addition to front-line marketing and user-oriented needs, cross-border cooperation can be launched. At the same time, it can open its arms at multiple levels such as technology research and development, product iteration, and strategic layout , Docking with world-class technology and resources, sharing and sharing!

 

Source: Appliance Circle