The home appliance industry will face four uncontrollable challenges next

Appliance&electronics World Expo (AWE) will be held in Shanghai New International Expo Center from March 17 to March 20, 2022.As the industry vane, AWE not only guides the development trend of industrial products, but also guides the transformation of life style, providing a precious opportunity for domestic and foreign home appliances and consumer electronics enterprises. Enabling the supply and demand sides of home appliances and consumer electronics to communicate in close proximity is a platform to show innovation results to consumers and capture their needs and pain points.


Different from other industries, has entered the mature period of China's home appliance industry, obviously by the external impact and damage, obviously much less. However, in the face of the economic and market environment in the next few years, Enterprises and businesses in China's home appliance industry will still face four "uncontrollable" shocks and challenges in a certain cycle channel.


One is the rise and fall of raw material prices.

From the beginning of last year, to this year, a wave of bulk raw material prices as a whole in the continuous rise in the channel, but the middle still appeared several rounds of falling back. In combination with supply, demand, external economy, epidemic and other volatile factors, the price of raw materials in the future will change from rising all the way in the past to rising and falling, without regularity or cycle, and with strong contingency and mutability. The strength of the impact of the rise and fall of raw material prices is related to the two abilities of home appliance manufacturers: first, the stability of the supply chain and the integration of the industrial chain; Second, user-oriented brand premium ability and product pricing ability.


Second, epidemic disease and other social factors fluctuate.

Outbreak of this kind of social variables, for the influence of the home appliance industry is embodied in three aspects, there are good and bad: it is good, the outbreak could accelerate pay more attention to family for a healthy, structured products sales boost for home appliances manufacturers, namely in the high-end product promotion progress accelerated, also let more enterprises to adapt to the online digital management, office, improve management efficiency; Second, it is not good. The fluctuation of a large number of epidemic cases directly increases the difficulty and resistance for many manufacturers' offline market expansion, as well as user interaction and experience services. Third, the epidemic is only a variable, but for invariants, home appliance manufacturers need to establish a new business logic and system to cope with the challenge of such external cyclical environmental factors.


Third, retail channel fragmentation is fast and much.

In recent years, the fragmentation of home appliance channels has intensified, with a large number of live broadcast goods, community goods, and even content goods emerging in endlessly. Behind this is the result of the common changes of the two trends: first, as a standardized product, household appliances are also household necessities, the threshold of professional retail and service is reduced, and the socialized large-scale service and logistics system can be fully supported, so that more people can enter the household appliance sales system; Second, the user's demand for home appliances presents multi-level and multi-form changes. Insight needs to provide good products and good services, strive to follow the steps of users, and finally achieve new leadership and breakthrough. But the difficulty is great.


Fourth, a balance between survival and high-quality development.

In the continuous and changeable market environment, many home appliance enterprises are now facing mature industry, changeable demand, and no rule of accident, but also facing the most intuitive challenge, that is, how to coordinate and get through the basic survival of large-scale and high-quality development of product structure transformation, business model trial and error. Because of the scale of the survival of the basic plate, must be reduced to let profit grab sales; And high quality development, but also to push up the sale of refined profits, set of whole house landing in advance, must go up. Live and high quality alive, for many manufacturers is a big issue.


Survival and development are not static issues in any industry. For home appliance manufacturers, it is a difficult problem to crack in the development. At present, some head enterprises to give the solution is actually very simple, is the balanced layout of many brands, the whole category, both to grab the scale of basic plate, but also to strive for profits to improve the quality of business. However, for many small and medium-sized enterprises, they must make a new choice, whether to maintain the overall scale of hard stick, or do differentiation and characteristics of the landing, can not have both.


Appliance&electronics World Expo (AWE) adheres to innovation and change, and has achieved continuous breakthroughs in scale, quality and global influence. It is one of the three top home appliances and consumer Electronics exhibitions in the world. For more information on the exhibition, welcome to the site of AWE 2022.