After the outbreak of the new crown pneumonia epidemic, it has brought a direct impact on the home appliance industry, which is mainly manifested in the blocked production activities of the industry, sluggish logistics, sharp decline in home appliance consumption (especially in the offline market), and the stability of the supply chain in the short term. pose a certain threat. Due to the impact of the epidemic, the 2022 China Home Appliances and Consumer Electronics Expo AWE2022, which was originally scheduled to be held on March 17-20, 2022, will be postponed. If there is any new progress, further notice will be given.
Eat the "long tail" market.
In fact, whether it is "creative small home appliances" or "Internet celebrity small home appliances", these emerging small home appliance enterprises are concerned about a field that has long been ignored by the mainstream market -- the long tail home appliance market. The market is characterized by a focus on multiple categories, each of which may seem small at first glance, but together they can generate significant sales. The long tail market usually solves the needs of a relatively small group of consumers and has a broad range of value trade-offs. Although there are some popular products, the whole market does not have the attributes of family demand.
The above characteristics also cause the market volatility of relevant enterprises to increase.
Although creative small household appliance enterprises said that they would increase the development of new products and increase prices to hedge against adverse factors, but in the overall decline in the situation of terminal demand, product price space is also relatively limited. In fact, the product under the enterprise of creative small home appliances is observed, and the big reason for its selling like hot cakes still depends on price choice.
Marketing costs and traffic conversion.
As non-demand small household appliances, creative small household appliances or Internet celebrity small household appliances can not create "explosive style" without consumption "planting grass", so as to broaden their awareness and form a certain "trend". In a sense, the rise of social e-commerce and live streaming goods and other emerging channels provide "soil" for the rapid growth of creative small household appliances. However, with the fragmentation of traffic on various platforms and the increasing difficulty of obtaining traffic resources, platform costs have been rising, which undoubtedly increases the marketing costs of various brands. In order to maintain the brand heat and create a popular style, enterprises need to continue to invest in marketing costs, but this investment can bring potential flow and flow into sales, are unknown.
For creative small household appliance enterprises, there is a fatal weakness, that is, the technical moat is not high enough, remove the brand trademark, many products look exactly the same, the function is more similar, there are obvious deficiencies in the basic performance improvement, when the product differentiation is erased, the market will often fall into the mire of low price competition. In terms of revenue and net profit alone, the performance of Xinbao and Xiong Xiong is not bad, but the market capital is still flowing out, which to some extent shows that capital's expectation of creative small household appliances market is weakening. In fact, as more and more creative small household appliances enter Chinese families, complaints about the quality of their products are increasing day by day. In addition, idle products and lack of after-sales service are also problems that need to be overcome on the growth road of creative small household appliances.
In the process of communication with distributors, channel personnel to the national grid provides a train of thought, namely how to make consumers feel their buying small home appliance product content is worth somewhat, "bread machine or the wall, for example, we will regularly to push some custom menu to the customers bought the product, frequency need not too high, otherwise the user will be regarded as spam, the menu also don't send too many at a time, Ideally, it fits into everyday life. This will increase the stickiness of the channel and users, making users feel valued; At the same time, they will be interested in trying out new menus and reusing small appliances that may have been left unused to create value attributes." In addition to meeting functional needs, creative small appliances have a lot of room for improvement in user experience. At present, most creative small household appliance enterprises still rely on marketing, the brand often can be "red" for a while. In order for the brand to develop further in the future, it is the only way to build up the core loyal user group. At this time, the hidden competitiveness of the enterprise such as research and development ability and quality strength must be made up, which is the same for the big brands and the emerging brands.
About ten years ago, the Chinese Household Electrical Appliances Association made a statistics, at that time in Europe and the United States household appliances in the possession of more than 30 pieces of electricity, in addition to ice washing and emptying, or all kinds of small appliances occupy the majority; At that time, the average number of household appliances in China was less than 10. With the improvement of residents' income level, functional small household appliances will gradually fill our lives. The explosion of emerging household appliances is the epitome of this trend into reality. With an average household holding of more than 30 household appliances, we still have great growth potential. How enterprises hone themselves to create easy-to-use, durable and word-of-mouth innovative small household appliances is of vital interest to both consumers and enterprises themselves.
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.