Urbanization promotes the new layout of home appliance industry

In the past decade, along with the marked acceleration of the urbanization process in China, the urbanization rate has increased by an average of about 1% per year, and exceeded 50% for the first time in October 2011.

Professionals predict that by 2020, China's urbanization level will reach 62%, and the new urbanization construction will greatly promote the profound changes in the home appliance channel market, and will become the basic point of policy to promote the sustainable development of the home appliance industry. In this macro context, the home appliance battlefield also began to extend downwards and penetrate.

New urbanization brings huge business opportunities to the home appliance industry
The National Bureau of Statistics predicts that every 1 percentage point increase in the urbanization rate in China will drive 7 trillion yuan in market demand. Specific to the home appliance industry, in the next eight years due to urbanization, the rural market will accumulatively increase the sales of new appliances by 4.5 trillion yuan, and the accumulated sales will exceed 9 trillion yuan. With the urbanization construction comes the income level of the people. Promote.

In the context of the saturation of the 1st and 2nd markets, the president of Sino Excelsle even Siqing believes that the continuous increase in the volume of household appliances in the 3rd or 4th level will become the main growth engine for the development of the household appliance industry. In the context of the overall negative growth of the home appliance industry, the performance of the rural home appliance market is particularly eye-catching. According to China Yikang monitoring data, the scale of urban home appliance market in 2012 decreased by 7.6% year-on-year, and the rural household appliance market increased by 3.7%. Take the television industry as an example. In 2012, the rural market surpassed the urban market for the first time, accounting for more than 50% of the scale.

Appliance manufacturers accelerate channel sinking
According to statistics, at present, rural households in China account for 67.6% of the total households. However, the household ownership of household appliances such as ice, wash, air, and color appliances in rural areas lags far behind that of cities.

According to Yang Jun, general manager of Changhong Air Conditioning Marketing Co., Changhong Group had sales of about 25 billion yuan in the rural market last year, accounting for about 30% of the business. However, air-conditioning is still less than 10% of the rural market, and there is still much room for growth in the future.

According to reports, Changhong has established a channel for Changhong Meiling stores in the 3rd and 4th level markets, and it has built more than 6000 parents Hong Meiling stores by the end of last year. At the same time, Midea, Haier and other companies started to lay out in the 3rd and 4th markets early on. This year, Midea Electric Appliances has launched a nationwide “1000 County Line” roadshow. As a leading domestic appliance company, Midea is very optimistic about the huge growth potential of the 3rd and 4th markets.

In addition to domestic brands, foreign brands also invariably carry out channel adjustments in order to sink the product. As early as 2009, Electrolux granted air conditioner brand sales rights to chain stores. In 2011, Mitsubishi Heavy Industries also announced that it would adjust its sales channels in China and chose large-scale home appliance chain stores as underwriters for its chain channels. Panasonic has already moved to the 3rd and 4th markets since 2011 and has started to build specialty stores. In March this year, LG announced that it will expand its sales channels through cooperation with brand operators, "killing" the air-conditioning market, and focusing on the three or four markets.

Competition in the Third and Fourth Level Markets to "Two High" Development

The rapid expansion of the tertiary markets has also shown obvious features. First, the expansion of body mass, the second is the improvement of the income level of the new citizens, and the third is the improvement of brand awareness. Some analysts believe that in recent years, the "two highs" trend in the household appliance market in the 3rd and 4th grades has become apparent, namely, the brand concentration has increased and the share of high-end and high-end brands has risen. With the further advancement of urbanization, this trend will become more apparent.

According to expert analysis, facing a new round of competition, home appliance manufacturing companies need to develop innovative high-energy-saving products, change sales models, and innovate business models in order to conform to development and gain revenue in the future competitive landscape.