Small home appliance market powerhouse said the weak will be delisted

Since the beginning of this year, due to factors such as the appreciation of the renminbi and rising production costs, the growth rate of many traditional small home appliances has slowed down, and some products have even experienced a large negative growth. Coupled with the second half of the year, it is also facing the global financial crisis, resulting in a decline in global consumer demand. At the same time, energy efficiency standards for small household appliances will soon be announced, and at least 20% of the companies will face 'survival tests' due to non-compliance, reduced profits, and lack of technology. "In the wake of this double attack from the upstream and downstream unfavorable environments, Hong Shibin, deputy director of the China Home Appliances Marketing Committee, believes that small household appliances will not only face life and death tests, but this year it will also become a watershed for small household appliances. The phenomenon of competition will be Strong people are kings, and weak people are delisted!

First of all, from the upstream product manufacturing analysis, the renminbi appreciation, labor costs and other unfavorable factors, but for large, medium and small household electrical appliance enterprises, but it is standing on the same starting line, before some small and medium-sized small household electrical appliance enterprises, can Take advantage of price to win the market. However, this year, this strategy will not be efficacious, because many of the cost increases, so that these small small household electrical appliance companies do not have advantages, and some small household electrical appliance companies of scale, but took the initiative, regardless of raw material procurement, With a certain scale of small household electrical appliance enterprises, procurement can not only reduce costs, but also allow many suppliers to reduce the risk of cooperation. Secondly, from the perspective of the labor cost, some small and medium-sized home appliance companies can use the policy to wipe the ball. The welfare protection for employees can be reduced or reduced, but now it must be the same as a large-scale enterprise. Therefore, for these reasons, small and medium-sized small home appliance companies have no competitive advantage.

Second, from the analysis of consumer demand in the downstream market, facing the global economic crisis, the demand for products will be severely reduced. At this time, the small household appliance companies consider the issue of cakes under the condition of a small cake. For this reason, under the premise of this sub-cake, small and medium-sized small home appliance companies must compete with small-scale home appliance enterprises with scale in the market, and they will be far from each other in the value chain of various companies, because whether it is from marketing Means, product technology, channels and terminal outlets, etc., small and medium-sized small household electrical appliance enterprises will be vulnerable, so this will be a fatal blow for small and medium-sized small household electrical appliance companies, will inevitably cause some small and medium-sized small household electrical appliance enterprises to face the risk of elimination!

In addition, from the perspective of business operations, compared to color TV, air conditioning and other major appliances industry, the ability of small household appliances industry to resist risks is obviously insufficient, because the entry threshold of small household appliances industry is low, so many small household appliances capital chain is not very well-off In the face of this kind of monetary tightening and poor market sales, once the capital chain has problems, the wages cannot be paid out, and the supplier’s payment cannot be honored in time. Some small household electrical appliance companies that are not in size will face a crash. risks of.

In summary, no matter whether it is from upstream manufacturing or downstream consumer demand, small and medium-sized small household appliances companies will face the test of life and death because, under such harsh environment competition, enterprises not only fight for financial strength, but also have technical strength. Marketing strength, management ability, risk control ability and so on. To this end, this year and next year will inevitably present a double world of small household appliances, it will be sunny days, but will come to face the risk of delisting!