Under the Normal State of Low Growth, Household Appliance Enterprises Should Adjust Their Competition Focus
The problems existing in current Chinese household appliance market are not something that can be solved by a series of measures such as keeping the confidence of companies, inspiring the enthusiasm of businesses, and giving policies that can facilitate the market. The only way out is to clearly understand the development process of the industry,
clarify the trend of future, and firm the pace of industrial transformation.
When the low growth of the market has become a normal state, for many household appliance companies, it will be inevitable to adjust the focus of business competition.
To put it bluntly, after the adjustment, the direction of the household appliance market is clear. The problem is that many businesses in this market do miss the past, on the other hand, they are terrified of future.
1
FIRST
Firstly, we must give up any illusions about high market growth or large-scale growth. Respect must be given to business laws. We shall abide by the market rules, and recognize the facts and truth. However, the status and value of household appliance in the Chinese market cannot be denied and bearish in the future which are already not just “commodities” or “items”. Lifestyles, philosophies and pursuits of Chinese families have been integrated into this industry, which have become indispensable symbols and marks of the household appliance market.
2
SECOND
The second is to return to a benign industrial management track, by doing a good job in product research and development, managing customer needs well, both of which are basics of business. A great business journey of a thousand miles begins with a single step. Believe in "no pain, no gain", "the power of brand", "the power of technology", and "the value of service". The trillion-dollar valued market of the household appliance will not shrink, but will only become more stable. However, the barriers to entry, the means of competition, and the quantity of brands and retailers in the industry will change. The requirement for brands today is not only to become bigger and stronger, but also to have their own characteristics. Only "multi-skilled" companies can finally go long and go far.
3
THIRD
Third, the external economic environment, the internal industry environment, and the business order between enterprises are all in turbulent changes. The short-term operating difficulties of the market do exist, and the staged slump in consumer demand is indisputable, but there is no need to doubt the space and opportunities of the industry in the coming future. At present, all businesses in household appliance market should not lose confidence because of the temporary difficulties, nor should they be swayed by staged speculation or even give up the bottom-line principle. We shall firm our belief and never forget the original intention.
Then, what are the ways for household appliance companies to adjust their focus, direction and strategy of competition? Although companies and businesses have different positions and perspectives, their goals are the same. How to achieve a coordinated development?
01
One is to maintain three beliefs: believe in the value of the brand, believe in the competitiveness of good products, and believe that user cultivation will have continuous returns. Choose excellent brands as partners, avoid being entangled in the gains and losses of a short schedule, jointly explore more possibilities in the market. In the future, mainstream consumption of household appliance must be diversified and branded. A good product will surely win the hearts of users. It is very important to show the performance and using experience of the product to more customers. A qualified users cultivation can integrate products and services well, connecting the common resources of enterprises and merchants.
02
Second, don’t be entangled in temporary market ups and downs, don’t care about temporary market chaos and business difficulties, and don’t get lost in “finding a way but never walking on foot”. Today, both household appliance companies and dealers have a feeling that the business is difficult to do. On the one hand, enterprises are faced with the pressure of rising operating costs such as raw materials; and on the other hand, they are also faced with the chaos of retail prices which continues. It’s a "dilemma". Merchants have to face the fragmented retail channels, especially the price war brought about by multiple brands and different products which aims at a large number of sinking channels. These difficulties and challenges do exist, but they are dynamic. We must get rid of such emotional distractions.
03
The third is to continue to accelerate the pace of business transformation, especially to find space and possibilities from existing users and commercial appliances clients. Existing users expansion is an old topic, which is a right direction, as well as a hard bone to crack. We must unswervingly do a good job in the service of old customers. At the same time, commercial appliances clients are also worthy of continuous investment and digging.