China's home appliance channel ushered in new growth

China's home appliance channel ushered in new growth

Channel diversification, product differentiation, simplification of shopping patterns, and optimization of consumer experience have become bright spots for future channel development. And around these bright spots, no matter the traditional chain channel and distributor channel, or the emerging e-commerce channel, transformation and reform are taking place.

In order to deeply understand and discuss the direction and characteristics of domestic home appliance channel reforms, China Household Electrical Appliances Association and Avid, an authoritative consultancy, are co-sponsored by AO Smith. The “2014 China Household Appliance Industry Channel Business Conference and 'Aiplan' The award ceremony will be held on March 19 at the Himalayan Hotel in Shanghai.

The channel business conference has invited nearly 400 representatives from government agencies, research institutes, industry associations, home appliance manufacturers, and traditional large chain, regional appliance chain, professional dealers, commercial supermarkets, e-commerce and other types of home appliance channel providers. . Ms. Jiang Feng, Chairman of the China Household Electrical Appliances Association, Ms. Gao Sumei, Deputy Director of the Operational Monitoring Coordination Bureau of the Ministry of Industry and Information Technology, Wang Xiaoguang, a well-known economist, Ding Wei, President of AO Smith (China), and AVC Chairman Yu Liangxing, Secretary-General of China O2O Conference / Director of Retail Research Center, Fudan University, Han Mei, Vice President of M&C China Limited, Mu Gang, Chairman of Jiangsu Huiyin Electric, Cao Kuanping, General Manager of Riri Shun, Li Huagang, General Manager of Xinglong Family, Wang Xidong, Hefei Mr. Zhang Rongzhong, president of Rongshida Sanyo Electric Co., Ltd., Sun Liming, vice president of Fanta Group, Hu Hongwei, general manager of Chongbai Group, Zhang Xin, general manager of Ginza Electric, Yu Weibao, vice president of Auma Electric, editor-in-chief of China National Grid, Lu Shenghua, and other guests. The conference aims to take the opportunity of the China Home Appliances Expo to discuss the transformation and reform of the home appliance channel in the new historical period, and to guide the home appliance channel to become more integrated, specialized and networked.

Consumption tends to become the driving force for traction channel change

The change in consumer demand is the driving force for channel change. This year's channel trader conference first focused on the changes in consumer demand and focused attention. Household appliance companies can no longer view consumer groups and their needs in the past with simple high, medium and low levels. When the influence brought by the Internet has penetrated into all areas of people's lives from past work areas, an interactive, experiential demand has arisen at random.

Some consumer groups with strong purchasing power attach great importance to the quality experience. They understand the brand and understand what they want. They do not need the concept of the vendor to sell, but require high-quality services and experience. This leads to the need to provide superior services in all aspects of product display, functional experience, and shopping experience.

E-commerce companies that have a large impact on the channel structure are also undergoing significant changes around new consumer demand. Yu Liangxing, the CEO of AVC Consulting, believes that online shopping groups pay the most attention to experience and experience. They will have the most direct experience in all aspects of online shopping, eventually forming favorable comments and bad reviews, and directly affecting late-stage sales. For example, a home appliance has a high rate of recent bad reviews. In the future, it may have a direct decline in sales. If the company can improve the corresponding links and increase the favorable rate, sales will increase significantly.

The e-commerce channel has also undergone a series of changes in the characteristics of such consumer demand. For example, e-shopping experience in various links such as after-sales services, payment methods, and logistics and distribution will satisfy the consumption characteristics of this channel, increase user stickiness, and ultimately promote sales growth. .

As a whole, we can sum up the common characteristics of the above two kinds of consumer demand characteristics, namely, the consumption tends to be excellent. No matter what kind of consumer groups, they all want to experience and experience the best service from the channel. At present, the main force of consumption will grow in the future, and any channel cannot ignore the change in demand. This has become the driving force for the change of the traction channel.

Online and offline integration

Last year, the O2O model was first proposed by the channel and began to be practiced. The chain channels represented by Gome and Suning have explored the O2O model of online and offline integration in the transformation and transformation in recent years. They established an e-commerce platform and opened up the online and offline supply chain management system. , In addition to the integration of online and offline, the model of store business + e-commerce + retail service providers has become a new path they have opened up.

Regardless of traditional channels or emerging channels such as e-commerce, there is an identical tacit agreement on the O2O model.

In addition to Gome and Suning, regional chains in the traditional channels are also making such positive attempts. They have made contact with the Internet and launched their own official flagship stores with the help of various major e-commerce platforms to achieve online orders, offline services, and allow lines. On the offline service, but also highlights the advantages of the store in the retail.

Traditional agency channels, such as some local-level agents, are also actively trying out the O2O model. They have their own e-commerce website and have integrated distributors all over the country so that they can use the same distance as the last one kilometer. The advantages of distribution.

E-commerce companies also have different degrees of O2O models, such as Tmall and Yintai, Japan, and other daily hand-in-hand cooperation, Jingdong and Shanxi Taiyuan Tang Jiu convenience store for O2O pilot cooperation. E-commerce and traditional retailers have joined the wave of O2O transformation. The competition in the retail industry has changed from simple offline competition to double-line competition under the line.

Han Mei, Secretary-General of the China O2O Conference and director of the Center for Retail Research at Fudan University, said that the core connotation of the O2O model is to win omni-channel. Whether it is online or offline, embracing O2O will make the sales model produce subversive changes.

Urbanization Brings New Business Opportunities to Channels

In the past ten years, the process of urbanization in China has accelerated significantly, and the urbanization rate has increased by an average of about 1% per annum. In October 2011, it exceeded 50% for the first time. By 2020, the level of urbanization in China will reach 62%.

According to the forecast of the National Bureau of Statistics, a one percentage point increase in the urbanization rate in China will drive 7 trillion yuan in market demand. Jiang Feng, chairman of the China Household Electrical Appliances Association, said that by 2020, if China’s urbanization rate reaches 62%, the rural market will accumulatively increase sales of home appliances by 4.5 trillion yuan, and cumulative sales will exceed 9 trillion yuan. .

This huge incremental demand not only brings room for growth to the traditional channels. With the accelerating process of urbanization, the Internet-based lifestyle is no longer a patent of the urban community, and the scope of influence of the Internet will gradually expand. For e-commerce and other emerging channels, there is room for growth.

In this round of business opportunities, whether traditional channels or e-commerce channels, will be more tested because of new consumer demand, which includes further sinking channels, logistics, services and after-sales and other further sink. The new type of urbanization will greatly promote the profound transformation of the home appliance channel market and become the basic point of policy for boosting the sustainable development of the home appliance industry.

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