Chinese washing machine market prospects

The Chinese washing machine manufacturer's teachers are, without exception, multinational corporations, such as Ariston and Lieutenant Haier. The technology and production lines also came to China with the installation of foreign masters. However, the foreign masters lost most of their efforts in the first round of washing machine market competition. What are the reasons?

The first is the lack of technical input for the Chinese market. Foreign brands are not lacking in technology. What they lack is an understanding of the Chinese market. Most of the foreign brands have production bases in China, but they do not set up R&D centers in China. Naturally, they will not take the initiative to launch products that are particularly suited to the individual needs of the Chinese people. The first factor that Chinese consumers consider when buying a washing machine is price (30%), followed by popularity (23%) and quality (20%).

The second reason is that the management model is not localized. This can be seen in the Whirlpool joint venture daffodils, the failure of Snowflake and the failure of Mattel's military defeat Rongshida. China is still a developing country, eager for advanced concepts, but there is also a digestion process. Since the beginning of 2003, the foreign brands have made a renewed effort. They have chosen a very good offensive opportunity—the domestic brands have been dragged down by years of price wars, blindly pursued quantity expansion, and faced a market failure due to product cost concentration. The foreign brand's offensive measures have also become very Chinese, and the price show has become skillful.

The price is just a cut-in approach, and there are other ways to maintain or expand market share in the long term. The commonly used method of foreign brands is to shorten the product life cycle and increase the value of single products and new product profits. They have changed the order in which products are placed in the global market and further shortened the time-to-market gap between Chinese and European and American markets. Afterwards, multinational corporations also promoted R&D of “globalization + localization” in a timely manner, which not only made the products more adaptable to the needs of local people, but also enabled foreign brands to maintain their technologically advanced advantages. After Matsushita's R&D center was moved to Hangzhou, the annual elimination rate of its products was increased from the previous 50% to 90% in 2004, and it has achieved global simultaneous listing.