Now, the biggest pressure in the frontline home appliance market is crystal clear: not knowing what to do, not knowing how to proceed. What methods are effective, what strategies are ineffective, all need to be tested, explored, and implemented. There are no clear answers, only endless confusion.
By Yang Jia
What exactly lies ahead in the market, how consumer behavior will evolve, most home appliance professionals are uncertain.
The reasons are evident. In the eyes of the home appliance industry, the biggest issue is that the experience accumulated by home appliance manufacturers in the frontline market over the past 30 or 40 years is inadequate to meet current market and consumer demands. Moreover, the vast resources and capabilities accumulated by numerous home appliance manufacturers are at a loss on which directions to focus and ignite.
For the upcoming competition in the home appliance market in the next six months, the home appliance industry has a few cold reflections for consideration:
Firstly, the overall trend in the frontline market, retail and engineering market demands will not show significant recovery or improvement, and may even experience a further downturn. All home appliance manufacturers should not have high expectations for certain policies, nor should they have more associations with the revival of some related industries. It is crucial to maintain the financial chain, manage cash flow, control production output and inventory ratio, and find a new balance between profit and loss.
In the home appliance market, for all operators and competitors, the time has come to compete based on endurance, physical strength, and resilience to cold. Some market orders and consumer demands cannot be harvested by desperate competition; some customers cannot be won over by ultra-low prices. In a realm where traffic is king, shipments are paramount, and growth is fundamental, it may seem uncompetitive and hopeless without seizing opportunities. However, things will turn around eventually. Sometimes, manufacturers may gain higher value and more rewards by not engaging in fierce competition but rather by "fighting, reviewing, waiting, and contemplating" simultaneously, awaiting the arrival of a new turning point.
Secondly, the competition among major home appliance enterprises will intensify, becoming more fierce and inward-looking. The essence of commercial competition is a "survival of the fittest" scenario, which is not a new concept. Especially in a mature industry with a slowing growth market, the survival of large enterprises necessitates seizing more market share and cake. This implies that the development outcomes of many home appliance enterprises in the future will be either "advance or retreat" and "slow advancement is also a retreat." Ultimately, there will be two results: either swiftly resolving chaos by eliminating weak competitors or gradually eliminating unrealistic enterprises through a gradual process.
In the battle between home appliance enterprises and retailers on the supply and demand sides, the situation in the coming year will involve scenarios where big fish eat small fish, fast fish eat slow fish, and big fish eat big fish, not just a chaotic logic but primarily a competitive one. In this market environment, the survival and hope of home appliance enterprises rely on their peers. Therefore, sometimes companies need to act swiftly, while at other times, they can afford to be slow. At this stage, keeping an eye on competitors can help avoid detours and unnecessary expenses.
Thirdly, the response of major retailers is not very optimistic, and it is crucial to avoid chaotic actions driven by blind impulses. The reshuffling of online stores and physical stores has been an ongoing process in the past 2-3 years and will undoubtedly accelerate in the future. The logic is simple: those with weak capabilities, unable to withstand competition, or lacking initiative must exit the market. The space freed up provides opportunities for some dealers to survive. This is a commercial law, not a matter of individual wishes or desires.
For the vast group of dealers, it is not the giants like JD.com, Tmall, or local home appliance chain stores that matter, but the numerous operators and dealers scattered across various markets at different levels. They must hold the line, control their desires, and refrain from engaging in unfamiliar or risky ventures. It is essential to understand that "when things go awry, there must be a reason." Having a clear understanding of one's capabilities and making money within that range is crucial, avoiding speculative ventures and expansions beyond one's capabilities.
Lastly, unexpected incidents affecting the dominant market and consumer behavior will occur frequently and worsen. Among these, the most significant unpredictability is the weather, as extreme heat or a cool summer can drive demand for certain home appliance categories while suppressing overall consumer needs. Many unexpected events will test the resilience and speed of all companies. However, policies such as home appliance financial subsidies are unlikely to materialize, so it's best not to harbor such dreams.
Regardless of whether it is enterprises or retailers, the focus in the future should be on precise management, investment, and sustainability. Firstly, companies should focus on their products, ensuring a balance between price competitiveness, quality, and profitability. Secondly, channel expansion should not be blind; it is essential to prioritize and collaborate with like-minded partners to mitigate risks. Lastly, market strategies should prioritize sustainability over impulsive actions.
For all those in the home appliance industry, excessive anxiety or blind optimism is unwarranted. The home appliance sector's development will maintain a certain inertia and momentum, with market dynamics and consumer demands evolving. However, the fierce commercial battles among enterprises and the competitive struggles between channels will remain unavoidable challenges.
Copyright Notice: Original article from the home appliance industry, reproduction without authorization is strictly prohibited.
Declaration: Personal original content, for reference only.
