The most challenging moment in the home appliance market is about to arrive. Similarly, this is also a time of great harvest for some home appliance manufacturers in terms of market competition and business competition. Next, for home appliance companies, it is urgent to address three issues, but the core is to make all market participants understand the trends and truths of the market.
By Chang Wei
Your pain may be someone else's joy. The downward trend of the home appliance market has not stopped, and there is still more time and means needed to activate existing consumption. The internal competition among manufacturers has exceeded expectations from all sectors, and the competitive landscape has become fiercely contested...
Since 2024, the Chinese home appliance market has been presenting a development situation where "one side is the sea and the other side is fire," but this is only the joy of a few manufacturers, built upon the pain and anxiety of many others. This marks the beginning of a new round of industry reshuffling.
In the eyes of many home appliance manufacturers, the market structure and trends in 2024 present a "worst of times" test, with numerous variables and challenges emerging constantly. However, for a few home appliance manufacturers, 2024 is seen as the "best of times" opportunity. Whether it's the best or the worst, in the home appliance industry's view, the next step for home appliance companies in market competition and industry activation is to focus on solving three key issues, involving multiple dimensions such as market management, empowering merchants, and activating users.
Firstly, companies' market management must be additive, not subtractive. Because only by managing the market well can the enthusiasm and fighting spirit of different merchants be stimulated. Currently, under the trend of continuous fragmentation in home appliance channels, various phenomena such as channel chaos, price fluctuations, and smuggling of goods are rampant, increasing the difficulty of market operation management for home appliance companies. This requires home appliance companies to strengthen the details of market management and close the loop of the chain.
In addition to guiding the operational behavior of authorized distributors, home appliance companies' market management should also regulate and rectify the smuggling and price chaos of unauthorized distributors, truly allowing competition in the home appliance market to take place in a relatively fair environment. Merchants should not only focus on price competition but also on upgrading competition methods in terms of products, marketing, and services.
Secondly, it is more important and crucial for manufacturers to work together to activate merchants than to activate users. Only by empowering merchants fully can precise market competition and deep business cultivation be achieved in frontline markets. Currently, the home appliance market is undergoing a transformative change driven by a dual-directional shift in business models and consumer demands. The means, concepts, and models of market competition and user management have been completely differentiated. As the closest to users, merchants should be the first group of proactive business people driven by home appliance companies and major merchants. Only by continuously changing merchants' business concepts and methods can the new vitality and fighting spirit of the entire market be stimulated.
Of course, empowering merchants for home appliance companies should not only involve giving fish (special price machines, promotional policies, subsidies, etc.) but also providing skills and strategies (methods, means, concepts, and specific operational strategies). Currently, many home appliance companies have been promoting merchant empowerment, especially through online and offline training courses, business meetings, regular communication with marketing personnel, as well as sharing and recommending excellent merchant cases, driving the transformation momentum and initiative of another group of merchants through a group of outstanding merchants.
Thirdly, home appliance manufacturers must continuously stay close to users to become users' trusted friends in order to maximize the value of managing users. Currently, all manufacturers are clear that only by fully mastering the means and methods of "managing users" can they find the way and means to the future. Users are the only challenge and the only key. The awkward reality is that whether it is a home appliance company or a home appliance distributor, some are far from users, some are far from users' hearts, and some are far from users' recognition.
Managing users is definitely not just a "future trend" but the direction, means, and path of reality. Simply put, it is about quickly getting close to users after finding them, finding insights and guiding the path and means of user demand through getting close to users. Simply put, it is through continuous interaction with users and constantly providing services to users that home appliance manufacturers can shift from selling products to earning profits through services. In this process, home appliance manufacturers can avoid direct product price competition in frontline markets and instead find differentiated profit means through the system capabilities of product design, installation, construction, and services.
Facing a round of fierce competition in the terminal market peak season that has already begun, home appliance companies carry the hopes of upstream suppliers and the dreams of downstream distributors and service providers. They must grasp the ability and courage to "turn the tide" at critical moments, open up new paths in the face of challenges, and build bridges over troubled waters, never retreating at any time.
Copyright Statement: Original article from the home appliance industry, unauthorized reproduction is strictly prohibited.
Declaration: Personal original work, for reference only.
