Most home appliance manufacturers won't wait until the mid-year 618 promotion to stimulate the purchasing power of consumers! A fierce battle in the home appliance market in May is inevitable, with price wars certain to occur, but it's definitely not just about low prices.
By Ning Yan
A commercial battle in the home appliance industry is now unavoidable!
However, at this stage, the home appliance sector cannot fully confirm how long the May business battle in the home appliance market will last, how crazy the prices will get, how intense the promotions will be, and how fierce the competition will be.
Why is the commercial battle in the home appliance industry this year inevitable? The reason is simple: by late April, consumer demand for home appliances in first-tier markets across the country has been slow to pick up and recover. Meanwhile, factories and channel inventories of various manufacturers, as well as operating costs, remain high. In addition, the downstream consumer market has not seen a significant increase in demand. If this situation persists, the entire industry will face a serious "intestinal obstruction" in the future, and may even spread to a "blocked lake" scenario.
Consumer spending remained weak in April, lacking momentum
As the competition in the market in April is coming to a close, and with the Golden Week holiday in May kicking off, many home appliance manufacturers have indicated to the industry that a fierce battle will take place in the home appliance market in May this year, as many manufacturers can no longer wait until the mid-year 618 promotion.
If they don't act now, some manufacturers are concerned that they won't be able to continue the next phase of channel payments and inventory pressure. The entire market operation and competition will be at a temporary standstill and chaos. The inventories of most businesses have reached historic highs.
Several industry insiders have confirmed to the home appliance industry that after experiencing the normalization of consumer trends at the beginning of February and the lack of rebound in consumer spending in March and April, facing challenges such as rising operating costs, increasing inventories, and competitive pressures, home appliance manufacturers can only choose to "go all out" and compete aggressively.
By waiting and observing, external market demand will not naturally rebound and increase with time. Many home appliance manufacturers can only rely on their proactive initiatives, stimulation, and aggressive competition to have hope and opportunities for breakthroughs.
What are manufacturers really competing for in the May battle?
So, what is the core content of this fierce battle in the home appliance market in May? Is it just another round of price wars, or will new content and methods emerge?
In the home appliance industry's view, this commercial battle in the home appliance market is not about chaotic and low product prices, but about the extent and strength of the resource investment by major manufacturers competing in first-tier markets, as well as the determination and attitude of these major manufacturers in initiating this round of commercial warfare.
Firstly, the commercial competition in the home appliance market will definitely involve significant price concessions and discounts. However, it's not the small and medium-sized enterprises initiating price wars, but the leading home appliance companies and merchants who will kick off a price war through proactive concessions. Specifically, under this year's market theme of "trade-in for new," relevant manufacturers should provide precise concessions to users with actual purchasing needs, and these concessions should be substantial. The market will not see a repeat of the past widespread crazy price cuts from factory prices to retail prices, but for users trading in old appliances for new ones, they will receive greater subsidies, ensuring that the subsidy amount reaches the users directly.
Secondly, the core goal of the market battle in the home appliance industry is not to lower prices, sacrifice profits, or grab attention, but to squeeze the market survival space of competitors, even eliminating a batch of speculative or small and medium-sized manufacturers, implementing a "clearing out the old to bring in the new" strategy in the market, and ultimately effectively seizing limited incremental and existing users. Therefore, a large number of small and medium-sized manufacturers will find it very difficult in the future, as the squeezing of competitors is an inevitable trend, and it will not be just a temporary guerrilla warfare, but a long-term trench warfare.
Furthermore, for the home appliance market, although the outside world has been trying to stimulate the demand for trading in old appliances for new ones to achieve a volume increase across the industry and maintain the development situation, the reality is that activating the existing market will take time and space, and it is impossible to go against commercial and market laws. Therefore, at least for this year, the operational logic of a group of large and medium-sized home appliance manufacturers will be to raise the industry's competitive threshold, enrich competitive means, increase competitive complexity, and thus achieve reshuffling and reconstruction through market-oriented means. Therefore, this round of business warfare will not end in just a few months but will continue.
Ultimately, for this May's home appliance business battle, some will be pleased while others will be worried. Strong home appliance manufacturers can no longer wait and watch, but must dare to take action and launch an active offensive at a critical moment.
Copyright Statement: Original article from the home appliance industry, unauthorized reproduction is strictly prohibited
Declaration: Personal original work, for reference only
