Analysis on the Development Status of China's Household Appliance Industry in 2012

Layoffs, fraudulent subsidies, reduced exports, declining performance, and the appliance industry seems to be entering the winter night.

From January to June 2012, the total exports of home appliance products reached US$42.6 billion, a year-on-year decrease of 3.5%.

According to the mid-year report of major home appliances companies, the performance of home appliance product lines has generally declined, and the "winter" of home appliances has been confirmed on the sales data.

57 listed companies in the household appliances industry achieved a total operating revenue of 259.332 billion yuan, a decrease of 5.12% year-on-year.

From Internet TV in 2009 to 3D TV in 2010, to smart TV and cloud TV in 2011, China's color TV industry has thrown out four concepts in three years, but it is still not recognized by its peers.

From the "Home Appliances to the Countryside" in 2007 to the "Old-for-News" in 2009 to the "Energy Saving Subsidy" of this year, the appliance industry has received a lot of attention from policies in the past five years. However, over the past five years, in addition to causing excess capacity and overdrawing future consumption, it has also caused companies to fall into the “credit” crisis.

Due to the lack of channels and platform advantages, home appliance companies are subject to people everywhere. From the home appliance chain stores during the United States and the Soviet Union to the hegemony, the three countries to the Soviet Union and the United States in the field of e-commerce in the past 10 years, household electrical appliance enterprises were abducted twice, unfortunately become a victim of changes in business models.

Brands and technology lag behind Japan and South Korea, and policies frequently intervene. Channels and platforms are subject to Jing Mei Su, and the home appliance industry is deeply lost in development.

Three years of speculation four "concepts"

China has now become a veritable home appliance production center in the world.

TV products account for 80% of global production capacity, air conditioner products account for 70% of world production capacity, refrigerator products account for 50% of world production capacity, washing machine products account for 40% of world production capacity, and most of the small household electrical appliances account for more than 80% of The production capacity is also in China.

But this is only false prosperity.

Although the company is one of the largest manufacturers in the manufacturing industry and claims to be the "most marketable and most competitive industry in China," there is a clear gap between Chinese companies and Japan in terms of brand and technology.

This drawback is even more remarkable in the TV industry.

In 2011, Samsung sold 46 million flat panel TVs (LCDs) worldwide, accounting for about 20% of the global market. The market share exceeds the sum of Hisense, TCL, Skyworth and Changhong TV companies.

In the domestic market, the average price of China's color TV is lower than that of international brands by about 30%. In the international market, China's export TV is still dominated by low-end products, even a large proportion of CRT TVs that have been eliminated. Exports are still based on OEMs and ODMs, and there are few independent brands.

In the field of technology, from LCD liquid crystals, LED liquid crystals, to 3D TVs, smart TVs, all are invented by international companies, and Chinese companies have always played the role of followers.

All of the above, all highlight the Chinese color TV industry is not strong.