Appliance companies use electricity providers to break through

The quarterly reports of listed companies in the household appliance industry have been released one after another. The report shows that operating income fell from 15.2% at the end of last year to 9.2%. The industry is not booming, and some products are not selling well. The overall growth rate of performance is showing a downward trend. The industry is facing a transformation. The huge pressure of upgrading.

Household appliance companies' overall performance in the first quarter was weak

From the perspective of the overall industry data, except for the slight increase in the sales volume of China's refrigerator market, other industries opened in 2014 and encountered cold weather, and the market performance was not satisfactory. Suning Yun’s first-quarter financial report showed that both revenue and profits suffered from Waterloo, which recorded a revenue of 22.869 billion yuan in the first quarter, a year-on-year decrease of 15.93%, and an operating profit loss of 590 million yuan, a decrease of 206.25% from the same period last year.

From the financial reports disclosed by home appliance listed companies, with the exception of Midea’s quarterly revenue and profit across the board, Konka, TCL, Skyworth, Changhong and other well-known home appliance companies suffered declines in revenue and gross margins. Among them, Changhong's quarterly report shows that the net profit attributable to shareholders of listed companies decreased by 93.75% year-on-year.

Insiders pointed out that the weak home appliance industry is mainly based on the following four reasons:

First, the policy of saving energy and benefiting people has exited the market. National policy subsidies for the stimulation of the home appliance industry is considerable, before the suspension of home appliances to the countryside, has also had a big impact on the home appliance industry. This time, the policy dividend on energy-saving subsidies has disappeared, which has also had a negative impact on the growth rate of the household appliance industry.

Second, the real estate market is in a weak market. The demand for consumers to replace their home appliances largely comes from buying houses. The real estate market has an important influence on the home appliance industry and can be considered as a barometer for the home appliance market. The decline in real estate transactions in the first quarter was a bad news for home appliance companies.

Third, the impact of the Internet on consumer buying patterns. Since the massive cross-border of Internet companies in 2013, the home appliance industry has undergone disruptive changes. Today, Internet-related topics such as e-commerce models and internet thinking are hot topics within the home appliance industry. Judging from the performance of the quarterly report, the beauty of actively embracing the Internet has actually tasted the sweetness. The first-quarter earnings report may accelerate the pace of “net surfing” by home appliance companies.

Fourth, changes in the implementation of new energy efficiency standards. Since October 2013, five categories of household electrical appliances such as inverter air conditioners have begun to implement new energy efficiency standards. High-energy-consuming products are facing the embarrassment of delisting. Household appliance companies have to sell inventory products at low prices and innovate production lines. These actions will undoubtedly affect enterprises. The impact of the performance.

Appliance companies aim at leveraging online e-commerce "breakouts"

The results of the quarterly report “changed face”, which caused many home appliance companies to look for new performance growth points. Insiders pointed out that the current home appliance industry is facing changes, so that the competition between enterprises has become more intense, home appliance companies in order to obtain impressive performance, you first need to understand the real needs of users.

At present, the home appliance market is facing changes. The young people who pay attention to the quality of life have gradually become the main force of consumers in the color TV market. Energy-saving and environmental protection functions have begun to attract people's attention. Consumers are more inclined to purchase green, smart, and well-designed home appliances.

Among the many changes, the most embarrassing aspect for home appliance companies is the impact of Internet e-commerce.

The proportion of sales of sales channels of home appliances that have been glorious in the past has been shrinking. Today, e-commerce has gradually become an important channel for home appliance sales.

Relevant statistics show that in the first quarter of this year, the total retail sales of consumer goods reached 620.81 billion yuan, of which online retail sales was 81.5 billion yuan, a year-on-year increase of 51.7%. During the May 1st this year, the color TV's online market retail market performed significantly better than offline channels.

The good market performance of online e-commerce has attracted many home appliance companies. At present, more and more home appliance companies have started to jointly launch new products and sales.

Last month, Changhong and JD.com launched a new version of Oboni TV. Not long ago, the 12 production lines of 10 brands including Midea, Joyoung, Supor, and Emmett had just reached an “underwriting custom” cooperation with Tmall. On May 13, Galanz and JD.com released a smart home appliance with the exclusive UU series of Internet brands.

On the road of transformation and upgrading of home appliance companies, leveraging the e-commerce platform to “break through” seems to have become the mainstream trend of corporate marketing.