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    Appliances To The Countryside To Stimulate Or Will End &Nbsp; Enterprise Hunting Three Or Four Tier Market

    2011/4/29 9:06:00 36

    Household Appliances To The Countryside Three Or Four Tier Market

    Following the negative growth of flat-panel TV in the one or two tier market,

    Refrigerator

    Products also appeared the first negative growth after two years in the domestic market.

    The three or four level is still growing.

    market

    The campaign has started at home.


    "This is a hunting action, almost all household appliance companies are acting."

    Chen Jun, an analyst with Orville consulting, points out that home appliances go to the countryside and the stimulation of old ones.

    policy

    It will probably end by 2013. If the appliance companies fail to borrow the bonus policy for the past two years, they will definitely be in a weak position in the future competition by improving their channel layout in the three or four tier market.


    According to the data of China Yikang, the total scale of domestic appliance market reached 10758 billion yuan in 2010, and the total sales volume of the three or four level market has exceeded 50%.


    In fact, the development of the three or four tier market, almost all the black and white manufacturers are in action, with Gome and Suning as representatives of home appliance chains are actively preparing.

    This is not a new topic, but there are always new problems.


    "Enclosure" crazily


    "Last year, there were only 3 stores in the city of Jiangmen, but in the first quarter of this year there were 4 new stores."

    The responsible person of Jiangmen electric power associated company said.


    The owner of a beauty store in Jiangxia District of Wuhan revealed that the cost of decoration and design of the store was first charged by the dealer, and the United States would return it later, for example, the renovation cost of its own store was about 100 thousand.

    However, to become a beauty store, it is necessary to undertake an annual sales task, while the United States will provide a more favorable purchase price and a good sales rebate.


    "In fact, the conditions of Haier are almost the same, compared with the reputation of the United States in Wuhan."

    The store owner said.


    In fact, it can embody the intensity of the US and Haier's white power giant's rob to the three or four tier market dealers.


    Qingdao Haier (600690.SH) 2010 earnings report shows that in 2010, Haier expanded nearly 6000 Haier stores and 700 day to day franchised stores in the county-level market, and expanded 28 thousand outlets in the township level market.

    In 2011, it also plans to build 2000 new franchise stores in the country.


    Wang Jinliang, vice president of China marketing headquarters at 000527.SZ, recently revealed that by the end of March, the number of stores in the United States has expanded to 1.3, and it is expected to increase to 1.6 by the end of the year.


    However, this figure is double the number of 8000 stores in the United States in 2009.

    Compared with the more than 2000 stores in the US in 2010, the growth rate accelerated significantly.


    "In contrast, Haier, GREE and the United States and other white giants in the three or four level market expansion action is very obvious."

    Peng Yu, director of marketing of China Yikang, pointed out that in the past, there was not much demand for white power in the rural market, resulting in many blank spots in the three or four tier market.

    In the past two years, Haier and Haier represented the development of the three or four level market, which has the nature of integrating channels and restructured the three or four level market platform.


    "Plus Haier and Mei's products cover all white electricity and small household appliances, and its sales volume can fully support a store."

    Peng Yu said.


    Suning Gome's arms race


    However, the white giants such as the United States and Haier are accelerating the expansion of their own channels in the three or four tier cities, which is obviously not the situation that national appliance chains and local home appliance chains are willing to see.

    Because once the appliance manufacturers themselves grasp the channels, the right to speak on home appliance chains will greatly increase, and may change the more vulnerable position in the past.


    "This year, Gome will cover all the county-level market in Guangdong Province, so long as the county level market population is above 50 thousand, it must be covered."

    Gao Mei, general manager of Gome in Guangzhou, revealed that this year Guangzhou Gome will add 40 stores, and the number of stores will increase to 150 by the end of this year.

    In the early March, Kim Ming, President of Suning Appliance (002024.SZ), went down to Guangdong to supervise the war, claiming that 70 new stores should be added to Guangdong in the year to increase the total number of stores in Guangdong to nearly 265.

    In order to refine the market, Suning Appliance's structure in Guangdong is also divided into four parts: Guangzhou, Shenzhen, Shantou and Zhongshan.


    In the face of the national market of Dalian lock and appliance giant, the pace of development of local household appliance chain has also accelerated rapidly.


    Hunan appliance chain 000419.SZ has 37 electrical outlets in Hunan, including 14 stores in Changsha, and 19 stores in Hunan and 29 in Hunan.


    The blocking operations also took place in Anhui and Jiangsu.

    The 2010 earnings report of 01280.HK, which just listed in Hongkong, showed that by the end of 2010, there were 53 self managed stores in Anhui and Jiangsu, 26 of which were new ones last year and 227 of their franchise stores. "At present, the expansion of home power plants and chain channels in the three or four tier market is relatively rough."

    Chen Jun pointed out that due to the stimulation of the dividend policy, the three or four class household appliance market is still on the rise, and the newly opened stores do not exist at all.


    The figures released by the Ministry of Commerce in early April showed that in March, the sale of 14 million 715 thousand items of household appliances to the countryside reached 34 billion 480 million yuan, up 135% and 179% respectively from the same period last year, which is another 10 million steps after January of this year.


    Interpenetration


    "Compared to the home appliance chain, the weakness of the manufacturer's exclusive store is that the product line is single and the category is small."

    Luo Qingqi, a household appliance expert, pointed out that whether the home appliance manufacturers' own channels can really take root in the three or four tier market depends on whether they can further enrich the product line.


    The director of Jiangmen China electricity and associated company disclosed that in order to extend the product line, the United States electrical appliances are preparing for TV products.

    At the dealer conference at the end of last year, the United States set out a 32 inch brand LCD TV. "It's just not released yet."


    Konka Group responsible person pointed out that this year black power manufacturers to join the white power camp, on the one hand, because white electric products profit is relatively higher, on the other hand is also to enrich the three or four tier market product line, "now the United States and Haier and other white giants in the one or two tier market share has reached a monopoly position, black electric manufacturers white products in this market is difficult to find room for survival."


    The responsible person said, although the black electric manufacturers once failed in the test of the brand stores in the three or four level market, but in the past two years, as the consumption power of the rural market increased, the black power producers including Konka began to try again in the county town market, and its mode was somewhat similar to the beauty and Haier stores.


    "Image shop is the best tool to create the brand image of the three or four tier market, and the key to success is whether the product line is complete."

    The above responsible person said, Konka's white products main sales target is the three or four level market, and to the image shop to fill the product line.


    "Regardless of household appliances manufacturers in the three or four tier market expansion and no expansion, there are risks."

    Luo Qingqi said that the appliance industry competition in the next two years is no longer the speed of expansion, but the comprehensive management level.

    Because the management cost of rapidly expanding US electrical appliances increased by nearly 60% over the same period last year.


     

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