China is a big country home appliances have become an indisputable fact, but whether the power be called home appliance industry? Entry fee issue, chain giant home appliance manufacturing issues, and profits are excessive
Competition And so on, would affect this industry
Health Development? 2006 States United States
Global Forum on appliances, many home appliance manufacturers industry executives trying to sort out the next step in the development of a clue.
Learned that as early as 1997, China has become a great power home appliances, production scale has reached the world level, while China is the world's home appliances consuming countries, the annual spending power of more than 500 billion yuan.
However, the Chinese home appliance industry is big but not strong, but profit is still in a low-scale development stage. Although the Chinese home appliance
Brand Break into the world a successful way, the export volume increasing, but
Own brands Underweight, lack of competitiveness of core technology, most low-end product line, or go alone, low profit product.
Both in the international market, or in domestic market, China's high-end products are also relatively disadvantaged position, the whole industry profitability is low, China
Home appliance chain Under the large enterprise in the small profit margins hit
Price war , To the development of trouble. The industry believes that China's home appliance industry has come to a turning point of history, to realize the change from large to strong.
Profit is the key to power home appliances
Forum, vendors think that if a change from big to strong, the key is how to increase the level of the industry profits and profitability.
Chinese home appliance industry in recent years, the development of evolution, as appliance manufacturing and distribution industries in China is still in the stage of rapid development, resulting in a large extent, the occurrence of many short-term behavior, in marketing investment, far greater than the product R & D investment, in the diluted earnings continued the grim situation, it is also very prone to contradictions among manufacturers. Manufacturers said that this conflict has been magnified, leading to the outside world that China's household electrical appliance industry as a whole is relatively low profit channel extrusion, and this view is not responsible for, and if can not find the root cause of declining profits, the appliance will industry and development. Was suggested by the profitability of the manufacturing sector to create its own industry, channel profitability should also be channels to create. Appliance industry should rely on technological innovation to improve the competitiveness of products; in product development, production,
Sell , The importance of high-end market; through meticulous management, improve operational efficiency; competition from a simple price war, war to the value of war and brand transfer; in the international market, take independent brand development and so on. In other words, the manufacturing sector from the "manufacturing" to "create" transition, circulation and also from the increase "efficiency" to improve the "effectiveness" in transition.
Home appliance chain has come to the bottom line profits
Of the recent uproar of the "channel extrusion business suppliers no room for" saying the country the United States,
Suning , Yongle, Dazhong such channels as the forum for-tat business, said its consolidated gross margin business channels only about 12%, lower than the overall level of international counterparts, has come to the bottom line profits. Appliance manufacturers issue of meager profit margins of many factors, while competition is one of the main factors. This is because the more competition between manufacturers to Obtain the market by price, rather than enhance the core competitiveness to profit. Such as production costs are similar, but the selling price must be less than 30% of such opponents, resulting in huge loss of profits.
Secondly, rising production costs also contributed to one of the major manufacturers falling profits. It is understood that in 2005 the cumulative cost of sales industry-wide increase of 21% over 2004, higher than the 1.5% sales growth and cost increase of more than revenue growth, coupled with overcapacity, oversupply, are factors causing the decline of profits.
Entry fee is a Excitation And stimulate Slotting allowance on the long-disputed issue, the view that channel sales of goods also have a bottom line, slotting allowance abolished is sure to make it up elsewhere, Entry fee only comprehensive Maori channel an integral part of, as apart from the basic personal income in other income other than wages, such as basic pay, bonuses, subsidies make up the month's wages, but a different composition of items in the channels is reflected in the profit structure .
The same time, business sales position is to provide a resource for good sales position will have good benefits, this position is the only non-renewable resources, and manufacturers are willing to compete for this investment. Channel business representatives indicated that the investment will help companies do better, will be diluted more than the cost of goods sold, the factory is a kind of encouragement and stimulation.
"No essential contradiction between the companies, is the contradiction between production and consumption in the channel on the show." Channel operators in the forum, said a strong production capacity and consumption of unequal conflicts can only platform in the circulation on to be released, but if there is no chain of channels, the contradiction remains. I am an expert from China Chemicals Products, usually analyzes all kind of industries situation, such as inversion chairs , soloflex whole body vibration platform.
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