As we all know, in recent years, most household appliance enterprises have never been better off. On the one hand, the competition for homogeneous products has become increasingly fierce, and the household appliance market has entered the era of vicious price wars. On the other hand, consumers demand more diversified and personalized household appliances, which means that products that cannot meet the needs of consumers are easily eliminated by the market. Due to these two factors, many domestic and foreign Appliance Enterprises are in the bottleneck, and some enterprises are even unable to meet their needs.
While the industry is in a confused state, a household appliance giant called whirlpool has been on the opposite direction, frequently expanding its territory through mergers and acquisitions. The home appliance giant, headquartered in Michigan, is in the world's leading position in the home appliance industry. In the past year, whirlpool has successively held Indesit and Sanyo, Italy's leading Household Appliance Company, the latter is the home appliance giant in China. What is behind such a fierce capital action? What is the impact of whirlpool holdings's three oceans on China's household appliance market?
What is the attraction of the ocean to whirlpool?
The root reason for holding sanyang is that the Chinese market is very attractive to whirlpool. It is not surprising that China has the largest consumer market in the world, and many multinational companies have chosen to seek gold in China. Whirlpool, as a household electrical giant, takes its roots in the Chinese market for granted.
So why did whirlpool choose three oceans? There are roughly two reasons: on the one hand, Yi Sanyo had been dealing with foreign brands for many years and had a strong international background; on the other hand, whirlpool took a fancy to Yi Sanyo's technical genes, as well as its complete product development, market operation, and internal management systems in China.
How can we interpret these two points? First, since it is a foreign company holding Chinese enterprises, it will inevitably consider business integration issues. From some past cases, corporate culture integration and internal communication are very important. For example, after Lenovo acquired the ibm pc business, it strengthened integration in multiple ways-among the 13 group's management, people from IBM took six seats, including CEO, Global chief operating officer, chief marketing officer, product development director, and other important positions. Such a management architecture can minimize the obstacles after mergers and acquisitions and maximize internal integration.
This problem does not seem to exist for sanyang. After in-depth cooperation with international brands, sanyang has formed a complete set of foreign investment cooperation experience over the years and accumulated international brand technologies. Not only does the product have international quality and technical genes, but also the localized operation team can better adapt to the needs of Chinese culture and the Chinese market. This can be said to be a huge attraction of the three oceans.
Second, sanyang has long been familiar with the local development of China, and is familiar with local industry trends and consumer demands. More importantly, it has been well developed in terms of product development, marketing operations, and internal management. In this case, Whirlpool shares in sanyang is tantamount to a very high starting point.
As we all know, there are roughly two solutions for multinational enterprises to enter the Chinese market. One solution is to set up their own branches and start from scratch. The advantage of this model is that it is relatively cost-effective and easy to operate, the disadvantage is that the starting point is low. Because it starts from scratch, long-term accumulation is required to establish an advantage. Another solution is to invest in local enterprises. The advantage of this model is that it has a high starting point and does not need to start from the foundation. However, the disadvantage is that the investment amount is usually large, sometimes there may not be ideal investment targets.
Based on the above two points, it should be said that whirlpool is lucky. When it plans to enter the Chinese market in a large scale, such a very suitable local enterprise can help, with the support of sanyang, whirlpool's performance in the Chinese market is certainly worth looking forward.
Four major brands work collaboratively to deepen the household appliance market
After the merger, whirlpool will have four major brands in the Chinese market: "whirlpool", "SANYO", "Emperor", and "rongshida. Why will whirlpool use these four brands to deepen the household appliance market?
"From the positioning point of view, there are significant differences between the four major brands. whirlpool is positioned as a high-end brand of European and American style, focusing on quality and technology. Sanyo is a mid-to-high-end brand of Japanese and Korean style, rongshida focuses on excellent brands that meet the basic functional requirements of consumers and have high cost performance." Jin youhua, Chairman of sanyang, explained this. In other words, the four brands should be oriented to different consumer demands and market positioning. In other words, whirlpool hopes to form brand differentiation through product differentiation and further explore the market. So, does this brand segmentation model adapt to the Chinese market?
Theoretically, as consumers learn more and more about household appliances, they will inevitably analyze the cost-effectiveness, design style, and functional characteristics of household appliances through multiple channels, select the most suitable product from a wide range of products. In this case, whirlpool uses different brands to attack different market segments, which is at least better than a single brand, because the era of "One way to eat once a day" has passed.
In addition, even the four brands run simultaneously, it will not impose any extra burden on Whirlpool, because the four brands have strong effects such as technology sharing, channel collaboration, and resource interconnection. That is to say, brand diversification will not put too much cost pressure on Whirlpool. On the contrary, through refined operation, whirlpool will be able to enjoy the benefits of multi-brand operation.
In fact, this is just a breeze for Whirlpool. in whirlpool in the United States, we have experience in operating five or six brands at the same time. This experience can be used in the Chinese market, make China's household appliance industry bigger and stronger. I believe that the investment in sanyang is only the beginning. In the interaction of multi-brand effects, whirlpool's local strategy will surely achieve remarkable results. (Text/Wang yijian QQ: 543415188)
Share shares in sanyang, whirlpool and four major brands to share the home appliance market
