Electrical appliance dealers need to differentiate into vertical and small attack

Recently, the company announced the official completion of the acquisition of Chinese household appliances manufacturers, Hefei Rongshida Sanyo Electric Co., Ltd. (or "Hefei Sanyo") [SSE: 600983],51% shares, become its controlling shareholder. It is also seen as an important step in the Chinese market for Whirlpool. In fact, we have been in the Chinese market for 20 years and have been a strong competitor in the home appliance market. Then the Hui and Pu acquisition of Hefei Sanyo, the impact on the market where?

As we all know, China's home appliances market is very competitive, a big reason is the strength of local manufacturers are quite strong. Especially in recent years in the price of competition, but also let market competition increasingly white-hot. Of course, we also see that because there is a relatively full market competition, home appliances regardless of quality or performance have a very big upgrade. We see that the most direct acquisition of Hefei Sanyo is to obtain a huge distribution system. The system has more than 30,000 outlets that penetrate all levels of Chinese markets. This will help to replenish the existing layout of the whirlpool in China.

It is noteworthy that in recent years the concept of smart home has developed rapidly in China's current smart home market, there have been a large number of domestic internet companies, has explored the set-top boxes, routers, WiFi sockets and even smart switches and other smart home products. In addition, there are air boxes, monitors, cameras and so on. But the traditional appliance manufacturers in this area, but in their traditional advantages of the project, air-conditioning, washing machines, kitchen products, television and so on have a great technical upgrading. In this regard, Whirlpool is one of the outstanding representatives. Moreover, the acquisition will be of great help to the greater market share of Whirlpool in China. We observe that the advantages of whirlpool are not to be underestimated, which is the biggest rely on China's market.

One is the influence of international brands, for Chinese users have a certain appeal. 2013, Whirlpool global sales of 19 billion U.S. dollars, its home appliances in the Americas market share of more than 70%. Data show that 7 out of 10 Americans use whirlpool. Every year, about 2 million new families around the world choose Whirlpool to open the fridge. Whirlpool is the world's leading miracle for 13 consecutive years of sales of white electricity.

The second is the use of Hefei Sanyo channel advantages, rapid extension of their product coverage. Hefei Sanyo after in-depth cooperation with international brands, over the years has formed a set of foreign cooperation experience, with international brand technology accumulation. Not only the product has the internationalization quality and the technology gene, at the same time, the localization operation team adapts the Chinese culture, adapts the Chinese market change the thought, achieves the quick response.

The third is that multi-brand operation helps to blossom more. Whirlpool in the multi-brand operating experience, in the world with many well-known international brands. This time the whirlpool and the three oceans, Dili degree, Rongshida strong attack, will be in different market users need to take differentiated brand strategy. Which Whirlpool for the new company strategic brand, the main high-end market, the product to take the European and American style, Sanyo Emperor as a continuous long-term use of the main brand, products take Japan and South Korea style; Rongshida brand is characterized by a cost-effective brand, focusing on key markets. It can be said, "the key to the operation of multiple brands is to use product differentiation to solve the brand differentiation." Through the function, the appearance, the style creates the different product localization, and applies the network, the channel management, and the information system realization. Whirlpool China will also bring many brands to the industry for reference. And Chinese enterprises have been not ideal in the operation of multiple brands, this time, we will see how Whirlpool is to build their own multi-brand strategy.

In fact, we also see international brands in the Chinese market after the situation, how to better understand and understand the market for them is very important. After the merger and acquisition of Hefei Sanyo, can also shorten the process, and more mainly through the operation of multiple brands to meet the needs of different levels of users, this is the key. After the acquisition of Hefei Sanyo, the new company will be through the introduction of Whirlpool global research and development, technology, procurement, talent, market resources and so on, using Hefei Sanyo in the domestic mature channel system and complete operation mechanism, with the world's leading product force and the most adaptable to China's operating mechanism in the Chinese market.

Predictably, the competition in China's home appliance market will become more "tense" with the benefits of the takeover, and the competition will continue into the product line at all levels. The advantage of the whirlpool is also the development and influence of four brands, Word-of-mouth has achieved good results, the formation of a joint effort to participate in the competition will undoubtedly show more strength and competitiveness. Whirlpool China will become a trans-ice, washing, kitchen, small appliances and other fields, diversified, multi-brand international white appliance giants.

In addition, I am very much looking forward to the benefits and PU can in the technical, especially intelligent home has more outstanding performance. After all, Whirlpool has 59 production and research centers around the world. Whirlpool China in the kneading of four brands on the basis of the continuous expansion of its own channel advantages and user advantages, will be its new home appliances in China to build the basis of an aircraft carrier. and technological progress, as well as the penetration of the smart home market, will be the future vision of the layout direction. What we can predict is that the Chinese home appliance market will become more centralized because of the whirlpool mergers, and the wrestling between the big players will be more intuitive. As the end user, we also hope that the competition will be more fully, so that we can get the most affordable products and cost-effective services.