Appliance giant "staking their claims"

From late March of this year, the appliance giant “staking its pace” has accelerated significantly. The first was Suning's advance into Enping, and the other was GOME's entry into the Jianghua shopping district. The home appliance giants Hengfa Appliances, Dayang Home Appliances and CLP Power, which have been relatively quiet for a while, are also busy preparing for new stores. All kinds of signs indicate that in the next half year, the home appliance market in Wuyi District will surely be “smoker”.

By the end of the year, at least 14 new home appliance stores will have to “do more, or do they have to be stronger?” For home appliance chain companies at this stage, this is obviously not a problem. Whether it is a foreign home appliance chain company or a local home appliance company, they all gave the same answer - "continue to scale expansion."

The newly appointed general manager of Jiangmen Suning, Liu Jianbin, stated bluntly: “If home appliance chains are to become bigger and stronger, they must have a sufficient number of sales outlets to support them, and Suning has mature conditions for accelerated expansion, whether it is talent pool, management platform, or The capital chain has enough support.” He said that this year, Suning will make efforts to speed up the store, as long as there is a suitable place, it will be clothed, “Our goal is to strive for the largest scale, without leaving any Competitors will have to open at least five more before the end of this year and strive to reach 20 within two years."

Jiangmen Gome, which currently has the largest number of stores, said that opening stores is more of a strategic significance. "At the end of this year, at least three more stores will be opened to further consolidate Gome's strong position in Jiangmen. The specific goal is to 'get at least 30% of the market'," said Wang Yonghong, general manager of the company.

In the face of the frequent exertion of foreign companies, local home appliances have also shown no signs of weakness. They have expressed that they “must keep their positions because there is no escape route”.

Hengfa Home Appliances Director Li Zhiping revealed that before the end of this year, Hengfa needs to open at least two more stores, including Fengle Store in Beixin District, which will open at the end of August.

Zhao Bixiong, Director of Oceanic Home Appliances Retail, said frankly that Ocean will have to open at least three more stores this year. Two of these stores have already been implemented and are expected to open at the end of July.

Tan Lifen, a CLP manager, stated that the purpose of opening a branch is to avoid the fierce competition in the core shopping district. At present, the second store of the CLP, West District Store, is under intense preparation and is expected to open operations at the end of May.

According to industry analysts, according to the latest expansion plans of home appliance giants, by the end of this year, at least 14 new home appliance stores in Wuyi District will be added. For cities like Jiangmen, the degree of intense competition is imaginable.

The home appliance market is far from saturated. Judging from the total number of stores owned by GOME, Suning, Hengfa, and Dayang’s four home appliance giants, Jiangmen Gome has 10 stores, Jiangmen Suning has 7 stores, and Hengfa and Ocean’s stores are 4 and 3, then, will continue to open 14 new stores this year. Does the market have such capacity?

In this regard, Liu Jianbin believes that the home appliance market in the Wuyi area is far from saturated and the competition is far from ideal. According to the data currently available, the chain industry’s share of the industry is still less than 40%. “Especially in the township market, despite the huge potential for consumption, it is precisely because the chain channels have not been effectively covered, making the supply chain of the electronics manufacturers too long, leading to an increase in overall costs. Not only does the price fall, but the after-sales service industry is also uneven. A blank area needs a chain of companies to fill in.” Liu Jianbin also said, “The future development of home appliances industry, will be 3C sales as the focus of construction, the categories will be more and more abundant, will be more and more diverse, can be developed The space is huge, the market is a big cake company can not eat, looking forward to working with competitors to make the market bigger and stronger.

Although interviewed businesses are unwilling to disclose the specific location of the new stores, potential shopping areas, such as the Beixin District, county-level cities and even the key township markets under the county-level cities, have become the focus of expansion without exception.

“Fengle shop in Beixin District is only the first step. Next, Hengfa will focus on the expansion of the outside business district outside the city.” Li Zhiping said that there is competition for development, and now is the strength to fight, fight At a crucial moment of endurance, as long as it is not a vicious competition, Hengfa will persist in the end and will welcome it.

Zhao Bixiong bluntly stated that "the purpose of opening a store is not only intended for today but also for planning the future. Therefore, both the core shopping area and the potential shopping area are locations of interest to the ocean."

“The increase in the consumption power of the township market has provided new market opportunities for home appliance merchants. Whether it is local or foreign household appliances companies, they will not sit idly by, but will rely on their respective advantages to achieve strong competition and thus make home appliance manufacturers. The threshold for entry into the tertiary and tertiary markets has been greatly enhanced,” said an industry analyst.

The number of stores has become the five major players in the competition. The major home appliances giants have joined forces to accelerate expansion, which is unprecedented in the history of Jiangmen’s home appliances. Why is it chosen to coincide with this year? Is it a coincidence or is it a conclusion drawn from market analysis?

“On the one hand, it is the confidence brought about by the economic recovery. On the other hand, it is also the need for home appliance chain companies to accelerate their own development.” Experts in the industry analyzed that more and more fierce market competition has made it more difficult to increase the efficiency of single stores. Limited, it is necessary to seek new profit growth points and expansion will become inevitable. In addition, the first two years, real estate sales, many new home buyers to purchase home renovation needs to be released, will not be a large-scale consumption within a few years, so this year, home appliance chain companies have continued to find new blank shops, in order to new stores Retirement shop. At the same time, foreign chain companies are all listed companies, and constantly increasing the number of stores seems to be a good way to build investor confidence.

So, does this mean that the rapid expansion will become the future trend of the home appliance industry?

“The scale determines efficiency, and suppliers only favor strong businesses. To improve their ability in product pricing, payment, etc., they must have broad market coverage, purchasing scale and cost advantages.” Zhao Bixiong’s answer "If the number of stores fails to reach, it will always be in a weak position in the competition. In the future, home appliance companies can only strive for the largest market share by developing to the chain management model."

"Sweet players, to seek potential; not good players, seek the child." Liu Jianbin believes that the competition for home appliance stores, it is basically the number of stores competing. The more stores, the greater the influence, the more they have the right to speak in the same industry, and the strength of operating capacity is the key to determining the number of stores. Only the stronger the operating capacity, the more the number of stores.

Li Zhiping believes that home appliance sales are increasingly homogenous. In the future, more competitions will be implemented in the back-office systems of organization and management, human resources, information systems, and logistics platform construction, and scale advantages will bear the brunt.

However, behind the high profits, it is often high-risk. Some senior people in the home appliance industry pointed out that, first of all, rapid expansion can easily lead to tensions in the capital chain. In order to solve funding problems, various companies are seeking ways to circulate money. At present, foreign home appliance chain companies have successfully entered the capital market, and local home appliance companies. The road to listing is still a long one. Second, even if there is no lack of funds, the hidden dangers of rapid development are also present. First, the “hard injury” of corporate culture integration will become a “stop-gap” for its expansion, and second, the rapid growth of stores will lead to “ It's possible to greet more than chewing.