1. globalization: overseas market space is broad, Chinese household appliance brands accelerate to sea

According to data from the Champ Consulting Group,2022Global retail sales of household appliances reached6600Billion US dollars, of which large household appliances are4000billion dollars, small household appliances2600Billions of dollars. Expected2023Global retail sales of household appliances for the full year6800About US $100 million, of which large household appliances are about4100billion dollars, small household appliances about2700Billions of dollars.

China is the world's largest home appliance market,2022The market size of household appliances and small household appliances accounted for up24.4%、20.2%. In the face of the vast overseas market, Chinese household appliance companies still have a lot of room for expansion. In the future, they need to rely on outstanding product competitiveness and management advantages to continue to dig into overseas markets and increase market share.

Shangpu Consulting believes that Chinese enterprises have significant advantages in product competitiveness and management capabilities. On the one hand, the cost and manufacturing advantages brought by the perfect industrial chain integration and scale effect, and the product leading advantages brought by product innovation and technology research and development. The R & D investment of Chinese household appliance enterprises is higher than that of overseas enterprises. For example, Haier Zhijia built a user-centered"10 N”Open innovation ecosystem, Midea Group gradually formed“2 4 N”Global R & D network, Gree Electric currently has the world's largest air conditioning R & D center. On the other hand, rapid market response and execution, including the diversified needs of consumer groups, the richness and diversification of channels, the innovation of marketing methods, and the ability to quickly adjust to emergencies will all be possible for Chinese companies to gain competitive advantages. Source. For example, Jiuyang andNinjaCo-launchedFoodiThe series combines the product principles of air fryers and pressure cookers to cater to North American consumers' demand for products.“Multi-function integration”The preference; Cobos's Tim can wash machine, suitable for large areas of North America housing floor cleaning, once launched quickly became Amazon sales champion; Stone sweeper in North America is known for its high cost performance, in order not to lose.iRobotThe technology and friendly prices of such high-end products capture the favor of the U.S. mid-market.

According to data from Shangpu Consulting Group, Chinese companies have accelerated their access to the sea through mergers and acquisitions and cross-border e-commerce channels. Taking the U.S. market as an example, there are currently two main ways for Chinese household appliance companies to sell their own brands in the U.S.: One is to acquire U.S. household appliance companies and reorganize the business structure. Chinese traditional household appliance companies have imported their own brands into the US domestic market through acquisitions. At the same time, with advanced management and operation experience, through effective integration and coordination, the acquired brands have also achieved growth beyond the industry. At the same time, direct acquisition can also reduce the cost of offline channel expansion. Chinese enterprises can directly share the local management team, marketing channels, customer groups, brand recognition, technology research and development strength and other resources of American enterprises to achieve win-win results. For example, Haier Zhijia acquiredGEAAfter that, a strong alliance was achieved through integration.1+1>2. Haier Zhijia's share of the U.S. market has reached its highest level in a decade,2022Annual sales revenue800billion, accounting for total revenue continued to rise35%。JSGlobal Life AcquisitionSharkNinjaAfter that, the results of each division maintained steady growth.2022year,Shark/NinjaRevenue growth is90%。2022YearSharkRealize revenue22Billion US dollars, year-on-year growth9.5%；NinjaRealize revenue20Billion US dollars, year-on-year growth16.3%. In terms of profitability,2022YearSharkNinjaSegment Gross Margin41.5%, compared to the pre-acquisition2017Annual growth6pct。

The second is to use cross-border e-commerce channels to quickly open overseas online markets. Cross-border e-commerce has lowered the threshold for going to sea, helping Chinese household appliances to accelerate the development of overseas markets. In the traditional offline sales model, the threshold for Chinese household appliances to enter overseas markets is relatively high, while cross-border e-commerce reduces the intermediate links of foreign trade, providing a more efficient and simple channel for domestic goods to go to sea. At the same time, thanks to the cost and manufacturing advantages brought by the perfect industrial chain integration and scale effect, and the product leading advantages brought by product innovation and technology research and development, China's household appliances products are becoming more and more competitive in the global market. In recent years Stone Technology, Cobos, andVesyncTake the lead in achieving rapid sailing through cross-border e-commerce and overseas offline channel construction. In the future, with the further release of overseas e-commerce channel dividends, more Chinese household appliances with rich functions and obvious cost-effective advantages will enter the overseas market.

2. diversification: household appliances leading actively diversified expansion.

The rate of urbanization has slowed down, and it is imperative for household appliance enterprises to diversify and expand. The increase in urbanization rate is an important driving force for the growth of demand in the household appliance industry. However, with the slowdown in economic growth, the period of rapid urbanization has basically ended, and the current increase in urbanization rate has slowed to an annual rate.1%Left and right. In order to find new growth momentum, household appliances enterprises have diversified expansion.

Champu Consulting believes that the United States through mergers and acquisitions power.Bend business, from household appliance companies“Smart Home+Intelligent Manufacturing”Transformation. On the one hand, the United States to adjust the business framework, the new industrial technology business group (the original mechanical and electrical business group).2020Year12Month31On the same day, Midea Group released the article "Midea: Starting Again", announcing the adjustment of its business framework, changing from the original four major sectors to five major sectors, adding an industrial technology business group made of high-precision core parts such as compressors and motors. On the other hand, in order to achieve business expansion, Midea has carried out a series of unrelated diversified mergers and acquisitions. Such2017Year1In January, it acquired KUKA Group, one of the four robotics giants, to help the United States automate its production and expand its industrial robotics business.2020Year3In January, the acquisition of domestic high-voltage inverter leading enterprises Hekang Xineng, to promote the company's large-scale central air-conditioning inverter technology upgrade.2020Year12In January, its company Midea Building Technology and Lingwang Elevator reached a cooperation and officially entered the elevator business.2021Year2month, through the acquisition of Wandong Medical, cut into the medical field of new track. Relying on diversified mergers and acquisitions, the United States on the one hand to enhance its own business capabilities, on the other hand to achieve new areas of expansion.

Gree acquired Yinlong, holding the shield environment, plus code layout of new energy vehicle business.2022Year4month, Gree spent21.9Billions of yuan to obtain shield safety environment29.48%equity, to achieve a holding. Previously, Gree has acquired Yinlong New Energy to develop new energy commercial vehicle supporting business. The acquisition of Dunan Environment, on the one hand, further opened up the upstream and downstream industrial chain to ensure the stability of the supply chain, on the other hand, it also expanded the new energy vehicle thermal management parts business.

Intelligent 3.: new intelligent level of rapid improvement, smart home ecology gradually mature

With the maturing of the Internet of Things and cloud computing technology, "intelligence" will continue to empower home life and improve the convenience and interaction of home use through two ways of smart single-item and whole-house smart home.

Champ Consulting believes that smart single products: the level of intelligence is rapidly improving. By raising the level of intelligence. Enterprises can add voice interaction, remote control, precision control and other functions for household appliances, so as to improve the user experience. Specifically, the traditional category of white power intelligent control and background networking technology gradually mature, the degree of intelligence of kitchen electricity is relatively low, kitchen small household appliances are basically equipped with intelligent control,appInterconnection and other functions, emerging categories, cleaning appliances, projectors, etc. are through the rapid improvement of intelligent level, to achieve such as automatic barrier avoidance, self-cleaning, automatic picture correction and other pain points, and constantly improve the product experience.

Smart home: ecological maturity. By building a smart home ecology, enterprises can provide users with a more intelligent, convenient and comfortable home environment, and realize the interconnection and collaborative work of household appliances. Specifically, Haier Zhijia takes "smart space" as the core and creates a user-centric"10 N”The open innovation ecosystem has achieved a leap from single-product intelligence to spatial intelligence;“beautiful cloud”as the basis for constructing“beautiful cloud+Beautiful Smart Family+Midea Smart Community”The three-in-one smart home ecosystem has realized the upgrade from product intelligence to service intelligence;“Gree Cloud”For the platform, built“Gree Cloud+Gree Smart Family+Gree Smart Community”The three-in-one smart home ecosystem has realized the transformation from device intelligence to scene intelligence.

Conclusion

To sum up, the household appliance industry is a dynamic and innovative industry. With the diversification and upgrading of consumer demand and the continuous progress of technology, household appliances will show a higher level of quality, function and intelligence. At the same time, household appliance companies also need to continuously expand overseas markets, diversify their businesses and smart home ecology to cope with market changes and competitive pressures. Chinese household appliance enterprises have significant advantages and achievements in globalization, diversification and intelligence, but they also face challenges in brand awareness, channel construction, and standard setting. Shangpu Consulting suggests that Chinese household appliance companies should continue to strengthen product innovation and technology research and development, enhance brand influence and premium capabilities, expand omni-channel sales networks and service systems, build an open and win-win smart home ecosystem, and realize the transformation from a manufacturing country to a brand power.