The era of low profit comes diversified into a trend of home appliance industry

Recently, Suning Appliance held the work plan and deployment meeting for the spring of 2012 to clarify the working direction and objectives of each system throughout the year. Suning's marketing organization system has expanded significantly. It has added five categories such as department stores, books, and daily necessities, and has supported new channels such as online Suning Tesco, offline Suning Expo Super flagship store and Tesco Shimen shop.

It is reported that in 2011, Suning's e-commerce products category expanded from traditional household appliances and 3C products to clothing, home, make-up and washing, watches and clocks, jewellery, books, and virtual products. The number of SKUs was nearly 800,000, and the sales scale will increase by nearly five times. In addition, the category of Tesco Life Plaza opened with reference to Japan’s experience has also expanded to homes, toys, animation, watches, models, snack foods, etc. This year, Tesco’s Shimen Store will add 30 new stores. Suning has seen rapid development of new online and offline products. After the rapid expansion, home appliance chain enterprises began to abandon the price war and started differentiated operations in order to further seize the market.

Seeking major market growth points In the future, products that meet the needs of customers for entertainment and leisure, and products that meet the needs of consumers of different age groups will continue to grow. The home appliance chain industry will shift toward satisfying the dual needs of customers' material needs and spiritual needs. Perhaps in the near future, the entertainment and survival of the home appliance chain industry will become an important industry feature. "Meeting the needs of customers, providing customers with quality services, allowing customers to enjoy a good service experience, and then how to promote transactions and achieve sales."

Liu Buying: It is also one of the directions for chain companies to open up new growth points beyond home appliances. The slogan of "not selling" goods proposed by the industry. The understanding of "selling" is to fully and meticulously explain the function of the product to the customer, and "selling" is the value of the product rather than pure physical goods. It does not satisfy what kind of goods are provided to customers, but it seeks service experiences that are satisfactory to customers. "Buy it with confidence and always meet" should be the ultimate goal pursued by the home appliance chain service.

Emphasizes "function and value"

"The function and value of mastering the goods as an essential quality of service personnel, through various mechanisms to ensure the improvement of employee service quality, continue to improve the quality of service in the store, to provide customers with the best condition to provide quality services, practice this concept. "In Japan's retail industry, the company's customer demand, combined with ODM custom products developed by the manufacturer, sales have accounted for 25% of total sales, and this proportion is still further enlarged.

Luo Qingqi: For example, when we provide maintenance services to customers, we can arrive at the customer's community one hour in advance, and provide multiple services based on customer requirements: advance, punctual, and appointment extensions.

Persist in listening to customers' voices and feedback their suggestions on products to manufacturers.

The competition in the chain industry to upgrade the marketing management level is a key factor to measure the core competitiveness of home appliance chain retailers and the long-term development level.

Home appliance chain retail enterprises are on the surface of the network layout of home appliance chain stores competition, essentially the level of competition in marketing management.

If three years ago, the home appliance chain retail industry competed rapidly and boldly and courageously; then in the next three years, home appliance chain retailers will compete and optimize their stores, courage and ability to close stores. The marketing management will play an important role in the optimization of stores and the replacement of stores.

Liu Buying: The competition in the home appliance chain industry will shift from the number of stores, prices and sales scale to single store output, loyal customer group share, service quality, service price competition, followed by wide publicity, procurement, promotion, and front desk services. The improvement, investment, and development of back-office services will become the mainstream of the home appliance chain retail industry.

Industry insiders warned that all parties involved in the competition should devote more energy to optimizing management, reducing costs, and improving services.

The industry consolidation continued a few years ago. There are more than 20 large companies in the home appliance chain industry. Only a few of them have remained until now. Other companies have been revoked and merged.

Liu Buying: "The general trend of the world, long time must be together, long together will be divided." The future home appliance chain industry vertical and horizontal mergers and acquisitions merger will continue. The “cake is limited” in the market, so the redistribution of market share in the home appliance chain industry will always shift. As an inevitable result of market development, the industry will inevitably carry out repeated integration. The light of the market will light up one day, and the integration of the industry will continue day by day.

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