The best era for Chinese home appliances has just arrived

For Chinese home appliances, this is not the worst time, but rather the best time.

The best era for Chinese home appliances has just arrived.

Although, this year and in the next 2-3 years, the Chinese home appliance market will continue to consolidate and resist the cold. Even in the context of no change in real estate regulation policies, many industry insiders have said that the home appliance market will be even colder in the future, and 2018 will be more painful than 2017. The decline is no longer news.

Similarly, related home appliance companies are still struggling in the transformation and upgrading channel, and have not yet found a new business model or new path to replace "large-scale low-cost manufacturing". The new intelligent cheese of a large number of home appliance companies has not really been formed. The innovative business of many home appliance companies has been slow to progress, and this year they have returned to products, scale, and users to strengthen home appliances.

However, the best era dominated by Chinese home appliances is coming. This is not only because Chinese home appliance companies are the only ones in the world's home appliance industry that are still investing heavily in home appliance products and the home appliance industry, product innovation, and capital mergers and acquisitions; this is the internal strength and power that European, American, Japanese, and Korean companies do not have.

At the same time, China also has the world's largest home appliance manufacturing industry chain and consumer ecological chain, and has the world's most innovative and inclusive user group; in addition, the Chinese government's attention to the home appliance industry is shifting from direct policy subsidies in the past to creating an "open and fair" market competition environment, through supply-side reforms, quality revolution and other means, to make the capable ones rise and the mediocre and inferior ones eliminated.

one

After more than 30 years and nearly 40 years of development, China's home appliance industry is becoming larger and larger, with the scale moving from one trillion to two trillion. Looking at the global home appliance industry, whether in Japan, South Korea, Europe or the United States, only Chinese companies are still making large-scale investments, mergers and acquisitions, and technological innovations in the field of home appliances.

The past 10 years have seen a rapid improvement in the quality and stability of Chinese home appliances, and an endless stream of high-quality and new products. Of course, there are still many shortcomings, but this cannot stop Chinese home appliance companies from making up for the shortcomings in manufacturing and quality with the speed of innovation and creation.

At present, Chinese enterprises are growing at an ultra-high speed to make up for the shortcomings of the past, such as the lack of development time and weak accumulation, which just shows the ability and determination of the Chinese home appliance industry to face up to problems and solve them. As the saying goes, "time is exchanged for space", Chinese home appliance enterprises are currently exchanging speed for accumulation.

two

At present, the government's attitude towards China's home appliance industry is undergoing subtle changes. The core of this is the change from comprehensive fiscal subsidies in the past to the creation and optimization of an open and fair institutional environment.

Ten years ago, a series of national incentives and subsidies were introduced, such as home appliances going to the countryside, old appliances for new ones, and energy conservation and people's welfare. All enterprises, regardless of their quality, could enjoy the national financial subsidy policy, which even gave rise to a series of "home appliance industry speculators". A large number of zombie brands and fraudulent subsidy behaviors "emerged endlessly" in the home appliance industry. Many speculators made a lot of money.

Ultimately, this has delayed the transformation and upgrading of the entire home appliance industry. In the past 10 years, the country has not introduced any subsidy or stimulus policies for the home appliance industry. Even policies such as the "Energy Efficiency Leader" aimed at improving the energy efficiency of home appliances are mainly based on institutional and honorary incentives, rather than financial subsidies.

Ultimately, from the central government's "supply-side reform" policy to the State Council's special action on "quality revolution" for consumer goods, they are essentially encouraging the overall innovation capabilities of the home appliance industry to improve, and the level of quality creation should be improved by products to stimulate consumption and demand, rather than relying on low-level means such as subsidies. Only by creating this "open and fair" market operating environment can the strong be made bigger, the capable be made more refined, and a large number of weak and speculators be eliminated, so that the system and environment can replace policies and subsidies to drive home appliances.

III

Although the entire Chinese home appliance industry has entered a round of giant and oligopolistic development and competition in the past 10 years, new challengers and cross-border players have emerged in an endless stream in recent years. Behind this is the inclusiveness of an open home appliance market and the synergy of a fair home appliance market.

Since the beginning of this year, after the Internet and smart bubble burst, the home appliance industry has once again entered a new round of competition among giants and strong competition. Whether it is the competition between Gree, Midea, Haier, AUX, Hisense, and Chigo in the air-conditioning industry, or the "fight for every inch of land" between Hisense, TCL, Skyworth, Samsung, Sony, and Sharp in the color TV industry, or the competition between Haier, Midea, Hisense Rongsheng, Meiling, Siemens, Samsung, and Panasonic in the refrigerator industry, or the competition between Haier, Little Swan, Whirlpool Sanyo, Samsung, Panasonic, and Siemens in the washing machine industry.

At present, a group of home appliance giants are standing at a new starting point of a fair market, speaking with strength and dominating with performance, whether it is the scale, profit or high-end brand, so that all enterprises have the opportunity and platform to take the initiative to attack and participate in the battle. Although home appliance companies cannot quickly change the sluggish external market environment, they can rely on differentiated innovation and reform to consolidate their internal strength and set their own rhythm and take their own steps.

This is the worst era, but also the best era. However, for Chinese home appliances, the best era has just arrived!

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.