Consumer demand still exists, home appliance companies focus on the third and fourth tier markets

With the influence of national policies, the speed of new urbanization has accelerated. According to the "Urban Blue Book" released by the Chinese Academy of Social Sciences in July 2013, the urbanization rate is expected to reach 68% by 2030. In 2020, there will be 300 million agricultural migrant workers waiting to be urbanized, and by 2030, there will be 390 million agricultural migrant workers waiting to be urbanized. This is another huge consumer market. Home appliance companies have set their sights on the development of the third and fourth tier markets.

The acceleration of urbanization will inevitably lead to the acceleration of urban informatization construction, and will inevitably drive the development of intelligent transportation, energy-saving buildings, e-government, and e-commerce. It will also further release the demand for home appliances. With the arrival of the renewal period of home appliances, new growth potential still exists. With the acceleration of the new urbanization process, the consumption capacity of the third and fourth-tier home appliance markets has increased significantly, and secondary purchases for the purpose of upgrading and replacement have also injected new impetus into the third and fourth-tier home appliance markets.

A study of the color TV market by Aowei Consulting shows that in terms of sales volume, regional home appliance stores have the largest sales volume in the rural market, accounting for about 64.6% of the total sales volume in the rural market, followed by township outlets, accounting for about 16.1%, while department stores and large chain channels have relatively small sales volume, accounting for 9.2% and 10.1% of the total sales volume respectively. With the saturation of the urban market, brand channels are sinking, and township terminal outlets will still be the key market for various brands to compete for in the future.

In addition to black appliances, white appliance companies are also actively paying attention to the development of the third and fourth tier markets, which can be seen from the hottest air conditioner market. From the current point of view, the third and fourth tier markets have become the growth engine of the air conditioner market. According to the offline monthly monitoring data of CMM, the retail volume of the third and fourth tier markets increased by 12.4% year-on-year from January to May 2014, exceeding the growth of the first and second tier markets by 9.3 percentage points.

In the current air-conditioning market, the first and second-tier markets have entered a hot state. In comparison, the third and fourth-tier markets have large capacity and less competition. It will become a trend for air-conditioning manufacturers to cultivate the third and fourth-tier markets in the next 5-10 years. Compared with the first and second-tier markets that have experienced fierce competition, the dealers in the third and fourth-tier markets are much more immature. How to cultivate qualified dealers will be a difficult problem for air-conditioning companies in the third and fourth-tier markets.

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.