Experts assert that it is difficult for Internet companies to succeed in invading the white goods industry

Faced with the cross-border entry of Internet companies into the color TV industry, some people have called for Internet companies to enter the smart white appliances industry to disrupt the stagnant white appliances industry. However, I think this is just wishful thinking. Under the current technological level and market conditions, Internet companies will not enter the white appliances industry for no reason.

We are looking forward to Internet companies entering the white goods industry because we see that Internet companies entering the color TV industry have not only failed to subvert the color TV market and snatch away market share, but have instead attracted eyeballs and traffic, greatly livened up the color TV market atmosphere, and saved the traditional color TV industry that was originally trapped in "low-key, deserted, and boring".

This desire is indeed good, but the key is whether Internet companies are willing to touch white goods and come to the white goods industry to pan for gold and silver. Whether the white goods field is attractive enough and suitable for organic integration with the Internet. In other words, can Internet companies enter the white goods field and get a living space and reasonable returns?

Let's compare the entry of Internet companies into the black and white appliance fields. We will understand that under the current technical level and market conditions, the Internet companies chose to enter the black appliance field represented by color TVs instead of the white appliance field represented by refrigerators, air conditioners and washing machines. There are deep-seated reasons for this, and it is not a matter of course.

First, the degree of association is different. It is not difficult to find that LeTV, a representative enterprise that has entered the color TV industry to disrupt the market, is both an IT enterprise and an Internet TV enterprise, and is also involved in film and television production and distribution; iQiyi is also a typical IT enterprise, and its main business is online video; Xiaomi's association is more telling. It was originally a company that played with "screens". To put it bluntly, it didn't even need to cross the boundaries, and it naturally entered the industry by directly extending. LeTV and iQiyi's association with color TVs lies in content, and Xiaomi's association is the transition from small screens to large screens. This high degree of association makes it easy for them to cross boundaries.

On the other hand, Internet companies can hardly find any organic connection with white goods. If there is a connection, it is that the control system of white goods requires IT products, but this connection is only a hardware supply relationship in the industrial chain, and has nothing to do with the connection of attributes and genes.

Secondly, the profit model is different. Take LeTV as an example. The recently launched LeTV TV X50 Air 4K TV is almost half the price of the lowest price of a 50-inch 4K TV from traditional domestic companies. The product prices of traditional color TV companies are close to cost, but LeTV TV, which is only half the price, can make a profit. The reason is that LeTV's profit does not come from hardware, but from subsequent services such as content charges and advertising fees during user use.

Imagine that when Internet companies enter the white goods industry, they can only compete with white goods companies in terms of hardware products. Building their own production lines requires huge capital investment and professional manufacturing talents. Do Internet companies have them? OEM production has no price or supply advantages at all. How can they compete with traditional manufacturing companies?

Thirdly, Internet companies enter the color TV industry with the goal of seizing the export of content, while white appliances do not carry this function at all. Not all Internet companies enter the color TV industry to disrupt the market, but only companies related to TV. They enter the TV industry with the goal of seizing the export of content from the upstream. Therefore, it is not difficult to find that among countless IT companies, only a few cross over to the color TV industry.

Some people think that Tmall and JD.com are now deepening cooperation with white goods companies and even customizing product sales, which means they have entered the white goods field. In fact, this understanding is one-sided, seeing only the appearance but not the essence. In fact, whether it is Alibaba's Tmall or Tencent's JD.com, their cooperation with white goods companies is just selling in online channels and expanding their own platforms. It can only be regarded as entering the white goods circulation field and a new type of home appliance channel. This is fundamentally different from truly entering the white goods field. Even the popular platform customization is essentially fulfilling the functions of channel dealers.

It can be said that with the shrewdness of Internet companies, without the drive of huge profits and mature conditions, they will definitely not blindly enter the white goods manufacturing field at present.

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.