Home Appliance King, Suning deserves its name
The 618 e-commerce promotion has become a consumption explosion point comparable to the double eleven, and this year 618 is earlier and more violent than in previous years. Among the dazzling array of consumer products, home appliances are considered to be the vane of the economic level. It is both a necessity and one of the categories with the highest average customer unit price. It has always been a must for retail giants.
The end of 618, the first channel of home appliances has endedPreviously, iResearch released home appliance data and integrated online and offline sales. In 2017, Suning accounted for 20% of the total channel sales of China's home appliance industry, JD.com accounted for 12.3%, and Gome accounted for 7.5%. Several of the list, both online and offline retailer representatives, Suning relies on the advantages of dual-line integration of online and offline channels, to overwhelm the old rivals to enjoy the first place. So, in 2018, the year of so-called retail transformation, how does the channel perform to the home appliance category?
On May 25th, GfK China, a well-known data research company, released the "2018 Q1 China Home Appliances Market Trend Report", showing that in the first quarter of this year, the retail sales of the main home appliance market (color TVs, air conditioners, refrigerators, washing machines) were An increase of 7%, retail sales increased by 10% year-on-year, the average market price continues to rise, the demand for better products is more and more vigorous.
From the perspective of retail sales, the main home appliance market in the first quarter has exceeded 100 billion yuan. Among them, Suning's retail scale reached more than 22 billion yuan, ranking first in all channels with a market share of about 22%. This is consistent with iResearch's data, reflecting that the head pattern of home appliance retail is already stable.
In terms of channel ratio, in the first quarter of 2018, the offline market accounted for 69% of the total retail sales, online accounted for 31%, and high-end products with a price of more than 6,000 yuan accounted for 87% of offline retail sales. This shows that offline channels are still the main force in the home appliance market.
Based on the above sets of data, the author ’s insights have two main points: First, the expansion of the home appliance market cannot be separated from the active expansion of online channels for brands, but due to the unique attributes of home appliance consumption, offline channels are still the most dependable Base camp; secondly, due to the different positioning of channel providers, the position in the home appliance market has clearly diverged. JD.com's online channel advantage is superior to Suning, but why can't it still shake Suning's leading position in home appliances?
After more than 20 years of intensive cultivation, Suning currently has nearly 5,000 Internet stores across the country, including Suning Cloud Store, Unmanned BIU Store, Suning Jiwu Store, Suning Store, etc., covering major cities across the country. The perfect offline channel layout is what the e-commerce platform lacks most. This is like the short board of the "barrel effect", but it appears in the core zone. Especially in the sale of high-end home appliances, Suning's more than 5,000 stores across the country have become the preferred channel for consumers to buy.
At present, the 618 big fight is in full swing, and home appliance data of giants such as Suning, JD.com and Tmall have not yet been announced. But according to the analysis of the characteristics of the industry, the results of the 618 home appliance war are actually self-explanatory.
Flowering on all sides, Suning continues to attack
In my opinion, precisely because of the difference in understanding and layout of channels, JD.com ’s realistic goal for a longer period of time should be to keep the second, while trying to repair the lack of offline channels. In contrast, Suning is still continuing to attack, and strive to further widen the gap.
First, stay in peace, consolidate the offline advantage. At present, Suning is still accelerating the pace of opening stores offline, and is targeting the fourth to sixth-level market channels. As of June 4, Suning Tesco had 556 retail stores across the country, and plans to achieve 3,000 counties and towns by the end of the year, equivalent to an average of two retail stores in each county. The author believes that the 4th and 6th tier markets have better consumption potential, and investing in advance will now exchange huge gains in the future.
Second, accumulate momentum and continue to make efforts online. In the online market, in the first quarter of 2018, the growth of Suning household appliances in all categories exceeded the industry average. According to GfK's statistics on the Chinese home appliance online market in April 2018, the total retail sales of the four categories of online air ice washing and color TVs increased by 9% year-on-year. The four major categories of Suning increased by 43% year-on-year. Against the backdrop of a 5% decline in the overall retail sales of online TV sets, Suning grew by 17% over the same period.
3. Combining verticals and horizontals to lock in core manufacturers. In the field of home appliances, Suning actively empowers partners by opening up big data resources and technologies to help them achieve precise digital operations and smart retail upgrades. It is reported that in the weeks before the start of 618, the major head brands including Hisense, Skyworth, Changhong, TCL, Konka, Haier, Sony, Sharp, LG, Samsung, Philips, etc. have designated new cooperation plans with Suning. At present, home appliance brands account for more than 80% of new product launches in Suning. Compared with other e-commerce companies, they value Suning's strong dual-line integration advantages and ability to bring goods.
4. Service upgrades to benefit end users. Suning has formulated a "basic law" for a new set of services for the home appliance market: 30365 + 46 services + double-line seven-day return and no reason. The so-called 30365, that is, 30-day return and 365-day replacement; and 46 services cover seven major links such as shopping, O2O service, distribution, after-sales, customer service, return and exchange, green sharing, etc .; can also be returned for two days and no reason Goods purchased online can be returned and exchanged offline, and those bought offline can also be returned by express delivery. The user's eyes are sharp, while Suning allows users to enjoy the benefits while resolutely implementing high service standards that exceed the industry's standards, which ultimately widens the service experience gap with other platforms.
In summary, from the channel to the brand to the service, Suning continues to innovate based on the environment of home appliance consumption upgrades. While consolidating its leading edge, it has also created higher-tech content and higher-standard operations and services for the entire home appliance market. system.
From the perspective of industry development, it is not easy for the home appliance market to reach a high point again in the past two years. Both home appliance brands and retail channels should actively cooperate with a more open mind, seize the historic opportunity for domestic consumption upgrades, and win consumers with better products and services. Because the price war will one day be ended, innovation can create value and more viable products, which may be more worthy of consideration for practitioners.
Bee Eyes Beam Light ,Mini Bee Eye Moving Head,Bee Eye Led Moving Head,Bee Eyes Beam Lights
Guangzhou Cheng Wen Photoelectric Technology Co., Ltd. , https://www.cwledwall.com