How traditional home appliance manufacturers embrace the Internet+ era

The relative saturation of the market, excess production capacity, household appliances to rural areas overdrawn the consumer's consumption... When we talked about home appliance development prospects with home appliance manufacturers in 2015, we heard most of the above discourse. While some home appliance manufacturers complain that the home appliance market is becoming more and more fierce, and that it is becoming increasingly difficult to make money, while other home appliance manufacturers feel that it is difficult to earn money, they have already felt the crisis of life and death, which has caused them today. Who is the culprit?

"Internet +" has completely changed the home appliance industry, and the time of change is earlier than the Prime Minister mentioned in the government work report. In the wake of the wave of the Internet, the competition in the Chinese home appliance industry is changing from a cold hardware competition to a competition model of “set software, hardware, content, service, and operation into one” and various types of “breaking” models to the original business model. "Innovation" emerges in an endless stream and is re-establishing the industry's competitive landscape.


Traditional home appliance manufacturers are eager to embrace the Internet

In the era of Internet+, there are not many traditional enterprises that can keep pace with the development of the times. Even the presidents of state-owned banks complain that their industry is now a vulnerable group. The impact of Internet companies is undeniable, not to mention that they are already market-oriented. Mature traditional home appliance industry.

The essence of "Internet Plus" is the online and digitalization of traditional industries. Under such circumstances, if the traditional home appliance manufacturing industry does not accelerate the transition to the Internet, it is bound to be a dead end. In the future, the competition in smart home appliances will also expand from the competition between product hardware and price to the content, operation and service platform competition.

Haier is one of the domestic household appliance companies that entered the Internet lane earlier. After 10 years of Internet transformation, Zhang Ruimin still frankly stated that he is still full of uncertainties about the future of Internet reconstruction. Sex.

At the beginning of this year, Haier held a celebration of the 30th anniversary of its founding. Haier, which started its business from the day of the year, did not deliberately create a celebration atmosphere. Instead, they convened a seminar on Haier's Internet model innovation, and invited scholars and professors in academic circles to help Zhang Ruimin’s latest “change”.

In the exhibition area outside the exhibition hall, Haier Smart Oven, Air Rubik's Cube, Raytheon Notebook, Smart Wine Cabinet, Modular TV, Smart Home Kit, 3D Printer, No-Cleaning Washing Machine and other products were displayed in the recent year. Each booth was exhibited. Equipped with a smart phone and a display to demonstrate the app for these home appliances. Most of these products belong to Haier's internal "Little Micro" company. As of the end of last year, the number of registered employees of Haier has decreased from the previous year, and the number of small and micro companies that have been firmly bound to Haier has reached 2,000.

Haier’s final goal of reform is to cancel the middle management, leaving only three main players: platform owners, small micro masters and creators. All points of Zhang Ruimin’s revolution in Haier are dispelling the attributes of Haier as a manufacturing enterprise, and may eventually dissolve Haier’s original clear corporate border.


The thought of destructive innovation left to the industry

From Haier’s destructive innovation, we can see that the willingness of traditional home appliance manufacturers to embrace the Internet has exceeded our imagination, but from the current point of view, all manufacturers have embraced the Internet through the “millet + beauty” approach. Not realistic. Therefore, the traditional home appliance companies like Haier mostly use the method of disarming the brawn to achieve transformation.

In the "Internet +" era, home appliance companies parted ways

With the advent of the "Internet Plus" era, the home appliance industry has presented two development paths. One is the hardware route, which is mainly dominated by foreign brands. For example, TV companies with Samsung, LG, Sharp and other upstream LCD panel resources highlight the “hardware” advantage, and vigorously develop OLED TVs, QD TVs, and curved surfaces. TVs and other new display technology products, domestic Hisense, Skyworth and other brands are also walking on this hardware route, the regret is that it can always follow the upper reaches of foreign resources to grasp the foreign brands.
Another is the "software definition and integration into the hardware," the home appliance intelligent route, which is mainly led by another way of domestic brands, mainly Changhong, Haier, Konka and other brands. China's domestic Internet industry is developing more and more powerful. Some Chinese TV companies are closely integrated with the Internet industry and come out of their own characteristics.


Thinking about two different development paths

"Internet+" represents a new economic form, which is to give full play to the optimization and integration of the Internet in the allocation of production factors, integrate the innovation results of the Internet into all sectors of the economy and society, and enhance the innovation and productivity of the real economy. The formation of a wider range of new forms of economic development based on the Internet as an infrastructure and implementation tool.

Future consumption upgrade will continue to be the main driving force for the development of China's home appliance industry. High-end, atmospheric, and upscale smart appliances will gradually become the main consumer trends in the home appliance market. In the future, people will enjoy the time-saving, convenient and controllable smart home appliances. Smart home appliances will bring unprecedented home experiences to people, and home appliances in the future will all be smart and connected. Although these scenes are only imaginations for the future and stay at the conceptual level, they are indeed the future direction of smart home appliances.

Innovation is still revolutionary

For home appliance manufacturers, it is the loss of their channels and discourse that are currently causing their most anxiety and fatality. The grudges and enmities between vendors and stores now have more terrible enemies. In 2009, Haier’s online transaction volume reached 54.8 billion yuan, an increase of 2391% year-on-year. This seemingly not bad data, less than Tmall Mall "double 11" day's transaction amount.

True, the enemy is the Internet.

The appliance industry is not the only industry in the Internet that undermines the rules of the game, but the result is already in front of us: the ecosystem has been completely changed. In the face of emerging spoilers, home appliance manufacturers may not be at all equal to each other.

One thing that can be affirmed to the present is that the kind of discourse power held by the home appliance manufacturers has ceased to exist.


Internet company routines

Those newcomers to the internet do not care how many years you spent on making electrical appliances. When the e-commerce business is not yet strong enough, Gome and Suning can also use the "lowest price on the Internet and cheaper" promotion in the store. However, when Gome and Suning have launched large-scale advertisements for diversion from home appliance manufacturers, we have found that: E-commerce has completely eliminated the information asymmetry that originally existed in multi-layered distribution systems.

When the main shopping space is transferred from the physical store to the virtual e-commerce, flow replacement channels become the lifeblood of product sales. Originally, cheaper refrigerators, color TVs, and washing machines were purchased in big cities. As long as they were able to connect to the Internet, consumers would see the same price. The difference is nothing more than whether logistics can guarantee timely delivery. Retailers can no longer sell 2,000 yuan worth of goods to 5,000 yuan.


Traditional corporate CEO dialogue Internet company CEO

With regards to the current Internet+ topics, the author also interviewed two industry leaders: Xu Dongjian, CEO of the Chinese Kingdom, and Yang Yong, the CEO of Hulu Technology. These two are typical examples of traditional enterprises and Internet companies. Representative, when I threw out the internet, see what they say.

Han Guozi CEO Xu Dongjian

In today's society, a trend of Internet thinking has gradually emerged. Traditional enterprises should always reflect on whether they keep pace with the development of the times. The road to innovation will never stop. However, on the other hand, it is not only that Internet thinking can cure all diseases, but also it requires down-to-earth, industrial prosperity! Innovative thinking and practical work can go further and further, and Lao Xu hopes that you will all be able to take a solid land. Looking at the stars!

Hulu Technology CEO Yang Yong

Smartphones are products that accompany the Internet era. The spirit of the Internet must be better reflected in smart phones. In a short period of time, smart phones have gone through the 1.0 and 2.0 eras and in a short period of time will also be Into the 3.0 era, even if the gourd phone does not become a representative of the 3.0 era smart phones, there will be 3.0 mobile phones this year, 3.0 mobile phone competition is a seamless connection and user experience, which is the core development direction of the 3.0 smart phone.


Home appliance industry rebuilds competition

Under the impact of the Internet wave and cross-border competition, the product form, business model, competitive landscape, and industrial ecology of the home appliance industry are still in the “time”. The competition in the smart home appliance industry will become more intense and the competition will become systematic.

In Europe, America, and Japan, some traditional home appliance giants focused on hardware are gradually withdrawing from the market due to the great changes brought about by the era of smart home appliances. The competitive landscape of the home appliance industry in China and even the world is being rebuilt. In the “Internet Plus” era, the survival of the fittest is the hard truth.

Years ago, Zhang Ruimin, who was also the director of the state-owned enterprise, smashed a refrigerator with substandard quality. Today, Zhang Ruimin claims to destroy the company itself. In the 30 years, there were many star entrepreneurs in the same generation as Zhang Ruimin. For example, Ma Shengli, the “first-rate contractor for state-owned enterprises,” Zhou Guanwu, who “breaks the iron rice bowl for state-owned enterprises” in Shougang, implemented the “bonus system” in Zhejiang Haiyan shirt factory. Step Xinsheng. Today, most of them either fade out or retire. Zhang Ruimin, who came to Haier 30 years ago, is still looking for a way out for Haier.

We may not have to worry too much about saying "shut down the enterprise." In the thirty years of Haier's story, this is the fifth time that Haier has changed its "management model" or changed its "management model name." In Haier's repeated claim that it is facing a "life and death hurdle" and is eager to establish itself as an Internet company, we are more willing to clarify a question: What are the major problems Haier has encountered?

In fact, Haier's performance in the past year is not bad. The rotating CEO Zhou Yunjie announced in his opening remarks that Haier’s annual global turnover reached 100 million yuan, an increase of 11% year-on-year and a profit of 100 million yuan, a year-on-year increase of 39%.


Who is the predicament of the home appliance industry?

Haier has experienced many storms, but in the past, every time the waves hit the sand, Haier seems to have found a relatively correct solution. However, there is a problem that home appliance chain stores and home appliance manufacturers must face: the market has gradually become saturated. The international financial crisis also affected the export of bulk appliances after the year. Under such circumstances, Haier launched a rural household appliances flow network during the implementation of the subsidy policy for home appliances to the countryside. Haier's village-level liaison stations, after-sales service outlets and 10,000 service agents have been spread to most rural areas in the process.

Although Haier has never started late in e-commerce and self-built channels, now it is not the opponents who have been fighting for many years in the channel, nor are they already relatively saturated markets. Gree, Midea, TCL and other home appliance manufacturers face the same difficulties as Haier and even worse.


Internet +, or + Internet

Many traditional industries are afraid of being watched by Internet companies. These new manufacturers appearing out of thin air do not need to go through the process of transformation. They were born from the beginning in the reconstructed sales system. They were born and exposed on the Internet. In sales, there is no physical store.

You can say that they are "outsiders," and they can also be called "spoilers." They are menacing, as if the newborn calf is not afraid of tigers, claiming to overturn every industry, cell phones, televisions, bicycles, sockets, and even bathroom scales. There is no product that these newcomers do not want to redefine.

Compared with traditional home appliance manufacturers, they are more flexible and more familiar with the new rules of the game: this game rule is toss them out. Large companies such as Haier, by dismantling themselves trying to adapt to the new rules, have already become pioneers in traditional home appliance manufacturers. In the face of smart new products, traditional household appliance manufacturers and new manufacturers themselves are not on the same starting line. After the new manufacturers have been out for a long time, traditional household appliance manufacturers have discovered that the competition has already begun.

In the home appliance manufacturers are still arguing who is the "white goods" industry first, who is the "black home appliances" industry first, Internet companies and even start-up companies have been smart sockets, smart bulbs into the game, users have not even care what categories belong to " "White goods" or "black appliances" have nothing but color TV. It is important, smart? easy to use? Is it cheap?

Therefore, many traditional household electrical appliance companies that have been struggling to make profits have been pleased to accept the olive branch that Internet companies have invested. For large companies like Haier, it is very difficult for them to take the road to be acquired. They are more willing to complete the transformation into a butterfly through their own efforts.



At the end of last year, Xiaomi made a share of US$1.2 billion in the United States. These new smart home products of the United States are likely to have the usual characteristics of Xiaomi's production: slightly higher than the market's configuration (at least parameterized) standards, the price is lower than the market average price, and has a certain ability to cooperate with the smart phone - although so-called Collaboration may be as simple as remote switching.

Xiaomi and Midea cut into the smart home from the perspective of Internet companies, and from the traditional manufacturing into Haier smart home, who can get more users, or who can survive in the "popular" of this smart home, perhaps It's not that the products are not good enough, but whether the channels are open and whether the brand can support prices.

The test of the United States and Haier in the Internet+ era has adopted different swimming strokes. Their development direction also expresses the market’s thinking on home appliances + Internet or Internet + home appliances. Whoever swims faster will swim more. Well, I'm afraid that no one has yet given a definitive answer. After all, the game has just begun.


Smart Appliances Will Do Destructive Innovation of Old Business Models

In the “Internet+” era, the competition in the home appliance industry has evolved from a pure hardware competition to a system integration level. Smart has expanded the functionality of a single home appliance. Taking a smart TV as an example, users can uninstall and install their favorite applications. Make smart TV a personalized home entertainment device. In addition to watching video programs, smart TVs also carry more functions such as games, shopping, social networking, and education. The role of smart TVs in the industrial chain has increased and the profit model has been expanded. Smart appliances that cover more products are completely changing people’s lifestyles. Behind this huge change, many market segments are hidden.

The traditional business model of relying on one-time sales of hardware equipment to make money will be crushed by the “Internet+”. After entering the home appliance industry, IT and Internet companies attempt to “carry over”, and traditional household appliance giants have also made new strategic adjustments. Actively embrace the Internet in an all-round way, subvert the traditional thinking logic with “Internet +” R&D thinking, conduct “destructive innovation”, and fully mine the value of data under the precondition of ensuring user information security, “terminal + data + content + service "The new business model is in the smart home appliance industry.

For example, in Changhong's new three-axis strategic system, for the first time, intelligence, networking, and collaboration are proposed as the direction of force for the new three-coordinate system, through various types of intelligent terminals, and networked cloud service platforms. The corresponding big data business model development, and then the introduction of collaborative integrated solutions, eventually activated Changhong original home appliances, mobile phones, communications, information and other home appliances business in the Internet era, thus releasing new competitiveness in the consumer market.

The year of transformation of traditional home appliance enterprises

After entering the era of smart TVs, the color TV industry is moving from “watching TV” to the current “playing TV” and is transitioning to the “use of TV” integrated into the smart home field. Therefore, before the industry's many game rules and operating models have to be re-introduced, and re-find new profit orientation. The more companies understand users, the closer they are to users, the more profitable it will be.

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