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Home appliance companies are launching a new round of channel battles
Publish Time:
2021-06-23
Starting this year, the channel strategies of many home appliance companies have changed again! Pinduoduo has become a platform that many leading companies dare not ignore easily. Similarly, new channels such as Douyin, Kuaishou, and Xiaohongshu are quietly entering the home appliance retail industry, hoping to get a share of the pie.
This year, many home appliance companies have changed their channel strategies! Pinduoduo has become a platform that many leading companies cannot easily ignore. Similarly, new channels such as Douyin, Kuaishou, and Xiaohongshu are quietly entering the home appliance retail industry, hoping to get a share of the market.
Recently, a product called "Huasu Air Conditioner" on Pinduoduo has attracted the attention of many users. Although the Huasu brand is unheard of, the product description mentions that it is produced by Aux Group.
Similarly, KKTV, once an internet brand of Konka TVs, has now become a comprehensive appliance brand on the Pinduoduo platform, covering water heaters, household appliances, and kitchen appliances such as range hoods, integrated stoves, and gas stoves.
In addition, last year, Midea's comfee brand water heaters were already sold on the Pinduoduo platform. As Midea's internet brand for young people, the official flagship store of Bougainvillea has landed on Pinduoduo, including 9 major categories such as kitchen and electrical appliances and household appliances. Similarly, Haier Group's Leader and Commander official flagship stores have also landed on Pinduoduo.
A home appliance factory manager told the home appliance industry circle: In the past, everyone was still struggling with whether to choose online or offline channels? How to choose and how to take sides? Later, they came to a conclusion: both online and offline are necessary. Therefore, some companies launched internet brands to achieve differentiation from their main brands in order to compete online; because all companies cannot abandon online channels but also cannot let online platforms undermine offline channels.
At that time, brand differentiation became a common practice for many companies to compete in both online and offline markets, including Hisense TV launching VIDAA, Konka TV launching KKTV, and Skyworth TV launching Coocaa. Later, Midea Group launched Bougainvillea, and Haier Group launched Commander. Although Gree air conditioning has not launched an internet brand, there are market rumors that Gree will launch Da Song air conditioning to respond to channel diversification competition.
However, in the past year or so, with the accelerated fragmentation of home appliance retail channels, especially the rise of Pinduoduo as a new retail channel among retail giants such as JD.com and Tmall, it has caused many home appliance companies to struggle again: on the one hand, Pinduoduo is an important retail platform with undeniable momentum; on the other hand, its low-price image is deeply rooted in people's minds.
The aforementioned home appliance factory personnel said, "Since the end of last year, many home appliance companies have been struggling with whether to firmly hold onto the JD.com and Tmall platforms and abandon Pinduoduo. Now it turns out that it is impossible to abandon Pinduoduo; it cannot be ignored because there is a market and demand, and competitors are quietly laying out their strategies."
Faced with this situation, many home appliance companies have once again adopted the strategy of launching new sub-brands. Facing these new sub-brands of home appliance companies, which lack brand appeal, Pinduoduo, as a platform operator, is also very flexible. It allows the main brand information to be included before the sub-brand name, and then the products are sold at the low price of the sub-brand without disrupting the pricing system of the main brand. The combination of the two has created the current new situation for home appliances on the Pinduoduo platform: new sub-brands of large companies are seizing orders with ultra-low prices.
For home appliance companies, Pinduoduo is just a snapshot of the operational difficulties caused by the rise of new home appliance retail platforms in the past year or so. In fact, Douyin, Kuaishou, and even Xiaohongshu all want to enter the home appliance retail market and "get a piece of the pie." This has also triggered a new round of changes in the home appliance industry, that is, a new situation may emerge in the future:
Home appliance companies' main brands will have the same price across all channels, online and offline; however, for different mainstream retail platforms, such as JD.com, Tmall, and Pinduoduo, there will be a customized sub-brand, and then compete for user orders and intercept competitors on various platforms. Ultimately, it will lead to another round of intense market reshuffling and brand consolidation.
So, how will online platforms such as Taobao, Suning.com, and Gome launch a new round of offensive and defensive battles? This is becoming a new business challenge. The home appliance industry circle sees that home appliance companies, which have been doing "multiple-choice questions," are now seeing the scales of market operations begin to tip!
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