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Will a new batch of industry leaders emerge in the home appliance industry over the next five years?
Publish Time:
2021-06-25
The flags on the city walls are changing. Entering 2021, some outsiders paying attention to the home appliance industry suddenly discovered that some leading brands and dominant players in some home appliance categories and fields have begun to experience new changes. The most well-known of these is the change in the top spot for air conditioners, which has remained unchanged for over 20 years.
The flags atop the city walls are constantly changing. Entering 2021, some outsiders paying attention to the home appliance industry suddenly discovered that new changes and replacements were again occurring among the leaders and dominant players in some home appliance categories and fields. The most well-known of these is the change in the top spot for air conditioners, a position unchanged for over 20 years, now welcoming a new leader.
The change in air conditioning giants only signals the beginning of a new round of transformation in the home appliance industry's brand structure, market order reconstruction, and consumer trend leadership. Those in the home appliance industry can foresee that the industry will welcome a batch of new dominant players in the next 3-5 years. In addition to new leaders emerging in various categories, the overall brand structure of the home appliance industry will also see a group of "familiar strangers."
Because the current new round of brand restructuring and market order reconstruction in the home appliance industry is showing a systematic and mature trend in two dimensions:
First, using suite and solution-oriented products as a breakthrough point, supported by multi-brand and multi-category collaboration, ultimately leveraging platform power to achieve rapid rise in a particular market category. This is what the home appliance industry has long emphasized: using diversified capabilities to address the competitive gap with specialized companies, and using full-category products to compensate for deficiencies and disadvantages in single categories.
Of course, this doesn't mean that all companies should abandon specialized business paths and comprehensively implement diversified business expansion. Rather, it's about utilizing the systemic advantages of "diversification" to seize changes in current household and consumption trends, such as the pursuit of "integrated home appliances and home decoration" and "promoting the integration of home appliances and pre-installation," to solve the problem of unclear "competitive advantages" commonly faced by many home appliance companies in the era of single-product dominance, and the "realistic embarrassment" that could not be overcome in the short term.
Second, using experience and service as new marketing breakthroughs, supported by scenarios and ecosystems, ultimately breaking away from the hardware competition of home appliance products and establishing a new business logic centered around users' lives and experiences. It must be recognized that the hardware growth ceiling of the traditional home appliance industry is very clear and within reach. Relying solely on low-priced hardware and large-scale volume growth is unsustainable for any industry or company; new products, new markets, and new fulcrums must be sought.
Whether it was Panasonic, Toshiba, and Hitachi in Japan, or later Electrolux, Whirlpool, Bosch Siemens, and Philips from Europe and America, as well as the once globally renowned Nokia and Motorola, they were all once dominant players in their respective industries. Their choice to withdraw from or proactively transform their main businesses or seek new ventures reflects their desire to maintain control over market operations and competition while still having room for choice and breakthrough.
Similarly, for Chinese home appliance companies, the series of market operation and growth problems encountered in recent years are not problems of the industry or market itself, but rather problems of industry, market, and manufacturers needing to reposition and restart at a certain stage of development: some less competitive companies will withdraw, some companies with ideas will grow, some industry giants will build new moats, and some new entrants to the industry will challenge and break through; however, many consumer demands and trends in the first-tier market are constantly changing.
Currently, we must acknowledge that for the Chinese home appliance industry, at least in the next 5-10 years, there is no need to worry about encountering new challenges and replacements globally, nor is there a need to worry about quickly entering the channel of alternating dominance seen with "European, American, Japanese, and Korean companies" in the past:
First, the completeness and maturity of China's home appliance industry supply chain and manufacturing chain have not yet encountered any new competitors or challengers; the competition system centered on intelligent manufacturing can at least drive the strong growth and development of China's home appliance industry in the global market for the next 5 years or even longer.
Second, over the past 40 years, the Chinese home appliance industry has been learning from the development paths and models of Europe, America, Japan, and South Korea, even reflecting on and breaking through the development of many foreign companies, but it has also been exploring its own unique differentiated competitiveness, not simply imitating, but constantly breaking through and creating. Therefore, the situation that China's home appliance industry will create in the future will definitely not be a repetition or rehearsal of Europe, America, Japan, and South Korea.
Furthermore, the series of operational difficulties and challenges faced by current home appliance manufacturers are mainly due to external factors such as user needs, market environment, and economic cycles, not the decline in internal industry competitiveness. From this perspective, the market order and competitive landscape of major companies and brands will inevitably be in constant flux, but the overall industry scale and space will remain within a certain range.
Ultimately, the industry will welcome a batch of new dominant players and create a new situation! Currently, any company in the market that is willing and dares to act has a chance!
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