Household appliance companies develop their own channels to develop

When e-commerce in the price war more and more war, the traditional chain of channels on the line, the offline business to fight each other, appliance companies in the fierce competition in the market has been quietly building their own channel network. In particular, in the third and fourth-tier markets, where mainstream channel providers have not yet fully covered, home appliance companies are quietly expanding in the gap between traditional chain stores and local distributors.

Self-built channels face internal difficulties

When referring to the history of self-built channels of home appliance companies, we will trace back to the history node where Gree and the chain stores broke apart in 2004. The high cost of entering a chain store is also regarded as an important consideration in self-built channels of home appliance companies. one. Peng Yi, director of research and marketing at Zhongkang Market, told the reporter that from the past development, the relationship between the company and the third-party channels has always been "separate and integrated." He said that the channel is the export of products. As the market environment changes, the cost of some channels will become higher, or the risk will become higher. Enterprises will choose channels according to their own circumstances.

After Gree, many companies also increased their efforts to build their own channels, such as TCL's Happy Tree Chain and Changhong's Lejiayi. However, it is understood that TCL's happiness tree is eventually incorporated by its multimedia, and Changhong Lejiayi is no longer operating. It seems that Gree's successful case of self-built channels in the air-conditioning market has been difficult to replicate so far.

In fact, for companies, self-built channels are an integrated model for enterprises to create links from production to manufacturing to sales. Therefore, even if you do not consider external factors, it is reasonable for companies to build their own channels. But this is not easy. Chen Bingfeng said: "In the city's self-built channels, affected by high costs such as rent, hydropower, and talent, city stores will face certain difficulties when they start their operations; while in rural areas, specialty stores are geographically remote and relatively loose. The management of the company put forward higher requirements.” In this regard, Peng Yu agreed. Household appliance companies face many difficulties in logistics, personnel training, profitability and other difficulties in their own channels.

However, this is only a "internal concern", home appliance companies also face "outside difficulties." In addition to relying on the original business system, enterprises will also find agents and distributors to sell their own products. With more and more business models, channels have become richer. It is precisely because of the abundance of channels that the market space is narrowing. In the primary and secondary markets, e-commerce channels have rapidly emerged, and a round of price war between e-commerce companies has driven online platforms even further. In the tertiary and tertiary markets, major chain stores such as Gome and Suning continue to sink channels, and even the electricity suppliers have expressed their commitment to these markets, coupled with a large number of decentralized dealers and partners as competitors. Even in the 5th and 6th markets, the channels have been laid out. Therefore, the cakes left for home appliance companies are getting smaller and smaller.

Urbanization accelerates opportunities

As social needs change, companies are expected to welcome development opportunities in a diversified and segmented channel market.

Although the power of channel providers has continued to spread, the market potential has been continuously tapped, especially in the vast rural market. According to the survey data in the Yikang market, only the rural areas below the county level contain 200 billion yuan to 250 billion yuan in home appliance market volume. Therefore, self-built channels in the third and fourth markets are not without opportunities for enterprises.

Peng Yu said that when the economic and social environment has stabilized, the channel structure will stabilize. China's economy and society are undergoing major development and changes. Urbanization is accelerating and social needs are changing. For home appliance companies, change means opportunities, even if the company seizes the opportunity to take the lead in a diversified and segmented channel market.

A responsible person in the marketing department of a color TV company in China told the reporter that the company's self-built channels are mainly concentrated in the second-tier market, which is generally a provincial-level city with a population size of more than three or four million. In these markets, there are some places where chain stores cannot be covered, and color TV companies have a chance. In his view, in the county-level or even smaller market, companies do not need to build their own channels. Because of the limited population here, the construction of channels will result in inconsistent input and output, and there will be stable dealers. Even if the chain store sinks channels to the tertiary or tertiary markets, most of them also choose to join. Household appliance companies are not necessarily willing to participate. Because it will compete with the company's local dealers.

Layout Community Shop Future

The future community stores will mainly serve e-commerce, and will develop into product display, experience and provide after-sales service.

After the emergence of large-scale communities, building community stores has become a way for home appliance companies to enrich channels. According to the relevant person in charge of the marketing department of the color TV business, the community shop is not necessarily built in a bustling area. As long as it is near a large community, the store will have 20 to 30 square meters of floor space. The cost is not high, and the form is simple and varied, and the operation is more flexible.

Chen Bingfeng said: "With the current trend of television becoming intelligent, 3D, and ultra-high-definition, the sense of experience has become the core of new product competition, and self-built channels will be able to better provide consumers with customized services, allowing users to Stores enjoy a unique and personalized product experience, which is difficult to achieve in hypermarkets. At the same time, self-built channels can provide targeted after-sales services.” The above-mentioned person in charge of color TV business marketing also said : "E-commerce is developing rapidly, but there are shortcomings in experience, after-sales, etc. Community stores can supplement them. Future community stores will serve e-commerce and will develop into a place for product display and experience. Provides after-sales service to users and forms online and offline connections with e-commerce channels.”

It is not difficult to see that home appliance companies do not have a big fanfare in their channel layout, but they are also a force that cannot be ignored. Especially in the current era of e-commerce, the company's exploration of new channels such as community stores is likely to become the most critical part of the future channel network.