Small household electrical appliances market competition: the strong king weak delisting - small hou

Published: 28th March 2011
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08 years, a stronger yuan, rising production costs and other factors, many of the traditional

Small appliances Product growth rate slowed, and some products even a more significant negative growth. Together in the second half, they are facing the global financial crisis, resulting in a decline in consumer demand worldwide. At the same time, small



Home Appliances Energy efficiency standards to be announced, at least two percent of enterprises will as substandard, less profitable and technology missing face 'survival test'. "In this adverse environment, upstream and downstream of the double pincer attack, the Chinese vice chairman of the Committee of Home Appliance Hong Shibin that face not only life and death of small home appliances the College Entrance Examination, and this year will become a watershed for small appliances, the phenomenon will be competitive powerful king, the weak delisting!



First, from the upstream manufacturing analysis, RMB appreciation, rising labor costs and so detrimental to human factors, but for large, medium and small appliances for small businesses, but it is stand on the same starting line, before a number of small and medium small appliances enterprises can gain market price advantage. But this year, this strategy will not come true, because many costs rising, these small enterprises do not have the advantage of small appliances, and some small household electrical appliance enterprises with scale, but accounted for the initiative, the matter from the raw material procurement, certain size of small household appliances enterprises, procurement can not only cut costs, then you can make a lot of cooperation with suppliers to lower the risk. Secondly, in terms of human cost of labor, previous small appliances for small to medium enterprises, can play policy edge ball, for the welfare and security of staff can be reduced with the reduction, but now must be the same scale enterprises. So because of this some small appliances are small and medium enterprises that previously did not competitive advantage.



Secondly, to analyze consumer demand in the downstream market is faced with the global economic crisis, the product will be a serious decline in demand. At this point, the small household electrical appliance enterprises in the conditions of the smaller cake, consider the problem is sub-cake. To this end, the premise of this sub-cake, small and medium enterprises in the small appliance market, with the size of small household electrical appliances enterprises have to compete, its business in the value chain, will be a huge difference, because both are from the marketing tools, product technology, channels and terminal locations, etc., small and medium enterprises will be disadvantaged small appliances, small household electrical appliances so that for small and medium enterprises will be a fatal blow, will inevitably lead to some small and medium enterprises are facing small appliances out of danger!



Furthermore, from the perspective of business than

TV , Air conditioning And other large household appliances, small household appliance industry is obviously insufficient to withstand risks, because the small appliance industry barriers to entry low, many small appliances are not very generous funding chain, when confronted with such a money crunch, not a good prerequisite for market , the capital chain, but one problem, unable to pay wages to the supplier payment can not be fulfilled, a number of non-small-scale household appliances business, will face the risk of collapse.



Above, so whether it is manufactured from the upstream and downstream consumer demand, small and medium enterprises of small appliances is the life and death will face the College Entrance Examination, as in this harsh environment of competition, not just the golf business is the financial strength, technical capabilities, marketing capabilities, as well as management skills, ability to control risk and so on. To this end, the next two years will certainly also present two-tier world of small appliances, get over it will be sunny, but very dangerous to the would face delisting!





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