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Recently In the past year or two, many home furnishing companies have set goals of 100 billion, benchmarking against home appliance companies Midea and Gree. This is a good phenomenon and shows that some entrepreneurs in home furnishing companies are beginning to have greater ambitions.
In the past, industry entrepreneurs did not dare to dream like this. Big dreams are the prerequisite for great success. I am convinced by entrepreneurs who shout out these big dreams, and I believe that some entrepreneurs will dream about them. Come true, I believe it perhaps more than they do.
If a home furnishing company wants to become a 100-billion-dollar enterprise (this article only refers to product brand companies), and it needs to compare with Midea and Gree, it needs to look at the industry development pattern from a larger scale and understand the situation of Midea back then. How did Gree and Gree become a 100-billion-dollar enterprise? I extended this standard to 20 years. Of course, in 20 years, some giant-level customization companies have not yet emerged here.
I chose two time reference points. One reference point is 2000-2005. This stage was the time when the price war of white home appliances broke out intensively. It was a watershed in the development of white home appliance companies. Midea, Gree, and Haier were here.This stage truly laid the foundation for today’s giant position.
The second reference point is 2017-2021. These five years, from the centralized listing of customization companies to the beginning of the period of great differentiation of home furnishing companies, will also be a watershed in the birth of hundreds of billions of home furnishing companies.
This article mainly analyzes the current price war situation in the home appliance industry from the single dimension of price war, as well as the consequences and effects, so as to serve as a reference for home furnishing companies.
White Goods Price War from 2000 to 2005
How Midea and Gree Liberia Sugar became hundreds of billions of home appliance giants ?
Midea and Gree today can no longer be described as hundreds of billions, but hundreds of billions. But for home furnishing companies, hundreds of billions is still our dream in a ten-year cycle.
Before entering 100 billion, white goods companies Midea, Gree, Haier, etc. went through a long-term price war, which spanned roughly 2000-2005. This price war lasted for a long time Long and very tragic. The situation at that time was that after ten years of brutal development, major companies were scrambling to expand the scope of childbirth, product inventories increased significantly, product homogeneity was serious, and there were many childbirth companies.
In those years, I happened to be in Guangdong. Every time I passed the 105 National Highway, there were many baby delivery shops on the roadside. It was an era when home appliance companies survived or died. That was when a product was in a warehouse, or on the way to the warehouse, whether it was a store’s warehouse or a dealer’s warehouse.
Price war is the only option. If you fight, you can live; if you don’t fight, you will die. But for small home appliance companies, there is no choice. The best outcome is to be acquired, but the opportunity is unclear, and the only thing left is death. Therefore, business wars are really bloodless battles.
As for the details of the price war, time is short and there is little reference for today’s home furnishing companies, but we understand what the consequences of the price war are.
1. One of the consequences of the price war: the number of home appliance companies has shrunk significantly
In the 1990s before the price war, as air-conditioning technology matured, the entry barrier was not high. And consumption is in a period of blowout. According to the annual industrial statistics report and GF Securities Development Research Center data, the number of home appliance baby stores increased from dozens in the 1980s to hundreds in the 1990s.
After a five-year price war in the early 2000s, the number of air-conditioning stores has been greatly reduced. They have either been acquired, become OEMs, or died. Until today, there are only a few domestic air-conditioning manufacturers. That’s all.
There are tens of thousands of home furnishing companies, and there is still a long way to go to centralize.
2. The second consequence of the price war: the giant’s market share increased significantly
According to data from Wind and GF Securities Development Research Center, after the price war, the market shares of Midea, Gree, and Haier air conditioners, Possession calculated since 200037%. By 2005, the market share had increased to 49%. By 2016, the three companies accounted for 65% of the market share.
Among today’s largest customized home furnishing companies, according to data from Wind, the National Bureau of Statistics, and the GF Securities Development Research Center, Oppein cabinets account for 9.5% of the cabinet market, not to mention the whole-house customization, wardrobe market Sophia is the largest, accounting for only 7.5% of the wardrobe market, let alone the proportion of the entire house customization.
3. The third consequence of the price war: net interest rate drops sharply
Today’s Gree Midea has profitability that is enviable by home furnishing companies. Under this scale, Gree’s net interest rate in 2017 is amazing 15.18%, Midea is 7.73%. But have you ever thought that Gree’s net profit margin has dropped to only 2.83% and Haier’s has dropped to less than 2%?
Several major companies in the customization market, with the exception of Shangpin Home Delivery, basically have net interest rates above 10%, which is very comfortable, so the market has just begun to boom in the past two years.
4. The fourth consequence of the price war: the industry has shifted from melee to competition among giants, and industry competition has entered a new era
Under the smoke of the price war, a large number of small and medium-sized home appliance companies died. Gree’s sales increased from 2,000 to 2,000. It rose from 6.342 billion yuan in 2005 to 18.248 billion yuan in 2005. In 2016, it reached 110.1 billion. In 2016, Midea reached 159.8 billion. The market share of air conditioners was 31% for Gree and 24% for Midea. All other brands are 45%.
As competition moves toward the era of giants, companies begin to control pricing power, and the profit margins of giant companies also begin to slowly increase.
The home furnishing giant still has a long way to go to be close to Midea and Gree ten years ago.
Inspiration for home furnishing companies
The competition among home furnishing companies is not a replica of the price wars of the past among home appliance companies, but price wars are a fate that is difficult to avoid in the process of the 100 billion evolution of home furnishing companies.
Regarding whether there will be a price war among home furnishing companies, we must first get rid of two inherent views on the home furnishing industry. The first is the industrial structure view of small companies in large industries. Today, they have entered the big stage. The era of large enterprises in the industry.
Secondly, we must abolish the ideological stereotype that home furnishing companies and home appliance companies have different attributes and cannot compete on priceLiberia Sugar Daddy. Hundreds of millions of home furnishing companies must enter the era of price wars, and how they fight may be different from the simple price and price war methods of home appliance companies.
But in my opinion, home furnishing companies have not experienced even a decent price war, only a small-scale promotion war. But the situation around the home industry market today is very similar to the situation in the home appliance industry nearly 15 years ago.
With excess production capacity, homogeneous products, widespread customization of the home industry, and many competing players, only large-scale pricesOnly by greatly raising the competition threshold can we increase brand concentration at a relatively fast rate.
According to the revenue growth rate of major customized home furnishing companies, compared with 2017, there has been a sharp decline in 2018. 2019Liberia Sugar In 2018, it is estimated that the growth rate will remain at the same level as in 2018, and a subsequent decline will be a high probability event.
2019 is likely to be the first year of the price war in the home industry, and it will last for 3-5 years.
In a price war, whoever fights early will have an advantage, and whoever fights superstitiously will have an advantage.
The future home industry will be a race in fierce competition. Only by winning the brutal price war can we become a 100-billion-dollar home furnishing enterprise. This is the only way!
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As the core technology of the Internet of Things, radio frequency identification technology (RFID) has naturally become the focus of everyone’s tracking attention. Will the rise of the Internet of Things affect the development of the entire RFID industry? Will the release of the Internet of Things be an opportunity for the development of the RFID industry? As an RFID company, 2019-07-23 06:39:17 the Internet of Things smart home industry has made important changes. Smart home development has become a hot Internet of Things application today. Smart homes and smart wearable devices are the fastest growing so far. The rapid development of the Internet of Things industry and smart homes is already an inevitable trend, and users can readily accept the changes in the smart home market. The intelligent transformation of smart home systems 2020-08-20 08:00:35 The circuit design industry will be in the future Semiconductor companies converting to AI dominate the global semiconductor industry (although these companies are growing slowly, and the U.S. is growing slowly). The overall rise of China’s semiconductor industry and the replacement of Liberia Sugar Daddy in the United States still have to wait for some time. More importantly, Chinese semiconductor companies can seize historical opportunities, such as PC processors, and achieve environmental protection and energy saving. Living in the surrounding environment, it can operate interactively according to different situations without user command. Break down the three major performances of smart home companies and the next battlefield in the future. As a new industry, it is at the critical point of an introduction period and a growth period. The market consumption concept has not yet been formed, but with the 2016-12-23 11: 32:18 What will be the next direct source of mechanical power after electricity? During the industrial revolution, the direct power of machinery was electricity; now we are in the third industrial revolution period, but electricity is still a modern social machine LR EscortsThe direct source of energy, I think, if the power is cut off, the entire ancient society will be paralyzed immediately,So in the future, what will be the direct power of machinery? 2019-0Liberia Sugar7-04 23:06:40 Yiguang Technology was invited to join the China International Semiconductor Lighting Forum, and Night coffee Liberians Sugardaddy discusses future industrial development. The international series of forums is the largest annual gathering of the semiconductor lighting industry in China and is expected to lead the world. The semiconductor lighting industry LR Escorts is a new development trend. On the morning of November 2, at the “Car Lighting and Automotive Lamps Industry Summit” topic, invited guests focused on the national semiconductor emerging industry and focused on the future of car lighting. The top ten industries are expected to integrate, and high-quality channels and technical resources continue to be concentrated in listed companies. With a new round of production expansion, competition in the LED industry will still be fierce in the future, but industry concentration will continue to increase, with clear thinking and outstanding advantages. We can see the rise of subdivision industry leaders. Follow up and pay attention to Sanan Optoelectronics, Yuanfang Optoelectronics, Wanrun Technology, Ju2014-12-19 23:53:183G: Value-added business carnival, mobile phone competition is brutal 3G: Value-added business carnival, mobile phone competition is brutal, 3G licenses have been issued for a full anniversary, but people The 3G career I imagined did not come true. On January 13, Premier Wen Jiabao of the State Council presided over the 2010-01-18 09:31:22
519 future environmentally friendly car What will it look like? What will environmentally friendly cars look like in the future? FAW-Volkswagen 2010-04-07 09:08:53
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What will the electronic industry be like in five years?? According to various signs, for most manufacturers in the electronic industry and the global economy, 2012 will be a year full of difficulties and challenges. 2011-11-22 10:46:56
1054 Smart Home: Personal digital privacy protection has become the biggest problem. The future connected smart home will change people’s lifestyle, and it will bring us a lot of convenience. Smart Home The performance will be amazing, but it will also bring important issues about privacy protection 2013-03-21 15:26:05
1490FPGA+CPU will be an important architecture for artificial intelligence based on big data in the future. According to joint intelligent terminals, this method is being adopted. FPGA+CPU will be an important architecture based on big data in the future. An important architecture of the end, changing the entire processor industry 2016-07-28 14:28:00
3357 The Industrial Internet of Things will be the main external reform of the main architecture system of smart manufacturing in the future. In addition to changes in the manufacturing system itself, the focus of this transformation is the link with other systems, such as the integration of OT and IT systems, software and hardware. The integration of true and false is the focus of this wave of industrial revolution. Under this trend, the traditional manufacturing system can no longer meet the needs of the new generation system. Judging from current development, the Industrial Internet of Things will be the main architecture of smart manufacturing in the future. 2018-01-10 15:41:29
4124 The brutal competition in the power battery industryLiberia Sugar‘s situation began to emerge, gradually changing from huge profits to meager profits. In 2017, my country’s total supporting capacity of new energy car power batteries exceeded 37 billion watt-hours, once again becoming the world’s largest However, Liu Yanlong, secretary-general of the China Chemical and Physical Power Supply Industry Association, described 2017 in my country’s power battery industry as “ups and downs” in Nanjing on the 16th, pointing out that the brutal competition in the industry has begun to emerge. From a hugely profitable industry to a low-profit industry 2018-01-18 14:56:57
2979China’s cloud computing market in 2017. New Opportunities Hidden After Brutal Competition After a series of brutal competition in China’s cloud computing market in 2017, Alibaba Cloud is still far ahead in the field of basic cloud services. The Matthew Effect has become increasingly obvious, and the big one will always be the best. It is difficult to change a large format, verticalHowever, there is a lively scene of hundreds of flowers blooming in the field. 2018-01-30 15:55:46
879 innovation will develop into a new normal of future competition. It can be predicted that in the future , the era of Liberians Sugardaddy that competes through “price wars” to gain market share like in the international market will never return. . Focusing on intellectual property rights and relying on innovation and development as a driving force will become the new normal of future competition. 2018-05-22 11:02:30
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The six best-selling smart home products in the world. Currently, smart homes are mainly reflected in the intelligence of indoor appliances. But this does not hinder our bold prediction. Intelligence will definitely become a standard feature of future homes, and intelligence will be an important feature of future homes. 2018-08-02 15:23:18
19223 Smart home will be the next change outlet NEST, Samsung After acquiring SmartThing, Xiaomi, Tencent, Alibaba, JD.com, etc. have all established their own smart home departments. These big guys undoubtedly believe that smart homes will be the next outlet for change. They all want to occupy a high point in the future smart home market. 2018-10-16 10:43:08
793AI chip design targets diverse scenarios. In the future, the combination of software and hardware will be This is a trend. Since 2018, many algorithm-based voice, LR Escorts vision, autonomous driving and other companies have also begun to develop AI chips. To better combine algorithms and chips to target diverse scenarios, the combination of software and hardware will be the trend in the future. 2019-01-04 13:38:01
972 Where will the competition between ARM and RISC-V go in the future? RISC-V can change the existing processor architecture competition pattern dominated by Arm and Intel X86, especially for Arm Impact on embedded markets such as consumer and IOT 2019-07-03 17:35:52
3529 Cross-border integration will be the future trend of the development of the smart home industry. Smart homes are booming. As the location of the important home appliance industry in the Pearl River Delta, the battle for the transformation of the home appliance industry in Shunde, Foshan, adjacent to Zhongshan, into smart homes has already begun. As early as 2014, local industry giants in Foshan such as Midea, Galanz, Chigo, and Herbalife have already implemented “intelligent” strategies. Among them, Midea is the most prominent, and it has successively joined hands with Internet giants such as Alibaba, Xiaomi, and JD.com. Seize the “smart home” market 2019-08-01 15:59:20
471What will be a smart home? The impact of 5G on the home is far more than the replacement of wireless broadband, and more importantly, it will make smart homes more popular. 2019-11-28 11:20:23773 The next ISO standard of the C language will be C2x? The next ISO standard of the C language will be C2x? 2020-02-27 16:40:39
2363 Chaowei Power released three new battery products, which will find a place to stay in the fierce competition. With the retirement of new energy car financial subsidies Slope, the new energy car market is ushering in an era of real competition. Without real products, it will be difficult to win a place in the fierce and brutal competition in the future. As for the energy storage market that is about to open, without sufficient technical reserves. and product research and development matrix, may also miss such a trillion-level market 2020-01-13 11:50:30
What will the future smart life look like when combined with the 1298 smart home system? Smart life has been hotly hyped, so what does the future smart life look like when combined with the smart home magic mirror? Smart Home MagicMirror can be your life assistant. It not only has real-time information, entertainment, and intelligent health monitoring, but also can grasp the weather in real time. Get up, cook, take a shower, and listen to music to bring home 2020-08-05 15:29:02
409AMD memories Zen architecture history, Zen4 architecture may be released in 2021. As for the subsequent development of the Zen architecture, it goes without saying that the successor to Zen 3 will be the Zen 4 architecture, and Zen 4 has also officially appeared on AMD’s new road map. It will still be on the EPYC series server platform and will use a more advanced 5nm process. 2020-07-23 14:52:47
5196 What will the future of smart homes be like? Continue. With the development of technology, better replacement solutions than remote controls have emerged. Now, we can use home wifi and mobile location phones to connect various smart home devices, turning smartphones into remote controls, while the internet can connect all devices. 2020-09-10 10:36:48
2176What will be the development direction of IoT gateways in the future? The development of smart home industry chain. As an important part of the smart home industry chain, the IoT wireless gateway will change in its development. Smart products continue to popularize, and consumers have higher and higher requirements for the hardware performance of smart devices, prompting smart device manufacturers to have higher and higher requirements for wireless gateways. In the future, wireless 2020-12-01 12:08:54
1145Apple CEO LibraryLiberia Sugar a>K: Apple’s biggest contribution will be in the field of physical and mental health. On December 9, Apple CEO Cook pointed out in an interview that the Apple Watch can monitor heart rate, and users will receive notifications when the heart rate is abnormal. Cook said that when looking back on the past and looking forward to the future, Apple’s greatest contribution will be in the field of physical and mental health. Cook said, we think heart rate is always monitored 2020-12-10 16:53:03
1762 The next ten years will be a decade of research on 5G. At the summit, participants called on all parties in the industry to jointly define the evolution of 5G and build a future of sustainable development of 5G. The success of the global wireless communications industry Development lies in the unification of standards and cooperation in the industry chain. The key to 5G evolution in the next ten years should be to define unified standards within the 3GPP framework and accelerate technology maturity. GSMA CTO Alex Sinclair said that each generation of changing location communication technology must 2021-02 -25 10:34:38
1436 Smart home will be a major trend in home decoration in the future. In recent years, Society and technology are constantly developing, so our needs for a better life are also increasing Liberia Sugar Daddy to create a warm and healthy The surrounding environment has become an important direction of social development, and the pursuit of the quality of life tools is mainly reflected in the home. As people’s consumption levels continue to increase, smart homes gradually 2021-05-03 18:15:00
1291 What is the future of smart home? Specifier editor discussed with Omer Cheema, head of Dialog Semiconductor’s IoT business department. Smart home Dialog realizes that smart homes are becoming 2021-08-06 12:00:18
What will be the future development of 2126 voice chips? With China’s rapid economic development in the future, voice chips will continue to ensure steady growth, product performance will continue to improve, and sound quality and effects will reach a new level. , we also hope that the future development trend of voice chips Liberia Sugar Daddy will be more humane and more realistic, so as to serve the majority of Chinese consumers. Providing the most accurate and high-quality products 2021-12-06 15:48:14
563 Mobile phones from the future. What will it look like? Over the past year, the mobile phone industry has emergedWith a large number of new models, the new year has arrived, what exciting new upgrades will the flagship terminals in 2022 have Liberia Sugar Daddy Woolen cloth? Next, I will give you a spoiler on what the mobile phones of the future will look like. 2022-01-11 12:04:22
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