Luo Qingqi: Chinese appliance era of confrontation into the area economy – household appliances, the
Article by hi joiney
China’s largest TV Company recently acquired the fourth largest enterprise Meiling refrigerator, aroused public concern about the appliance, we will be more eyes on
Changhong Success Operation The White GoodsBrand. The answer can not operate successfully today, we should be concerned about this incident behind industry change: China’s home appliance industry has entered the race economies of scope.
Have to admit that China’s household electrical appliance industry in the last five years has caught up not only increase a stagnation period. With the expansion of production scale, the unit production costs of economic laws is the introduction of a household electrical appliance enterprises in China is full of thorns of the dead end, in a way that our economies of scale are over. Economies of scale rule does not lose its historical significance, like the traditional laws of physics in the traditional physical environment remains the same right to exist, but as the environment changes, we must change the physical laws, the theory of relativity that there is excellent.
China’s home appliance living environment for ten years ago, great changes have taken place, capacity is not unlimited ability to expand demand, a sharp increase in production after the co-ordination capacity and who needs conflict? Modern distribution should be coordinated with the needs of modern manufacturing visible hand, unfortunately, our modern circulation did not grow up with the capacity Bingdi behind the modern circulation has restricted the manufacturing capacity of China’s home appliance optimized, if the Chinese the circulation of early modern development, so manufacturers should demand’re holding the horses reins accurate, but not now, excess capacity can result in inventory and accounts receivable have been subject to over and over the bend of the enterprise should, survive Basically all the big brands that are too debilitating internal injuries and difficult to develop feeling of sadness.
Overseas markets Is not a household electrical appliance enterprises in China started to huge demand for big mouth bag. Scale manufacture of home appliances in China have also been inhibited, either is essential to prevent the “China price” to enter, or is allowed to enter but only a loss of the entry. Original capacity to rely on internal and external competition by the two major issues emerged in the market resistance will be difficult to rely on scale economies.
The external market as the only force driving business growth is a serious mistake, and how bleak the current market environment such gloom is simply to survive. China’s household electrical appliance enterprises rely on the old idea of a “only son”, to enlarge the scale of the global unlimited, but the profit margins in products like blades as of today, this product supported by only son has become weak in the trade business down Weng, multi-lateral expansion of product lines to one-legged beast actually become a star anise in the fish, even if each blade legs are standing on the foundation of this business is relatively stable. Changhong M Meiling was aroused great attention because Changhong fast from a strategic strategy as a rapid transformation of alien, so not so much concerned about the industry in the white M & Chang, Changhong than that in the interest of a strategy shift.
In fact, before Changhong has started at the white goods field extension of suchAir conditioning Products, but move into the symbolic significance of Meiling greater access to many areas of the pitch horn moment increased. This is the objective law of market evolution, look what the appliance industry, who present a product in the holding
Label Selling it in the shake? No, the brand is becoming unrecognizable.Domestic appliance brand, the Age of Dinosaurs has truly arrived: each surviving brand product line by integrating itself into an enormous body of a dinosaur, a dinosaur hands each have hold a license, the next war is a brand of multi-brand transformation
Game Instead of the previous license of the Competition leaflets, each with aCompetition Resources, big companies are beginning to prepare for such a dinosaur era.This era of Chinese home appliance industry, companies benefit you? I think this is a reflection of China’s home appliance industry, helpless, the illusion of time has been lost economies of scale, it is a pity that we in this era of prosperity did not appear to develop China’s household electrical appliance industry, technology generation, and they said, to the era of economies of scope China’s home appliance industry, the last chance of confrontation, in addition, economies of scope on the growth of China’s household electrical appliance enterprises there are upside. Economies of scope refer to the same input, from a single production joint products (joint product of two or more can use the shared equipment, technology and management resources in terms of technical characteristics of the same or similar product) than many Production of these enterprises are associated with different products for each level of output a single product is higher, so that the expansion of product lines within the industry brought about the scope of a group of economic synergies for the industry to find a new way, this will help enhance China endogenous household appliances enterprises competitiveness of China’s household electrical appliance enterprises to change the original will get a solution from the outside will not find strength from their own situation. In this era of competition will change in methods, but our industry can not only to focus on changes in the way competition, the more resources need to macro mode with the new industrial competition concerns, because participation in competitive gaming household appliances industry, there are foreign enterprise.
Luo Qingqi column
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