Appliance Giant Defection Profits Too Thin Channels To Seek Channels For Voice Self



, Gome’s high growth, high profits are challenged.

In Sanyo Electric

Flat Panel TV

Frustration out of GOME, Suning later. Other strong

Home Appliances

Manufacturers are also planning self-built channels. According to “Economic Observer” reported that Haier Group are discussing the recent cancellation of the Group business stream forward headquarters, instead of or controlled by the Haier Group, the retail channel Shun Electrical Co., Ltd. Henan day. Prior to that, in addition to have its own sales channels Gree beyond, including TCL,


Leading companies such as appliance to create its own channels in order to get rid of the kinds of negative sales situation.

In this context, Gome, Suning Appliance Chain giants such as control of the current situation can continue to maintain high growth, high profit model of development?

Refused to “wage” status

Into 2008, the appliance manufacturer’s living environment has suddenly become difficult, facing heavy pressure.

First sustained inflation to the cost of household electrical appliance enterprises unprecedented pressure on the corporate earnings growth in space. 2008, domestic appliance enterprises are facing cost pressures were greater than in any previous year. Iron ore, copper, aluminum and other raw material prices continued to rise sharply;



Washing machine

National standard in energy efficiency requirements for product enhancement, on the firm’s product timber, process design for greater links will enhance the


Corporate procurement of raw materials prices; new “Labor Contract Law” increased after the implementation of the human cost of home appliances business. These and other domestic appliances Haier gave enormous challenges leading companies, operating pressure surge.

Second, the RMB appreciation, lower export tax rebate adjustment appliance business profit margins. At present, China exports an increasing proportion of household appliances industry, increasingly dependent on export markets, of which the largest share of exports of Haier, the main competitive advantage lies in low labor costs of the low price. 5% to 7% of the RMB appreciation rate will make domestic appliances decreased export competitiveness of enterprises for more than 3 percent, the export enterprises will be in zero profits condition.

In this market environment, the home appliance chain on the appliance giant to continue to strengthen control of the business, which got hit in household electrical appliance industry. They try to maximize the pressure appliance suppliers, appliance manufacturers when dealing with chain stores, often appeared to be inadequate, difficult to digest cost pressure through price increases. From the present situation, Haier, Gree, Midea, Changhong, no price increase household electrical appliance enterprises are big movements are slightly minor, not much profit on the role of business for years. In addition, the numerous slotting allowance, Dianqing fees, advertising fees, site fees, at the end of rebate, promotion fees, management fees is a giant source of profit for home appliance chain model, which is to suppress the development of a stumbling block for manufacturers.

Therefore, if the appliance manufacturers can not change this situation, it will become a giant chain of migrant workers, apparently Haier, TCL and other home appliance giants do not want to see.

And Haier self “Daily Shun” chain sales channels like the face of strong home appliance chain giant, home appliance manufacturers want to “own company”, TCL try the “Happy Tree”, Changhong has experienced “musician Easy “Gree already achieved success through its own channels. Appliance manufacturers to battle a new round of channel, hoping to secure valuable profits.

Voice dispute

Development and growth in the home appliance chain the right to speak for the industry, the increasing expansion of the practice of self-awareness and power, has been hampered with the upstream suppliers of good relations and threaten their survival.


industry experts believe that home appliance chain enterprises to realize that the future competition of industrial chain, competition, home appliance chain in the upstream supply chain should be attached with hundreds of manufacturers, is a very large system, this system should as their allies, can really consolidate its position in the industry chain.

In the face of strong chain giants, such as Haier, Midea this industry leader is not on the strength of no backhand.