Half of the washing machine market is facing out

The market has shown a recovery growth Since 2012, with the introduction of a number of policies to stimulate domestic demand and the continuation of the policy of real estate purchase restrictions, the domestic washing machine market has entered a “winter period,” and after a period of adjustment, the industry has gradually stabilized. With the development of transition, the market has been able to recover. Data show that the total sales volume of major domestic washing machines during the period from January to July in 2013 was approximately 13.3 million units, a year-on-year increase of 15.78%, and sales increased by 23.70% year-on-year.

In addition, cities of different grades also showed a recovery growth, with sales in primary cities increasing by 16.06% year-on-year, secondary cities increasing by 14.38%, and tertiary cities and fourth-tier cities increasing by 17.22% and 15.91% respectively. In the same period of 2012, except for the slight increase in the fourth-tier cities, the number of major markets was negative.

For the overall performance of the washing machine market, Cai Ying, deputy director of the Resource Development Department of the National Information Center, believes that the recovery growth of the domestic washing machine market from January to July is based on the negative growth of the same period in 2012, if compared with the 2011 data. This year, the overall growth of the washing machine market is not satisfactory. It is still under the influence of real estate regulation and control, the withdrawal of energy-saving subsidies and economic slowdown, and overall market demand is weak. However, sales growth higher than sales growth also shows that the market strategy effect of the company's high value-added products is more obvious.

There were still some bright spots in the washing machine market in 2013. The growth rate of drum washing machines was more obvious. The data showed that the full-automatic drum washing machines continued to maintain a good growth trend on the basis of growth in 2012. Sales and sales increased by 34.22% and 34.98% respectively year-on-year. In comparison, the volume of semi-automatic washing machines fell sharply, with sales falling 30.63% year-on-year, and sales falling 23.98%.

Analyze its reasons, since 2013, some companies launched the universal drum washing machine also stimulated the needs of the incremental market. In the competition with the Washing Machine, the drum washing machine has begun to take advantage, its attention has always maintained a high level, and has shown a gradually rising market trend, but also the focus of competing for the major manufacturers.

The new energy efficiency standards have brought tremendous pressure. With the deepening of the product structure adjustment of washing machine companies and the continuous improvement of the consumption level in the urban market, the growth momentum of high-end washing machine products is even more pronounced. Data show that sales and sales of high-end washing machines increased by 34.82% and 35.99% in January-July 2013, respectively, and their market share in sales volume continued to rise for three consecutive years, of which 23.15% accounted for from January to July 2011. In the same period of 2012, the proportion increased to 26.46%, and the ratio reached 30.81% by 2013.

In response, Jin Liang, deputy general manager of Gome's white-electricity business division, said that according to the feedback on consumer demand in stores, with the acceleration of the pace of life, consumers have higher demand for the capacity and efficiency of washing machines, and large-capacity washing machines gradually become Mainstream consumer trends. According to the statistics of the Gome retail terminal, the sales ratio of washing machines over 7kg and drum washing machines over 8kg has increased from 40.62% in 2012 to 52% in 2013 (January-September). It can be foreseen that more than 7kg washing machines will become mainstream products for market demand in the coming period of time.

At the same time, affected by the implementation of energy-saving and benefit-subsidy policies at the end of May this year, energy-saving and environmental protection concepts have gradually become popular, and first and second-class energy-efficient washing machines have also begun to receive more attention from consumers.

People in the industry believe that on October 1 this year, the new standard for energy efficiency of washing machines, the “water efficiency limit value and rating of electric washing machines” (G B12021.4-2013), will be formally implemented. Compared with the current standards, the new standard raises the requirements for the limit values ​​of the power consumption and water consumption of washing machines by several steps. Although all of them are implemented with five levels of energy efficiency, the specific requirements are substantially increased, especially drum washing machines. This means that The access threshold of the washing machine market will rise accordingly, which will test the comprehensive capabilities of the washing machine companies in technology R&D, product structure adjustment, cost control, market distribution, and other aspects, and the market pressure brought by it should not be underestimated. At the same time, the improvement of standards has also given companies more room to compete in the high-end areas.

It is understood that the washing machines produced after October 1 this year must meet the requirements of the new energy efficiency standards. Products that are produced before October 1 this year and do not meet the new energy efficiency standards will have a one-year transition period, that is, by 2014. Before October 1, all washing machines that do not meet the new standards for energy efficiency will no longer be sold.

"Preliminarily estimate that more than 60% of drum washing machines on the market will face outflows," said a person in charge of the China Household Electrical Appliances Association. More than 50% of washing machines on the market will not be sold. This means that there will be large quantities of washing machines, especially small brands that are not well known, and will be eliminated in the new round of industry reshuffle. "This pressure on the washing machine market cannot be underestimated."

Brand competition landscape changes The brand competition landscape of the washing machine market also showed subtle changes in 2013. Despite the overall market sales ratio, domestic brands have an overwhelming advantage over imported brands, but imported brands in terms of share growth, product pricing, etc. Highlights competitive advantage.

The data shows that domestic brands accounted for 62.97% of sales in January-July 2013, compared with 64.73% in the same period of last year. Foreign brand sales increased from 35.27% last year to 37.03% this year. In terms of price, the average unit price of imported branded washing machine products at 4,240 yuan/set is much higher than the average unit price of domestic brands at 2,276 yuan/set. If the drum washing machine, for example, the average price of imported brands is 4240 yuan / Taiwan, the average price of domestic first-line brand is 3528 yuan / Taiwan.

The price position of more competitive space led to a significant increase in the sales ratio of imported brands in the washing machine market in 2013. Data show that the proportion of sales of imported brands increased from 46.44% last year to 47.77%.

Cai Ying believes that although the domestic brands have a stable competitive advantage, the imported brands have long maintained a focus on exquisite designs, humanized functions, and technological innovations that have made some consumers who prefer foreign brands hold more of their own. With high loyalty, imported brands are less affected by market fluctuations in product pricing and have a stable advantage.

In the long run, washing machine companies should improve their overall competitiveness by both improving product quality and building brand competitiveness. In fact, currently the top three washing machine brands occupy an overall market share of 60.02%. The top ten washing machine brands have occupied 92.09% of the market share, indicating that the industry brand concentration is relatively high, and from the perspective of product structure changes, Some of the top three brands are active in product innovation in the direction of high-end, smart, and so on. Leading companies’ technological innovations also lead the industry’s overall technology upgrade. The results of innovative innovations such as large-capacity, energy-saving, water-saving, intelligent, clean, silent, and antibacterial have been reflected in varying degrees in some of the newly introduced products.

It is foreseeable that with the implementation of new energy efficiency standards for washing machines, leading companies with innovative R&D advantages will have a more favorable position in the competition. On the other hand, the stringent requirements in the new energy efficiency standards will cause some SMEs to face technical and cost problems. The gap between brands in the washing machine industry may increase as a result, after the exit of home appliances and other policies resulted in the elimination of the last round of the market. A new round of brand competition and survival of the fittest is beginning.