Japan's home appliance industry lost a large retreat in the Chinese market

Since 2011, Japan’s home appliance has performed poorly in the Chinese market. Sony and other giants have reported losses in the first half of the year. In the third quarter, Japanese home appliance companies have started to scale back operations in China and have made major retreats.

First, Haier reached an agreement with Japan’s Sanyo Electric in July this year. It will acquire its ice-washing assets and sales network in Japan and Southeast Asia for 10 billion yen, and the Sanyo appliance brand will fade out of the market later. Subsequently, Hitachi stated that its TV business will be entirely subcontracted. In October, Sony stated that it intends to sell its stake in the joint venture South Korea S-LCD Co. to Samsung during the year. Matsushita decided to reduce the production capacity of plasma TV panels. The third plasma panel in Amagasaki, Binku-ku, Japan will stop production and the LCD panel plant in Mobara City, Chiba Prefecture will be sold. Sharp and Toshiba will also commission more OEMs.

Why did Japanese home appliance companies retreat in the Chinese market? The reasons may be as follows:

First, the business model of Japanese home appliance companies. Japanese household electrical appliance companies have a strong sense of protection of core technologies, and adopt more vertical business models. R&D is mostly conducted locally. Chinese company's product development needs to be reported to headquarters and licensed, and complex product development processes often result in a shorter product development cycle. Long, it cannot adapt to the rapidly changing overseas market. At the same time, the vertical business model has increased the operating costs of international companies. When China's first-tier home appliance market becomes increasingly saturated, the cost of developing second- and third-tier cities is even higher. Compared with Chinese companies, Japanese home appliance companies lack the advantages of channels, prices, and policies.

Second, the economic environment at home and abroad has increased the cost of Japanese home appliance companies and their performance has declined. First, the debt crisis in the United States and Europe, the yen has appreciated sharply, and the export costs of Japanese home appliance companies have increased. Second, the import tariffs on the Chinese panel industry may increase from the current 5% to 8% to 12%. Although the news is unconfirmed, it may affect The company develops business strategies; Third, Japan's domestic earthquakes, labor reduction and other factors have led to a decline in sales of Japanese home appliance companies, and rising manpower costs.

According to the market research agency GFK, in the first half of the year, sales of Japanese home appliance chain stores decreased by about 20% compared with the same period last year. Home appliance giants are facing losses, Panasonic TV business has lost even three years, Sony is the eighth year loss in 2011, and now Sony has reduced the 2011 television shipment target by 19% to 22 million units.

Third, the increasingly thin profits of the home appliance industry have made Japanese home appliance companies begin their strategic transformation. According to the statistics of China Economic Net, the home appliance manufacturing industry's profit margin is less than 5%. Faced with the increasingly meager industry profits, Japanese home appliance companies have transformed. Sony ranked the lithium battery business, 3D electronic products, and network services as the Group's three major growth engines. Panasonic is advancing toward new energy and environmental protection. In the 2011 China-Japan Green Expo, home appliances were not visible on the Hitachi and Toshiba booths; Sony exhibited environmental concepts and technologies such as solar energy and water treatment; Panasonic made energy, energy storage, energy saving, and energy management The foundation shows visitors comprehensive energy-saving solutions from homes, shops, buildings, public places to the entire region. Although Sharp, unlike Sony and other companies, has strengthened its LCD TV and white goods business, it still focuses on health and energy. Japan's industrial structure, "a decade of change," the law is fully reflected in the home appliance industry.

So, what does the withdrawal of Japanese home appliance companies in the Chinese market mean for Chinese home appliance companies?

The retreat of Japanese companies has brought more market space to Chinese companies, but Japanese home appliance companies are still irreproachable competitors. In particular, it should be noted that the Japanese home appliance companies only retreat in the field of traditional household appliances, and not only did they not withdraw in new areas such as energy conservation, environmental protection, and digital home appliances, but instead stepped up their layout.

In fact, Japanese household electrical appliance companies are shifting from the upstream to the downstream of the industrial chain, transforming from the assembly of low-profit machines to the manufacturing of high-profit industrial core components, and the transition from the terminal retail market to the home and commercial markets, from the product manufacturers to the services. The transformation of the provider is expected to preempt the high-profit segment of the household electrical appliance industry. The transformation of Japanese companies will further squeeze the low-end of the industrial chain and the lack of independent innovation capability of core parts and components of electrical components. The Chinese home appliance enterprises, which are mainly engaged in the production and manufacture of home appliances, will be further squeezed. Profit space.

In addition, the transition from the traditional home appliance industry to the high value-added new energy, energy saving, and environmental protection industries by home appliance companies in Japan has brought inspiration to China's household electrical appliance companies, which have become increasingly marginal.

After more than two decades of development, the survival mode of China's home appliance industry relying on price warfare is increasingly challenged in the market competition. The old-for-new trade policy, new electricity going to the countryside and other policies gradually withdraw, and it also requires home appliance companies to look for new growth points. The increase in the level of income of households and the concern for user experience will make intelligentization, digitization, and humanity the future of home appliances. This will inevitably require the Chinese home appliance industry to accelerate industrial upgrading.

Household appliance companies must strengthen their ability to independently innovate, design products that meet user needs according to a rapidly changing market, and increase the technological content and added value of products. At the same time, it is necessary to strengthen the upstream and downstream integration capabilities, strengthen the research and development of upstream components and products, strengthen the construction of market channels for second, third, and fourth-tier cities, and constantly improve the construction of after-sales service systems to enhance competitiveness.

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