Wu Haiquan, President of Midea Group in China, predicts that live broadcasting will continue in the home appliance industry, because it can solve some pain points of enterprises in some aspects and fields, especially the problem of marketing efficiency.
Increase of online share
According to AVCs Omni channel promotion data, in the first half of 2020, the white power market has experienced a channel reversal, and the online share has continuously broken through. From January to June, the proportion of online retail sales of air conditioners, refrigerators, washing machines and freezers rose by more than 10 percentage points compared with that in 2019, reaching 54%, 63.6%, 64.3% and 54.3% respectively.
Under the influence of multiple factors, such as the alleviation of epidemic situation, economic recovery, slow-release of demand and price pull, 618 has become the sales turning point of white power in the first half of the year. According to the statistics of Aowei cloud, during the period of 618 this year (from the 22nd to 25th weeks), the online sales scale of domestic air conditioners, refrigerators, washing machines and freezers increased by 11.1%, 21.8%, 30.6% and 16.8% respectively year-on-year.
This year, the growth rate of the home appliance market is obviously faster than that of the offline market. At present, the online sales volume has exceeded that of the offline market. This is the first time that such a trend has appeared in the home appliance market in the past decades. Wen Jianping, chairman of Aowei cloud network, said in an interview with the media.
Taking air conditioning as an example, the data shows that in the first half of the year, the retail sales of air conditioners were 28.86 million units, a year-on-year decrease of 14.3%, and the retail sales were 83.1 billion yuan, a year-on-year decrease of 26.9%. Throughout the first half of the year, the average price of air conditioning dropped by 14.7%.
The reporter visited the major home appliance stores in Guangzhou and learned that since the new energy efficiency standard was released at the end of last year, Midea has been promoting some old energy-efficient products.
Wu Haiquan told reporters that e-commerce sales of the United States accounted for about 30% last year, but from January to May this year, the proportion of e-commerce in the United States has soared to nearly 50%.
Gree, which has carried out seven live broadcasts, has also greatly increased its online sales share. According to the statistics of ovey cloud, the market share of Gree air conditioner online sales from April to June this year was 26.25%, 23.91% and 27.63%, respectively, with a year-on-year growth of 12.11%, 12.1% and 13.09%; the market share of sales was 29.17%, 28.38%, 31.85%, with a year-on-year increase of 9.59%, 11.51% and 12.32%.
Live broadcasting becomes the norm
Since the first live broadcast of the April 24th tremble, GREE has conducted seven live tiktok so far, with a total sales volume of over 22 billion 800 million yuan. Dong Mingzhu, chairman and President of Gree Electric appliances, said that Grees live broadcasting will become normal this year. In fact, not only Gree, live broadcasting has become the standard configuration of most home appliance enterprises.
According to Wu Haiquan, Midea has explored five kinds of live broadcast forms, and different forms have different functions. For example, store live broadcast or station live broadcast mainly solves the problems of transformation and product dissemination; star live broadcast solves the problem of user penetration; and the cooperation with Li Jiaqi, Weiya and other anchors with goods is to solve the problem of a new product or popular product The fourth is to cooperate with the Kwai Fu and waist master to solve the problem of coverage of the region and the crowd. Finally, it is the beauty of its own guide, the live broadcast of the internal staff, in order to solve the problem of online and offline products, old customer groups.
We are carrying out these five categories, and from the current situation, we will strengthen the indicators of the whole supply chain and the application of data, including the flow, the precipitation of new customers and old customers. We will consider the overall situation, instead of simply looking at the sales volume of a live broadcast. This is meaningless. Wu Haiquan said.
According to the report released by ovey white power business department, based on the development of physical stores closing and e-commerce live broadcasting, live broadcasting with goods has become one of the core sales channels of the home appliance industry, and the sales form of e-commerce live broadcasting may be normalized in the future.
Gome also has similar plans. According to Wang Junzhou, Gome has continued to promote the comprehensive integration of online and offline services since this year, taking stores as the center and using the new consumption mode of community + live to provide services to the surrounding 3-5 km community. Currently, Gome has established more than 170000 communities throughout the country, reaching more than 60 million users.
This is an important way to achieve effective interaction with users, and also an important pillar to support live broadcasting. Wang said.
It is worth noting that with the normalization of live broadcasting and online sales becoming more and more important, the channel reform of home appliance industry is also accelerating, and the trend of flattening is increasingly obvious.
Although this has caused a lot of doubts, the trend of flattening household appliances channels has become irreversible. Not only Gree, Midea and Haier are facing the same problem, but Grees distribution system is relatively large, which makes it even more resistant.
According to Zhao Meimei, general manager of Aowei clouds white power business department, with the increasing online sales, the offline hierarchical distribution system of household appliances industry is gradually disintegrating, and enterprises are also trying to reduce the agency level to reach consumers with more competitive prices.
With higher consumption and thinner profits, we see the impact of e-commerce on the original. Wu Haiquan said frankly, if the original traditional pricing and marketing model, in fact, can not match the requirements of the anchor with goods for the Commission.
In terms of the whole marketing method, a part of the marketing expenses may have been set aside, but it is not needed now. The anchor with goods can help you plant grass for users directly in the live broadcasting room, as well as the sales, including part of the follow-up operation. Therefore, in the whole value distribution, live broadcasting will change the cost structure and profit structure of some products. Wu Haiquan, for example.
Wang Yongqi, director of South China area of Midea air conditioner and general manager of Shenzhen Center, told reporters that Midea has been promoting the T + 3 production mode in recent years, reducing the inventory as much as possible, dealers can order through app, no matter it is 1 set or 100 units, we can send it. It does not mean that we have to reduce more or less units before we can produce and ship to you. How to coordinate the relationship between online and offline is a problem encountered by the whole industry and all categories. In the process of accelerating the transformation of the dealer system, Midea found that it needs to re plan according to the consumption scenarios and business types of users. We hope that our dealer system can transform to new formats and provide services for new scenarios and user needs. To this end, We readjust the layout of offline formats, which is the key to the transformation, rather than simply go to Taobao and Jingdong to open a store. Wu Haiquan said. Zhao Meimei believes that the offline channel of household appliances needs to be transformed, not only to improve the online and offline Omni channel operation and service ability, but also to gradually transform to experience store + sales shop, and gradually build up the ability of set sales. Source: Chen Hequn, editor in charge of economic report in the 21st century_ NB12679
Wang Yongqi, director of South China area of Midea air conditioner and general manager of Shenzhen Center, told reporters that Midea has been promoting the T + 3 production mode in recent years, reducing the inventory as much as possible, dealers can order through app, no matter it is 1 set or 100 units, we can send it. It does not mean that we have to reduce more or less units before we can produce and ship to you.
How to coordinate the relationship between online and offline is a problem encountered by the whole industry and all categories. In the process of accelerating the transformation of the dealer system, Midea found that it needs to re plan according to the consumption scenarios and business types of users.
We hope that our dealer system can transform to new formats and provide services for new scenarios and user needs. To this end, We readjust the layout of offline formats, which is the key to the transformation, rather than simply go to Taobao and Jingdong to open a store. Wu Haiquan said.