Appliance industry is not to make money accidental
mm A reporter asked
Eastern Oriental Entrepreneur Magazine Entrepreneur: Currently, many appliance manufacturers are starting a non-appliance business, investment, real estate, stocks, and some people say This is the bottleneck in the face of the industry made a variety of choices, do you think? companies such as Siemens, have, like many other businesses.
in Puritanism: China's home appliance industry is currently facing from industry overall lack of core technology, profit margins decline, and overseas markets, a huge threat of increased anti-dumping.
in survival than development, product margins as thin as the blade today, many companies do not as a sideline business call the shots feel more sophisticated and wealthy make, to do hard work and dangerous reality industry for many companies to become lazy, thereby passivating the sensitivity of everyone on the market, so to run around, trying to jump out of the competition, Blue Ocean main energy and determination, but also reflects the company's impetuous.
debate on whether the enterprise diversification, I've analyzed, not repeat it.
Oriental entrepreneur: At present, China's home appliance manufacturers touch to the core of the problem is? is that people often say that the technology can not follow up?
in Puritanism: the lack of core technology, the industry a high degree of external dependence, the industry must rely on imports to meet product demand and market restructuring, resulting in China appliance maker lost the right to speak, grievances survival.
such as color televisions flat panel TV trend of the rapid rise of China's color TV industry to accelerate the hollowing and efficiency without increasing marginalization of the crisis mm, low-profit high-end products.
If you do not stop and Chinese companies, with real action to the accumulation of core technologies, core competencies and continue to stop in the Home: In fact, foreign companies into China is also the case of failure, Electrolux is typical, you think Electrolux is currently the most fatal problem? a good solution?
in Puritanism: mainly due to the four reasons: First, strategic drift; Second, the volatility of the product; Third, the embarrassment of brand positioning; Fourth, the team building on the poor. Electrolux in China's ten year, whether it is capital or headquarters of strategic mergers and acquisitions repeated adjustments, and always maintained a that the business strategy to , or reduce non-value-added products and the industry chain, this transition is painful short term, but in the long run, this is an inevitable trend. If Electrolux business strategy in China can basically put in place by then personnel changes, its late market opportunities should not be overlooked, after all, Electrolux product technology, research and development, design and the powerful strength of its capital on the market still has a strong explosive force and impact.
Eastern entrepreneurs: If everyone in the Chinese market , the home appliance companies are not making money, then why do so hot in this industry? Why? is a lie you?
in Puritanism: the planned economy era, the scarcity of household electrical appliances, we rushed on the production line, with the reduction of trade barriers and market rapid economic development, especially the localization strategy of multinational appliance companies, making the competition more and more fully, more incandescent, industry profits are getting lower and lower.
a business into a bigger industry, To exit the market, the cost is very high, so the company can not easily give up home appliances, to capture the market, do the brand, we need sustained investment and integration of more resources, so the competition is more intense.
I want to say , the truth of the market and competition is real, cruel, and we do not need to maintain the prosperity of the surface or face the expense of the environment, waste of social wealth and resources, is a market, let the market to verify that everything.
Source: Eastern entrepreneurs
Magazine December 2007
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