The article is translated from the ” yicai.com -China Business Network “.
From online e-commerce to offline counties, home appliance merchants rush to Double 11｜Focus on Double 11 Shopping Festival
This year’s Double 11 home appliance market is expected to usher in growth opportunities. Home appliances manufacturers are fully preparing for the year-end sprint. Emerging categories and sinking channels are hot spots.
This year’s Double 11 domestic home appliance market is expected to pick up. On October 25th, after the “Double 11” pre-sale started, several relevant home appliance manufacturers told the CBN reporter that they had prepared goods in advance and made full preparations, and they were confident in the recovery of the home appliance market. Among them, sinking channels and emerging consumer products in the township market will be hot spots.
“Double 11 pre-sales have already started. Judging from the data of the last two weeks, major home appliance categories have grown to varying degrees.” Peng Xiandong, general manager of GfK Zhongyikang’s home appliance division, told reporters that in addition to the growth of e-commerce retail, the growth of the new retail market represented by sinking channels is particularly obvious.
“The stocking has started very early, and everything is ready now.” Robam Electric (002508.SZ) CMO Ye Danpeng told the CBN reporter that it is predicted that this year’s Double 11 consumption will recover, so Robam Electric has confidence in the market, but it is expected that the competition will also be fiercer. “We will launch all categories of products, and we are optimistic about new consumer products represented by dishwashers. The channel layout is also adopting global marketing, including platform e-commerce, live broadcast e-commerce, interest e-commerce, and the integration of online and offline.”
Relevant persons from Supor (002032.SZ) also told the CBN reporter that Supor will actively prepare for Double 11 this year, focusing on promoting integrated stoves, integrated steaming, roasting, stewing and frying machines, etc.
On the evening of October 24, Robam Electric and Supor released their third quarterly reports showing that revenue or net profit growth in the first three quarters of this year was under pressure. In the first three quarters of 2022, Robam achieved revenue of 7.237 billion yuan, a year-on-year increase of 2.35%. While net profit attributable to the parent company was 1.234 billion yuan, a year-on-year decrease of 8.11%. The expansion of new categories such as integrated stoves and dishwashers has helped its revenue increase, while the increase in costs has reduced its net profit. In the first three quarters, Supor achieved revenue of 14.98 billion yuan, a year-on-year decrease of 4.37%. And net profit attributable to the parent was 1.3 billion yuan with a year-on-year increase of 5.47%. As overseas demand has weakened due to high inflation, active cost control has boosted profits.
In this context, the fourth quarter has become the key to the annual performance of home appliance companies. And this year’s Double 11 is expected to be high. According to the forecast data provided by AVC to CBN Reporter, it is expected that on Double 11 this year, the domestic kitchen appliances and water heater markets will mainly rely on the driven power of the emerging categories such as built-in micro-steamers (microwave ovens, steamers, ovens), dishwashers, and integrated stoves, achieving a 4% year-on-year increase in overall retail sales. In the domestic color TV market, driven by big promotions and low prices, all channels are picking up, and the sales volume will increase by 1.9% year-on-year.
The super large screen price war in the color TV market has already started. In the pre-sale, after TCL lowered the price of 98-inch Mini LED backlit LCD TV to 21,999 yuan, Vidda, a sub-brand of Hisense, announced on the evening of October 24 that it would lower the price of 100-inch LCD TV to 16,888 yuan.
In the first three quarters of this year, the domestic home appliance market declined as a whole, and the sales during the Chinese National Day (10.1) were not as good as expected. GfK Zhongyikang predicts that in this year’s Double 11, major home appliance market will usher in growth opportunities at the end of the year, especially the winter peak season for washing machines and refrigerators. The retail scale is expected to increase by 7.5% and 5.8% year-on-year respectively. The market growth performance of TVs will be slightly weaker, but air conditioners were expected to have a sales scale of 10.7 billion yuan during the Double 11 promotion season. And TVs will also have a sales volume of more than 11 billion yuan. Among them, fresh air conditioners, over 75-inch or even 98-inch large-screen TVs, clothes dryers and large-capacity refrigerators all becomes hot products on Double 11 this year.
Home appliance merchants also actively prepared for the battle. The reporter learned that more than 1,200 retail cloud franchise stores of Suning.com in Guangdong launched the Double 11 promotion ahead of schedule on October 20. And Double 11 promotions were launched in several cities on October 21-23. Apart from that, Gome also locked in the user needs of the Double 11 market in advance in the form of in-app purchase fairs in Guangzhou and Foshan on October 21-23.
Dai Fengjun, executive president of Suning.com Southern District Management Headquarters and general manager of Guangzhou Region, said that the Guangdong Provincial Government has recently issued a document to vigorously promote the trade-in of old household appliances and advocate green consumption. This year’s Double 11, Guangdong Suning.com continued to vigorously promote the “trade-in” of home appliances, superimposed multiple subsidies from the government, enterprises, and banks, and promoted the consumption of smart home appliances and green home appliances. Through the C2M model, it also provides cost-effective smart home appliances, green home appliances, and new home appliances for consumers in third- and fourth-tier cities.
Besides, Dai Fengjun believes that large-capacity refrigerators, washing machines and some emerging home appliances still have a lot of market space in low-tier cities. Such as multi-door refrigerators of more than 300 liters, all-in-one washing and drying machines weighing 10 kg, dishwashers, and water purifiers. Therefore, in the “year-end sprint”, Suning Tesco South District and Robam Electronics mainly promoted new products such as dishwashers, and jointly launched “Wallpaper TV” with Skyworth.
Before, “service sinking” encountered some challenges in the township market. Dai Fengjun said that in some remote towns, there are some difficulties in logistics, installation, maintenance and after-sales. Suning.com has basically solved the service problem by adding service outlets, recruiting installation and after-sales maintenance personnel, and increasing freight vehicles.
The above-mentioned related person from Supor also told the CBN reporter that in the past two years, he has been following the major e-commerce platforms to develop O2O (combination of online and offline) channels in the sinking market. Li Yushan, Director of Sinking Channel Department of Supor Group, revealed at the Double 11 Launch Conference of Guangdong Suning Retail Cloud last week that Suning Retail Cloud has more than 6,000 stores across the country, and Supor has invested more than 4,000 retail cloud booths.
A CBN reporter noted that Haier, Midea and other leading home appliance companies have specially appointed persons in charge of sinking channel business and they are actively developing sales of all categories of products in the sinking market. Hong Dongming, general manager of TCL Industrial South China Region, said that they have cooperated with Suning Tesco Retail Cloud for all categories. He also encouraged the owners of township stores to dare to put on the shelves high-end home appliances such as large-screen TVs, because 98-inch LCD TVs are now only 20,000 yuan.
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