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Appliance Industry Is Still Weak Were Forced To Integrate Upstream And Downstream Resources by big tree
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Appliance Industry Is Still Weak Were Forced To Integrate Upstream And Downstream Resources by BIG TREE
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| Article Posted: 08/16/2010 |
| Article Views: 10 |
| Articles Written: 1033 - MORE ARTICLES FROM THIS AUTHOR |
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Appliance Industry Is Still Weak Were Forced To Integrate Upstream And Downstream Resources |
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Business,Business News,Business Opportunities
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Beijing Digital China Research Institute of appliances, principal analyst Jiang Peifeng predicted: "a large-scale integration appliance industry growing, by 2015, only five Chinese home appliance brand." It now appears that the household appliance market is one step in this prophecy step approximation.
Consumer electronics market, further reducing profits, and more and more small enterprises also compete for profits. The new changes are beginning, for the technology, the adoption of financing available to enter the upstream industry chain; while for the market, creating a low-cost distribution channels can also enhance the sales of brand recognition while winning for the integration of additional chips.
Appliance industry is still weak
Ministry of Information Industry released the first half of operation of the electronic information industry report showed the first half of the performance of household appliances is still unsatisfactory, mainly in three points: first, the negative growth trend of traditional household appliances, telephone stand-alone production fell 8.4%; fax machines fell 27.5%; second, the LCD TV market competition, profit margins and further tightening.
Is increasing production costs and the saturated market capacity decline in economic efficiency in household electrical appliance industry. With color TV, for example, the third quarter of 2006, Shanghai and Shenzhen all listed companies to achieve earnings per share weighted average of 0.21 yuan, but Haier, Changhong, TCL and six TV companies, average earnings per share is only 0.076 yuan. The wave of internationalization for the Chinese market has brought more "wolf", household appliances Matthew intensified at the same time, small household electrical appliance enterprises in China more than 1000.
Chinese home appliance brands available and the relatively poor ability of independent R & D, key technologies in voice weak, especially in the upstream. Japan, Korea and Europe and the United States compete in the process of home appliances, most of the home appliance chain can not occupy a frontline position of the counter, the economy will inevitably face a significant loss. Therefore, both advancing to the upstream or brand adhesive and sales, the integration is an inevitable trend.
Beachhead for integration upstream
For most Chinese enterprises, diversification and internationalization of control of capacity remains a challenge, launched around the core businesses "related diversification" of the industry chain, many enterprises to expand into the reality of options.
Changhong, Zhao Yong, said new coach, Changhong field strength in the machine, while the consolidation will have a choice to enter the field of critical parts. TCL Group in 2005 and established the Components Business Unit, specifically to expand the upstream areas of higher added value.
In fact, the domestic color TV manufacturers to enter the upper panel market is not already the case, but has become a collective behavior. Prior to January 23, 2006, TCL, Skyworth, Konka, Changhong and four giant TV Shenzhen Super Science and Technology Investment Corporation invested two million yuan jointly established the Shenzhen Julong Optical Company, into the upper reaches of manufacturing flat-panel LCD area.
Upstream industry chain to penetrate the most obvious benefit is that, through upstream and downstream of the comprehensive control and reduce supply risk. The financial problems can be resolved through the listing and financing, which through the two giant Gree air conditioning industry layout beauty performed is clear, however, the two companies has become the domestic A shares of the largest appliance manufacturers in stock price.
Create a new business model
Appliance manufacturers should consider how to build a new business model for suppliers and consumers more and better consumer services, in order to determine their position in the market to meet the integration era.
2007 4 27, Gome and Haier signed a 10 billion cooperation agreement. And national supplier of the United States has always treated different is that the United States the country's strategic cooperation with Haier, innovations slotting allowance is zero, and significantly expand areas of cooperation.
In addition, the two sides will set up country America Haier Division, to extend cooperation to jointly analyze the market, jointly developed products, to formulate marketing strategies, unified service standards and service behavior and other fields.
I am China Manufacturers writer, reports some information about vanillin , pure white linen.
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