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Foreign air-conditioning brand in China

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Foreign air-conditioning brand in China

Foreign air-conditioning brand in China

From the former market leader, industry enlightening to observe today's lone regional markets were reduced to the edge of the Chinese market, more than 20 years, to Samsung, LG, Sanyo, Hitachi, Toshiba, represented by foreign-funded enterprises in the Chinese market What in the end on the bottlenecks and difficulties encountered? And what are the challenges faced with the pressure? living space and the market prospects for the future, how will? 
As China's economic development, China has not only become the world's largest consumer market in air-conditioning, but also to become the world's largest manufacturing center. Air-conditioning industry in China, a former teacher, not only in scale, far behind the students, even in the right to speak is also a plate. Bluntly speaking, foreign brands in China's air conditioner market, fast-falling, the future survival of worrying, in the profits and size of the worries of moisture can only crawl forward. 
Only profit to the living conditions of worrying 
Comparing the world's leading consumer electronics company had been to China to enter the air-conditioning market, but some brands because of the Chinese market acclimatized, not collapse, is to be playing with toys. Are still active in the Chinese market, foreign brands also more than 10 only, and not the size of large, become a market substitute person. 
At present, foreign air conditioner brands in China can be divided into three categories: First, the traditional home air conditioner brands, including Panasonic, Mitsubishi Electric, Mitsubishi Heavy Industries, Hitachi, Sanyo, Samsung, LG and so on. These brands enter the Chinese market earlier, because of policy restrictions at that time to take the form of a joint venture with the Chinese side. The second type is a unit of central air-conditioner brands including Daikin, Orwell, Toshiba and so on, through the influence of central air-conditioning into the home market. The third category is the brand to the Chinese enterprises to operate, including Electrolux, Whirlpool, modern and so on. U.S. Whirlpool and Suning take an exclusive co-underwriters. Sweden's Electrolux to enter the country the United States starting the retail channel, break into the domestic high-end market. South Korea's Hyundai is the brand entrusted to Mr Duncan Pescod, from Pescod assume full responsibility. 
Of foreign capital in the largest market share in China's Matsushita, has annual sales of 1 million units wandering. LG had over one million units of history, but now in China, far from satisfactory. Mitsubishi Electric has been developing well, especially in the quality management more prominent, but the overall increase in the size of a lack of a breakthrough. Most foreign brands are very difficult to exceed annual sales of 500,000 units of the bottleneck. 
Currently, domestic enterprises in terms of scale beyond the foreign enterprises is an indisputable fact that many foreign brands have been reduced to only manufacture in China, supporting base. In the overseas market is also facing the challenge of Chinese enterprises, reluctantly supported. 
Except the profits, the foreign brands is higher than Chinese companies. In particular, Mitsubishi Electric, Mitsubishi Heavy Industries, Daikin's gross margin is far higher than the industry average. The one hand, the high foreign brand positioning, locking high consumption in China, adhere to high quality of the high premium. Second, foreign brands are not very large, large-scale participation in the domestic market price war. However, some have pointed out, the same raw material costs, but Chinese companies to sell up to several thousand dollars more than the price of foreign-funded enterprises in China, the profit plunder. 
However, at present, foreign brands mainly concentrated in coastal areas and 12-tier cities in inland provinces and the poor penetration of the edge of the region. In such circumstances, the majority of foreign brands willing to status quo, or no choice but to accept this reality. 



Inability to adapt and find it difficult to scale expansion 
As China's air conditioner market and the pioneer of pioneers, foreign brands have had an influential history. The mid-90s of last century, Hitachi little cool gangsters, a small cooler with popular products, as has been all the rage. Mitsubishi Heavy Industries, Mitsubishi Electric is a high quality of life symbol. Panasonic due to the close to the Chinese market, sales and rapid market acceptance. LG launched by the World Cup, the Korean wave of air-conditioning. Samsung's superb industrial design through the level of access to the beautiful appearance, beautify the appearance of leading the new trend of the industry. 
Foreign brand in China starting late is absolutely better than domestic brands, but in terms of size, influence, voice and so backward, why foreign brands win at the starting line, lost his way in the competition then? 
On the one hand, restrictions on foreign big blind position space. Since the foreign brands to enter the Chinese market, targeting high-quality, high consumption. Since the locked top of the pyramid consumer group is a small minority, it must be difficult to determine its size bigger. Also shows that foreign companies are not familiar with the Chinese market and do not understand the circumstances, the blind pursuit of profit orientation. 



On the other hand, the Chinese market acclimatized. First, the foreign-funded enterprises on the Chinese market to the off-season mode of play shall Yahuo not adapt to light only in accordance with the annual season of natural market operations, but the domestic air conditioner sales of seasonal differences are significant, domestic enterprises to use policies to narrow the differences between low and peak seasons, expansion of effective marketing the time period, foreign investment can only "view of the wall." Second, the domestic brands in the market development, would often be the use of a flexible marketing strategy to stimulate consumption, while the foreign brands are rigid, difficult to change every year. Moreover, the domestic market channels is relatively complex, some foreign brands plan is simple, taking only a single channel mode, or even to use the national agency, the provincial agency approach. For example, Sanyo Air-conditioning is only in cooperation with Suning Appliance, limiting its development. The Mitsubishi Electric is the whole operation to the agent, not directly facing the market. This exclusive channel strategy is simple, but the radiation in a narrow market segments. 
In addition, foreign brand relatively conservative style, but also lost on the Chinese market policy, take advantage of opportunities. Last year, the national implementation of the "energy saving Huimin Project" policy requires companies to subsidize first advance of funds, and then apply to government departments under the process. Many foreign brands, "after the first advance of funds can smoothly get subsidies," there are doubts, or fear to apply for subsidies is complicated. And thus not inclined to take the risk, thus missing in the policy of market opportunities. 
Underestimate the consequences of China's foreign invested enterprises will eat 
At present, the domestic market in the context of the Government to stimulate domestic demand, highlights the demand for relatively more room for other global markets, to include all enterprises, including foreign brands provided a rare opportunity for development. However, after a series of foreign-funded enterprises but because market positioning and operation, has already lost at the starting line. The current pattern of development and competitiveness of the domestic market terms, foreign brands should be in terms of scale and then to catch up with the domestic Gree, Midea, CHIGO, Ochs and other enterprises, is almost impossible. 

Pub Time : 2013-08-16 15:02:52 >> News list
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