Li Yuhang has been wandering around in the United States for more than a month, and the price war that started in the domestic home appliance market on June 1 has not only shown no intention of stopping, but has intensified after two months.
Giants such as Kangjia, TCL, Chuangwei, Hisense, and Changhong no longer care about profits at this time, and some special models are sold to channel dealers at cost prices or even loss-making prices.
Channel dealers are also at the point of fierce competition for the market, using home appliances as a breakthrough point to continuously expand their markets.
Giants such as Rakuten rely on their abundant capital to continuously conquer cities and enter the market in one city after another.
This has also caused oversupply in many cities. In some cities, three or five large supermarkets were originally enough. Due to the rapid expansion of these giants, seven or eight supermarkets have been squeezed in, which has also caused all parties to continue to carry out various activities for performance.
and improve services to retain consumers.
The once love-to-buy service attitude has basically disappeared in the retail department store industry, especially these large retail companies, which have also allowed these consumers to fully experience what respect is, which was unimaginable a few years ago.
This is because not only channel dealers are competing for the market this year, but manufacturers are also engaged in fierce competition, which has also led to more intense competition in the retail department store market this year than last year.
Last year, it was only in the East China market, and it was mainly channel dealers. In addition, several giants had relatively tacit control, so it was not too miserable.
This year, the price war has been staged in various domestic markets. Distributors and manufacturers have jointly promoted it. In addition, this time there is no default bottom line at all, so that the sales price has been continuously lowered. Fortunately, the giants rely on supply costs and
The operating cost advantage is that although the profit is not much, it is not a loss. Those small and medium-sized retailers and small and medium-sized home appliance manufacturers will have a hard time.
However, this price war has a relatively large impact on Jianan Supermarket Group. In the stock market, the market value of Jianan Supermarket Group has dropped from a total market value of about HK$19 billion before the mid-year financial report to the current level of about HK$17 billion, a substantial decline.
Nearly two billion Hong Kong dollars.
As long as the domestic price war does not stop, the market value of Jianan Supermarket Group will continue to be depressed.
Of course, the market value of Jianan Supermarket Group is not the only one to decline. All domestic retail giants that have been listed on the market have not experienced a decline in market value.
For example, Hongqi Chain, which borrowed the shell of its former parent company Jincheng Group Commercial Company, logged on to the Shanghai Stock Exchange and successfully changed its name to Hongqi Chain. With its rapid expansion in the past two years, the total market value of Hongqi Chain Group in the Shanghai Stock Exchange is
5.3 billion yuan, which also exceeds Changhong's current market value of only 4.6 billion yuan, becoming the first listed company in Sichuan and Sichuan Province on the Shanghai Stock Exchange.
As for the New Four Seasons Supermarket Group, the total market value of this company is now higher than that of Hongqi Chain Group, reaching more than 6.5 billion yuan? But this company is listed on the Pengcheng Exchange.
Of course, this is also the current market value of the two companies. Based on the current development of the domestic retail market, the market value of these two companies will also be the same as that of Jianan Supermarket Group, and they will fall into a long-term downturn.
The other two giants in the province who were originally planning to go public had to postpone their plans at this time? This is not a good time for domestic retail companies to go public.
In the past two months, manufacturers have not been happy? Channel dealers have not been happy either, and many investors have even cursed. In their hearts, they are resentful of the company that has harmed their interests.
Only those consumers? They used three-quarters or even two-thirds of the price before purchasing the product they had been coveting for a long time. What's more, they only used one-half the price.
Families that used to only plan to buy a color TV took this opportunity to buy an additional washing machine. Those families that only planned to buy a color TV, a washing machine, and a refrigerator? Now they also bought a home air conditioner? Some previously only planned to buy a black and white one. Families with TVs also took advantage of this huge price reduction to buy a color TV.
It is precisely because of this that the upper management has been hesitant about this home appliance retail war. On the one hand, it is to meet the material needs of the people, and on the other hand, it is the issue of employment for millions of workers.
The above are very clear that this situation cannot be delayed for a long time. What if it lasts for half a year? Most of the small and medium-sized home appliance manufacturers will be brought down, and now domestic retail giants are also taking advantage of this opportunity to continue to expand? Fight on price. Squeezing the living space of small and medium-sized retailers.
Just before Li Yuhang returned to China, the Ministry of Industry held a home appliance manufacturing conference in Beijing. There were not only state-owned giants such as Changhong and Geli, but also private overlords such as TCL and Kangjia. There was also Lingfengyang, which had just been established. ? A new force whose products haven’t been released yet.
There is only one theme for this conference, and that is not to harm others with your own merits or disrupt the normal order of the domestic market.
Especially this time, several companies have been specifically named. The government will strengthen the supervision of manufacturers and severely punish those companies that do whatever it takes to occupy the market.
As the president of Lingfeng Electrical Appliance Group, Dong Haiyan only listened with a pair of ears this time. Although the construction of Lingfeng Home Appliance Manufacturing Base has been accelerated in Shaping Bashangqiao Home Appliance Industrial Park, the first phase of production will not be put into production until July 1 next year at the earliest. No., currently this has nothing to do with Lingfeng Group.
By the time Lingfeng Home Appliances goes on the market, the domestic home appliance price war will probably have ceased, and you will just have to follow the market.
Dong Haiyan knows that it will be difficult for manufacturers to provide products to seize the market at a loss in the future, and channel operators such as Jianan Supermarket Group and Lingjiang Electrical Appliance Chain Group will definitely be restricted in the future. This is also This means that the era of huge profit expansion by the two major groups is over.
After leaving the venue, He Hengjian, Chen Weirong, Huang Hongsheng and others also greeted Dong Haiyan warmly, and specifically asked about Li Yuhang's news. It seemed that the previous meeting did not affect these people.
Why doesn't Dong Haiyan know what these old foxes are thinking? In the past two months, Kangjia, Meditech, and Chuangwei have seized the big market, and their reputation has already been established. At this time, they are also preparing to stop. The Ministry of Industry Coming forward was exactly what they wanted.
And with this time, Lingfeng Home Appliances will be launched next year, and there will be no way to adopt the current model to seize the market. This will lead to the fact that even if there are Jianan Supermarket Group, Lingjiang Electrical Appliance Chain Group, Hongqi Chain Group, and New Four Seasons Supermarket Group behind them, Waiting for support from behind may not necessarily lead to quick market recognition.
Especially Chen Weirong, from the day Lingfeng Home Appliances was established, he regarded this company as one of the biggest rivals of the Kang family. He also understood why Li Yuhang only signed a three-year cooperation with him. It turned out that the other party had
Plans to enter the home appliance manufacturing industry.
In the entire home appliance industry, no one will underestimate the potential of Lingfeng Home Appliances Group. Its technology is imported from Japan and will definitely not be worse than any of them. In addition, it has the top five domestic retail department stores and the largest home appliance retail company in the country.
With the help of giants, their products can easily enter most provinces and cities across the country.
However, manufacturers like them do not have such an advantage. When the time comes, they will suffer more than Lingfeng Home Appliances from competition.
It is precisely because of the emergence of Lingfeng Home Appliance Group that it has accelerated the pace of some manufacturers building their own channels. A large number of companies such as Changhong, Medi, and Geli have begun to set up their own stores.