Model transformation or industry development opportunities

Looking back at China's refrigerator market in the past two years, under the dual pressure of continued sluggish market conditions and intensified brand competition, the survival of refrigerator companies has become increasingly difficult. Although the overcast cloud in the refrigerator market did not dissipate, some product segmentation areas showed different degrees of growth. In the face of such complicated market conditions, all refrigerator practitioners are pondering a question. Where is the next outlet in the Chinese refrigerator market?

On May 26th, the “Redefinition of Fridge - 2016 China Refrigeration Industry Summit Forum & Trend Conference” sponsored by the China Household Electrical Appliances Association and the Information Resource Development Department of the National Information Center, co-organized by the China State Grid Corporation and JD.com’s exclusive home appliance channel, was held in Beijing. , Haier, Midea, Rongsheng, Meiling, Siemens Home Appliances, Casa Di, Samsung, Bosch Home Appliances, Panasonic, Sharp, Whirlpool, Xinfei, Hisense, Timor, Omar, TCL, Skyworth, Marshal, Huari, Rongshida, Wanbao, etc. At home and abroad, mainstream refrigerator brands, industrial upstream and downstream companies, and more than 60 representatives of the mainstream media such as today’s headlines gathered together to discuss the industry development context and consumer trends, and further explore the development direction of the refrigerator industry and future competition.

Affected by the macroeconomic situation and industrial environmental factors, the domestic refrigerator market witnessed a continuous decline in retail sales and retail sales in 2014 and 2015. In 2016, the Chinese refrigerator market showed no signs of improvement.

According to data from the National Information Center, domestic refrigerator sales fell 5.90% from January to April 2016, and sales decreased by 8.15% year-on-year. As the competition in the refrigerator market has intensified, the overall average price of domestic refrigerators has shown a downward trend. From January to April, the overall average price of refrigerators decreased by 4% compared with the same period in 2015. Among them, the average price of two refrigerators fell by 4.9%, the average price of refrigerators on the doors fell by 16.9%, the average price of three refrigerators decreased by 5.4%, and the average price of refrigerators with four or more refrigerators dropped by 11.4%.

Cai Ying, deputy director of the Information Resources Development Department of the National Information Center, said that from the overall average price trend of refrigerators, it can be seen that with the continuous upgrading of technology and the control of production costs, the average selling prices of various types of refrigerators have been reduced. On the other hand, the price trend also reflects the fierce competition in the refrigerator industry. In order to maintain market share, enterprises actively engage in promotions and price reduction activities are also an important reason for the decline in the overall average price of refrigerators.

In recent years, the gross margin of the entire refrigerator industry has declined, and from the financial reports of listed companies in 2015, most refrigerator companies' revenues and profits have also declined. At the same time, the cost reduction from the decline in the prices of bulk raw materials such as steel, copper, and aluminum, and the decline in international crude oil prices no longer existed. Big brands still have room to survive due to economies of scale, brand advantages, and technological R&D advantages. With the intensified price competition in the industry, the brand will face a severe test of survival.