Analysis of Marketing Strategy of China's Home Appliance Stores

Gree relied mainly on its exclusive store system to dominate the Chinese air-conditioning industry. Vantage relied on stores to transfer its brand names from unrecognized to current industry-renowned brands, all of which led home appliance manufacturers to follow suit. However, success is no accident. The author discusses the core of the franchise's success, aiming at attracting attention, and hopes to give home appliance companies some lessons.

China's home appliance manufacturing companies began to sell exclusive stores in the TV industry in the 1990s. At that time, they were unsuccessful and quieted down. In the current revolution in the field of household appliances circulation, Chinese household electrical appliance companies are "sticking to" home appliance outlets while exploring new sales channel models to become an important strategy for the healthy development of China's home appliance companies. Gree, Vantage and other channels of pioneering companies to change the channel model to a lot of home appliances companies to new inspiration, brand home appliance companies built their own franchise stores have become a household electrical appliance enterprises imperative channel reform model.

In fact, the store really has a great chance of success. Gree relied mainly on its exclusive store system to dominate the Chinese air-conditioning industry. Vantage relied on stores to transfer its brand names from unrecognized to current industry-renowned brands, all of which led home appliance manufacturers to follow suit. However, success is no accident. In this discussion about the core of the store's success, aimed at attracting attention, hope to give home appliance companies some reference.

First, market-level choices. The current tiering of China's home appliance market is relatively obvious. It can be broadly divided into primary and secondary markets and tertiary and tertiary markets. Primary and secondary markets are municipalities, capital cities, and most prefecture-level cities. These markets can be referred to as "terminal-type markets." Its characteristics are that consumers are very rational and mature. At the same time, home appliance chain stores and supermarkets occupy a dominant position, and traditional channels have little sales. The tertiary and tertiary markets are county-level cities, townships, and some undeveloped prefecture-level cities. These markets can Called the “channel market”, its characteristics are that consumers are not yet mature, while traditional channels dominate, emerging home appliance chain stores, supermarkets have little sales, and the store model is currently fully effective in the 3rd and 4th markets. , but in the first and second markets, it requires conditions, big brands may be successful in certain conditions to open stores, but for most SMEs, this is tantamount to hitting the stone, home appliance stores usually in the first and second markets It exists as a complementary type. In addition, the primary and secondary market brands are full of brands, and the quasi-three-tier market is full of brands. It is also an ideal model for strong brands to enter the tertiary or tertiary markets through the establishment of specialty stores.

Second, funds. It is a costly move for companies to set up specialty stores. The inherent costs of planning, decoration, etc. from the previous period, together with the current franchise and franchise system of most home appliance manufacturing companies, seldom take the form of direct operation, and the franchised stores are the responsible parties responsible for their own profits and losses. Therefore, these stores have high profit requirements. The financial pressure in many aspects is often something that small and medium-sized enterprises cannot afford, and funds are necessary conditions to ensure the survival and development of the stores.

Third, brand awareness. Changes and trends in commercial channels conflict with specialty stores. When home appliance chains successfully occupy a market, they will change the purchasing habits of many local consumers and attract and transfer consumers to a large extent, but home appliance chains can change consumption. The purchasing habits of consumers cannot change the consumers' awareness of the brand. For example, in Chongqing, consumers have a higher awareness of Vantage brands, so consumers in Chongqing will not mind where to buy when they purchase water heaters. . So whether the brand is well-known, customers will not mind buying electrical appliances in stores, or simply saying that customers will definitely buy this brand? The facts are not entirely correct. The world-famous marketing master Kotler once said, “There is no brand loyalty that cannot be bought without a penny!” Indeed, in a country with a population of 1.4 billion, this is indeed a true portrayal of our daily consumption, even if we like it again. A certain brand, but when the competition brand launches a promotion or discount activity, we often cannot withstand the temptation. When we buy electrical appliances, we usually go to many stores, specialty stores, or online to inquire about the price performance. We compare them against each other and eventually choose products with a lot of discounts and gifts. If we happen to catch up with promotions, it would be best. Then in such an era of heavy "than" heavy brands, especially in the primary and secondary markets of the chain, how can a store be based on this market? The key lies in innovation and advancing with the times. In today's home appliance market, the price war has been eliminated. Consumers not only need products, but also need to provide a value-added service that can be provided by the products. Since the needs of consumers have changed, then enterprises must be sought. A change must be redirected to consumers, through differentiation, through value-added services, a new marketing model - stores, to a new height. For example, although Galanz does not produce smoke stoves, when customers purchase related products, they will provide consultation services related to smoke stoves, or may tell consumers where to buy, buy what kind of products, brands, etc., There are also issues such as how to deliver goods to customers' homes. Facts have proved that such value-added services allow customers to feel at home, and this one-stop service approach has also been recognized by consumers. In addition, the cherry tree “kitchen kitchen store” has been greatly improved due to the introduction of cabinet products and the overall kitchen concept.

Fourth, the product line. Product line length, category is complete, store profitability is stronger, and store profitability is a key indicator to determine whether a store system is stable. The same products, some manufacturers' product lines are not long enough, there are several good products, can not form a basic product pyramid, such as profit products, volume products, combat products, can not be profitable, so the new store will open, through the opening ceremony After making a "good start" for events such as promotions and promotions, it will stop here. Some manufacturers, due to their long product lines and reasonable product mix capabilities, have enriched the whole store, such as Sakura and Vantage. The specialty stores have become an important channel for sales of their products, and their sales account for a large proportion. It made them more stable in the market and played a stable and balanced role in various channels.

Fifth, resource reserves. The long product line of specialty stores is bound to have such a problem. Before the agents of each product line were different, due to the differences in the strength and energy of agents, the development of each product line in each region was not balanced. Under the circumstance, it is a good choice to integrate product channels and establish sales companies in cooperation with local agents. Galanz’s home appliances living museum is thus formed, so good communication and cooperation with the agents becomes important. The most important thing. Take Vantage as an example, its stores are the result of long-term accumulation of various resources, among which the talent pool is the most critical. Vantage has opened franchised stores since the 1990s and gradually developed and standardized. At the same time, after years of cooperation, dealers and dealers have established close and good relations of cooperation to further promote the development of Vantage stores. Although from a single store, Vantage stores are not unique, but due to the huge number of stores, the scale has formed, so its strength can not be underestimated; on the other hand, Vantage headquarters also attaches great importance to the design of the store's image, And constantly improve, continue to support, site selection, store decoration design, image of the unified, standardized and storefront, store shopping guide management specifications have system standards. Based on the good relationship with the distributors and the attention paid by Vantage to the retail outlets, Vantage has been adhering to the policies for many years to promote the continuous construction of the stores.

Sixth, the manufacturer's ability to control. Some stores through the manufacturer's product portfolio, promotion and their own efforts, profitability has not been a problem, but many of the store system, the current market order control has become a big problem. Especially in the tertiary and quartile markets, the act of selling goods and indiscriminate prices is very common. If manufacturers do not conduct effective management, they cause de facto discriminatory treatment on specialty stores, so the profits of the stores will be far indefinite. In order to protect themselves, Over time, they joined the army of the bulk goods, so that such a store was in name only, and "brand monopoly" became empty talk.

Is the store model a "live" or an "absolute"? It is only the manufacturers who look at each other! However, whether it is alive or dead, it will always be a road and there will be opportunities. The key lies in whether you can seize this opportunity, and firmly grasp this opportunity, use this opportunity, and ultimately succeed.