Article by hi joiney

At present, public opinion holds that China’s household electrical appliance industry is one of the most outstanding industry, while there are a lot of guidance in the intensification of the contradictions between the manufacturers, that China’s manufacturing losses, low profitability is channel-friendly “exploitation “the result of the charges on the channel to conduct business strong attack. Recently, home appliance sector will be exposed in the home appliance manufacturing industry was established in Chongqing ** club rumors, though the matter be followed by more than 20 manufacturers issued an official statement the rumor, but there are individual media continue to hype, not enough excitement for fear of contradiction manufacturers. Phenomenon we can to calm, objective and fair view of China home appliance manufacturing, Retail Between the nature of the problem, rather than individual voices, “confused.” Then,Made in China Industry and retail in the end What is the problem, they need to solve any problems, Go? The author believes that confronting the Chinese home appliance manufacturers and appliance channel business is only one way out before, is to improve core Competition Force. Present, appliance manufacturers are in oversupply, glut stage. Chinese home appliance industry, the nature of current conflicts, manufacturers and channels of business is not a contradiction, but the contradiction between manufacturing and consumption. Channel is not the root causes of conflict, but conflict in channels of supply and demand was reflected in the platform. Manufacturing profitability is low and channel business in China is also now only 11% of the consolidated gross profit margin, and their foreign counterparts for more than 20% of the consolidated gross profit margin compared to gap. China’s manufacturing industry, retail trade have reached the urgency to improve core competitiveness of this barrier, although the Chinese appliance manufacturing and foreign appliances Brand Competitive than the competitive channel now than ten years earlier (now foreign companies have not yet entered the Chinese home appliance channel), but after 10 years of competition, what is the result? Most Chinese home appliance brand concerned about the cost, price, and Japan, Korea, Europe and the United States and other brands has increased the convenience of home appliances research and development, and establishment of R & D base in China; Chinese home appliance industry, the total patent applications Although a larger growth, but look, practical, a new main, the core technology patents little big but not strong industrial base and the large gap between the developed countries. For example, China is still not a mass production business Semiconductor Manufacturers, most household electrical appliance enterprises semiconductor procurement cost is very high, and Japan’s NEC, Mitsubishi, Toshiba, Hitachi are self-production of semiconductor chips. Because the lack of core technology manufacturing in China, so its high manufacturing costs, product market price surpasses the core technology has low prices of foreign brands. Is precisely because the gap between the core competitiveness, leading to domestic Mobile This year into the “winter” into a corner, flat-panel TVSell The first three had been occupied by foreign brands. Can not grasp the core technology, component procurement costs are high, the low retail price inferior to foreign brands, this is caused by manufacturing the real reason for the low level of profitability. As a channel for business, foreign appliances will channels of commercial presence in China, sources with the Chinese appliance makers to compete. Bestbuy promise to the United States entered the Chinese market in 2006, we wish to see in China after 5 years Home appliance chain Channels and foreign competition in the market, there is now manufacturing the same situation, with only the size of a lack of core competitiveness. All together now cost only 11% of consolidated gross profit margin is also home appliance makers channels, only the consolidated gross margin to 16% or more that a basic distribution companies with international business competitiveness, and we may win the next competition. The channel’s core competitiveness of the solution is how to improve Operate Level, improve the overall gross margin for the premise, so improve the overall gross profit margin is imminent. Appliance manufacturing and retail trade should focus on their core competence to enhance, rather than the channels hope to reduce the manufacturing charge, the key is their business, how to self-improvement, the formation of benign Health Development. Although the term channel business in the domestic home appliances in China’s influence has been strong, consolidated gross profit margin is not high but it is a fatal weakness, which is the home appliance channel is required to solve the problem. Chinese home appliance channel operators want to improve their Operation Capacity, the management level to compete with foreign companies, must be consolidated gross margin increased by upgrading into a service level, product management, business management, Logistics , Purchasing, sales, development, etc. to enhance the overall level. Channel for the Chinese traders, 2006,2007 in the most critical years. For example, if the channel operators calculated in accordance with 500 stores, each store more than one additional staff to increase on the equivalent of 10 million yuan a year in operating costs; so Xuanhu it? We counted about a service pay 1,700 yuan monthly account, a service 1 year 12 months annual salary is 20,400 yuan; 500 stores to more than 500 additional staff, a service for the 20,400 yuan annual salary, 500 service personnel of the annual salary is more than 1000 million, the result is undoubtedly amazing.