Ove cloud network daily data: home wire market under the National Day Mid-Autumn Festival double promotion ...

Home Appliances Consumer Network October 6 hearing this year's National Day Mid-Autumn Festival double-promotion households under the cable market suffered the history of the "cold" quarter. Today, the day-to-day monitoring data from AVC, the home appliance research data company, shows that the national wireless market's year-on-year decline in the National Day Promotion Period has basically settled.

National Day promotional period under the home wire market fell more than 10% cold

Despite the fact that promotional sales were still eye-catching, sales data did not meet expectations. According to the monitoring data of AVC's 4,500 daily offline monitoring outlets, from September 27 to October 3, 2017, China’s one to three-tier cities’ offline consumer electronics retail market, in addition to the purifier, The scale of the full-class market has fallen by more than 10% compared with the same period of last year.

From September 27 to October 3, 2017, the retail sales of sub-categories in the retail market under the wire in the same period in China (excluding the 34 markets)

Source: Daily monitoring data under AVC Cloud

National Day data reveals that home appliance market brands are accelerating

The daily monitoring data of Ovid Cloud Network shows that the concentration of home appliances in the National Day market has further increased. From the concentration data of the top3 and top5 brands in each category, it can be seen that the more sluggish the market is, the greater the importance of the brand, and at the same time, it also shows from another perspective that companies lacking brand awareness or lack of brand influence Enterprises will be even more struggling.

From September 27 to October 3, 2017, the retail sales of sub-categories of TOP brands in China under the national cable market

Source: Daily monitoring data under AVC Cloud

The brand performance of sub-categories, the trend of market concentration in traditional leading brands is even more pronounced

The share of TOP brand retail sales and the year-on-year change in the retail market under the national wire between September 27 and October 3, 2017

Source: Daily monitoring data under AVC Cloud

The influence of foreign brands in the traditional peak season cannot be underestimated

According to the monitoring data of the Orvieto Net Daily, Sony TV's share of monitored retail sales rose by 5.4% year-on-year. For the first time in five years, it became the No. 1 retail brand for the National Day season. AO Smith maintains an absolute leading market share in both water purification and electric water heaters and gas water heaters. Siemens in the field of refrigerators and washing machines, despite the scale of the decline caused by the broader market decline, but still with the product and brand advantage to maintain the top two positions in the market; Panasonic washing machine also showed a 0.7% increase.

Five factors cooling the National Market

Wen Jianping, chairman of Owen Cloud Network, believes that there are five main reasons for the cold weather in the National Day market.

One is the pre-holiday promotion closure and the double attack of the double 11. First of all, the promotion closure represented by 909 and brand day advance overdrawn the market. In addition, due to rising panel prices and rising prices of white raw materials and other reasons, household electrical appliance prices have remained high, so that consumers expect the double 11 increase. Under the double attack, the promotion period of the National Day is facing tremendous growth pressure.

The second is the lagging impact of property purchase restrictions. The year of 2016 is known as the most stringent regulation in the history of the property market. The regulation and control efforts have been continuously upgraded, the intensity of first-tier cities has been continuously increased, and the second- and third-tier cities have restricted purchases and restarts, resulting in a significant decline in real estate transaction volume. As we all know, when the performance of the real estate market acts on the home appliance retail market, there is a certain lag effect. Now that the lag effect has emerged, it has significantly affected the market in the second half of the year.

Third, the population mobility season has turned into a tourist season. Today's National Day plus 8 days of the Mid-Autumn Festival will undoubtedly provide people with more convenient travel conditions. According to data from the National Tourism Administration, there will be 710 million person trips during the 8 days long holiday, which is an increase of 10% from 2016. It is reported that on October 1, the country received a total of 113 million tourists, a year-on-year increase of 10.5%. Behind consumers' passionate travel is the loneliness of home appliance stores.

Fourth, the company's investment in promotional resources has tightened. The decentralization of offline promotions, the gradual decline of the status of the traditional offline node, the company's expectations for the National Day promotional period has been lowered, so some companies have reduced promotional spending. In addition, the continuing rise in raw material prices in the white-water market has also exerted pressure on the operating profits of enterprises, and is also one of the reasons for companies to tighten their resource input.

The fifth is the diversion of electricity providers. Although the growth bonus of the e-commerce market has been continuously declining, it cannot be overlooked that it is still the backbone of the scale growth of household appliances in various channels. The diversion of the e-commerce market is also an important reason for the declining market under the promotion period this year.

Although sales are unsatisfactory, there are many highlights in the market

During the National Day promotion period, the average price of all categories rose across the board, including the reasons for the increase in raw material prices caused by companies to adjust their price strategy, but the main reason was the product structure adjustment.

Average price and year-on-year ratio of sub-products in the retail market under the national wire between September 27 and October 3, 2017

Source: Daily monitoring data under AVC Cloud

The average price of the main household electrical appliance enterprises rose in different ranges. The average price of Hisense TV rose by 15.5%, Skyworth's average price rose by more than 20%, the average price of Haier refrigerators and washing machines rose by 13.9 and 18.9% respectively, and the average price of Little Swan washing machines rose by 12.8%. Gree's average air-conditioning price rose 9.4%.

Behind the rise in average price, product upgrades are the main driver. Product structure and configuration upgrade is also a major highlight of this year's National Day promotion. The data shows that the retail penetration rate of smart and UHD color TV reaches 98% and 92% respectively, the penetration rate of curved TV reaches 16%; the air-cooled refrigerator has full control of the market, and retail penetration rate is as high as 97%, while the frequency conversion and smart refrigerator Permeability also reached 84% and 24%, respectively, while the proportion of retail sales of 601-700L large volume refrigerators also exceeded 21%; drum washing machines accounted for nearly 78% of retail sales, including washing and drying one continuous high-speed development momentum, retail sales Accounted for nearly 32%, 8.1KG + large-capacity washing machine retail accounted for as high as 56%, smart washing machine accounted for 51%; inverter air conditioner continued penetration, accounting for nearly 87% of retail sales, intelligent air conditioner accounted for more than 50%.

The Enlightenment Behind the Cold Market

Wen Jianping believes that the cold weather under the National Day home cable market first shows that market competition is further concentrated in leading companies. Leading companies have scale advantages and industrial chain pricing rights. Their marketing capabilities, resource integration capabilities, and cost-digestion and transferability are strong. At the same time, competition among leading companies has become increasingly fierce. The future market conditions of a number of long-tailed companies will be even more stretched.

Second, the rapid transition from price war to value war. From the data point of view, the average price of all categories of household appliances during the National Day Promotion Period has risen without exception. At the same time, the average price of leading companies has also risen. The entire household appliance industry is abandoning the traditional price war and quickly moving toward value. Battle transformation. This is a new strategic issue for the entire industry. How our home appliance companies adapt to this transformation will have a far-reaching impact on future industry development direction and marketing model;

Third, at present, the home appliance market is in a critical period of product quality, technology, and configuration upgrade. The demand for upgrading and upgrading has made the market's requirements for quality and brand awareness unprecedented. Household appliance companies should step up the upgrade of service and business philosophy, and change from operating products to business users, while grasping high-end users, grasping high-end channels, pushing new sales, increasing the consumer experience of terminal channels, and increasing the sales capacity of terminal sales personnel;

Fourth, from the cold weather during the National Day promotional period, it is basically possible to speculate that in the fourth quarter of this year, there will not be too much surprise performance. This basically determines the "high before and after low" situation of the home appliance market in 2017.

“It should be noted that although the urban market is sluggish, the online market is still the best channel for development in the home appliance market.” Wen Jianping said that data from Ove Cloud Network shows that from September 27 to October 3 During the period, the sales growth of Jingdong and Tmall's home appliances were generally between 30 and 50%, indicating that the e-commerce channel is still the fastest growing industry channel.

In addition, due to the National Day Mid-Autumn Festival 8 days long holiday-driven return of the tide, and the National Day Mid-Autumn Festival in the traditional status of the rural areas, all give the home appliance market sales will bring significant support, so Ovid cloud network to determine the vast three or four line market There is still a certain amount of room for growth in household electrical appliances. The above two factors can, to a certain extent, make up for the inability of the offline urban market to exert negative influence on the scale of the industry.

Wen Jianping said that Ovid Cloud Network (AVC) expects that in 2017 China's home appliance omni-channel retail market will achieve retail sales of 786.7 billion yuan, up 8.0 percent year-on-year. The development between the various categories continued to show an unbalanced trend. The competition in the home appliance market gradually shifted from the decisive battle room to the decisive battle kitchen.

2017 China Household Appliances Terminal Retail Market Forecast (100 million yuan)