In an in-depth dialogue on February 4, Wu Chen, editor-in-chief of The Economist Business Review, and Zhang Ruimin, founder of Haier Group, jointly discussed the current situation of China's manufacturing industry and its development challenges. Zhang Ruimin pointed out in the conversation that China's manufacturing industry is facing a crossroads, and many companies seem to have lost their way. He analyzes two aspects of this phenomenon: first, some companies used to do OEM mainly for foreign brands, and they thought they had been doing well, but over time, these foreign brands began to reduce imports from China and moved the manufacturing ** chain elsewhere, causing these Chinese companies to fall into trouble. Secondly, Zhang Ruimin pointed out that the current domestic platform economy is mainly driven by e-commerce, which has led to fierce competition between enterprises, especially on e-commerce platforms. Therefore, he believes that China's manufacturing industry urgently needs to be transformed. Light Knowledge
Zhang Ruimin further emphasized the importance of enterprise empowerment, and mentioned that Haier is accelerating this process and realizing empowerment through the transformation from products to scenarios. He suggested that companies that join the co-creation solution can achieve higher benefits, but the number of companies participating is not enough at present, and the scale needs to be continuously expanded. As a leading home appliance manufacturer in China, Haier has successfully built an open and cooperative ecosystem through an innovative ecological co-creation model, which has injected strong impetus into the sustainable development of the enterprise. This business model is based on open cooperation and resource sharing, which not only emphasizes cooperation between enterprises, but also includes co-creation of value with leading companies, partners, consumers and other parties.
The growth of the global home appliance market also provides huge opportunities for companies such as Haier. According to Statista, from 2015 to 2021, the global home appliance market size showed an overall upward trend, with the market size exceeding $500 billion in 2017 and reaching $640 billion in 2021, an increase of 811%。In terms of specific product types, refrigerators, vacuum cleaners and freezers all accounted for more than 15% of sales, while dishwashers, washing machines, small kitchen appliances and other products also sold well, accounting for more than 5% of the market share.
In the revenue ranking of global home appliance companies, Midea ranks first with a home appliance revenue of about 42.1 billion US dollars, followed by Haier with a home appliance revenue of 36 billion US dollars, and LG's home appliance revenue is 22.9 billion US dollars. Whirlpool, Gree and BSH Home Appliances Group are also among the top in terms of revenue scale.
In terms of the development plan of the white goods business, Haier Smart Home will continue to expand its competitive advantages in the fields of refrigerators, washing machines, water heaters, etc., and consolidate its leading position as a high-end brand. tap the market potential of kitchen appliances, air conditioning and other businesses; Accelerate the growth of emerging categories such as clothes dryers and dishwashers, and actively expand new business areas such as household appliances and cleaning appliances; Continue to strengthen the construction of the three-winged bird scene brand and build the competitiveness to adapt to the development of the times.
According to the research report released by China Merchants **, the export of white goods has shown a clear improvement trend with the support of inventory replenishment. It is expected that by 2024, the improvement trend of export sales will be clearer, and inventory replenishment will support the rapid growth of orders. In terms of domestic sales, multi-category, channel sinking, and brand grading strategies will provide market resilience. Leading home appliance companies are generally expected to contribute double-digit growth, while continued share buybacks and rolling equity incentives will ensure the stability of business strategies. More industry research, analysis and planning suggestions provided by the Prospective Economist App Information Group will further contribute to the long-term development of the home appliance industry.