thesis

Title: Analysis of the Road of Refrigerator Industry in China

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abstract

As an early household appliance, refrigerator has been developed in China for more than 20 years. After years of price war and rapid development, the refrigerator market in China has matured. This paper analyzes the development of refrigerator industry in China. This paper is divided into five chapters: the first chapter introduces the basis of refrigerator; The second chapter introduces the present situation and marketing channels of refrigerator industry in China. The third and fourth chapters focus on the rural market, the main market of the future refrigerator market in China. The fifth chapter briefly analyzes the development direction of refrigerator itself in China. This book is based on a wide range of materials, only expressing personal views, for reference only.

catalogue

..............................................................., I

......................................................... II

The first chapter summarizes ...................................................... 1.

1. 1, the invention of refrigerator ................................................ 1

1.2, refrigerator principle ................................................ 1

Chapter II Refrigerator Marketing Channel .......................................... 2

2. 1 Status of Refrigerator Industry in China ........................................... 2

2. 1. 1 production scale ............................................... 2

2. 1.2 technical advantages ............................................... 2

2. 1.3, market demand ............................................... 3

2.2 Overview of refrigerator marketing channels in China ....................................... 3

2.2. 1 evolution of refrigerator marketing channels in China ............................. 3

2.2.2 Status of Refrigerator Marketing Channels in China ................................. 6

2.2.3 China refrigerator marketing channel trend ................................. 8

Chapter III Development of Rural Refrigerator Market ....................................... 12

3. 1 rural refrigerator industry .............................................. 12

3. 1. 1 market background ............................................... 12

3. 1.2 meaning of market and rural market .................................... 13

3. 1.3 characteristics of rural consumer market ...................................... 14

3. 1.4 China rural refrigerator market capacity .................................. 16

3. 1.5 Problems in the rural refrigerator market ................................ 18

3. 1.6 rural market consumption characteristics ...................................... 19

3. 1.7 rural market dealer demand .................................... 20

3.2 Integration of resources, attack the rural market in ...................................... 22

3.2. 1 personnel efficiency .......................................... 23

3.2.2 Product Problems .............................................. 24

3.2.3 Brand Promotion .......................................... 24

3.2.4 After-sales service problem .......................................... 25

Chapter IV Subdivision Method of Rural Refrigerator Market ........................... 27

4. 1 Selection of market segmentation criteria ......................................... 27

4.2 Market Segmentation Method ............................................. 29

4.3 Market Segmentation Structure Analysis ........................................... 3 1

Chapter V Future Development Direction of Refrigerator ...................................... 33

5. 1 Energy saving is more popular in ............................................. 33

5.2 Luxury refrigerators are becoming more and more popular in China, .......................................... 33

5.3 Partition preservation began to be popular in ...........................................

5.4 Detail design into life .......................................... 34

Conclusion ............................................................ 36

Due to ............................................................ 37

Refer to ........................................................ 38

The first chapter is an overview.

1. 1, the invention of refrigerator

Perkins, an American who works in Britain, made a new discovery, which led to the invention of refrigerator. In 1834, he found that when some liquids evaporate, there will be a cooling effect. Perkins asked a group of technicians to make a working model that could prove the idea.

Sure enough, this device really produced some ice in one night. The mechanics excitedly took the ice cubes, jumped into a carriage and hurried to Perkins' house to show him their achievements. Perkins was old at this time. Although he didn't sell his invention in the market, Harrison's work paved the way for early human household refrigerators.

John harrison, a Scottish printer living in Australia, sells inventions. Harrison may have discovered the cooling effect without knowing Perkins' results. He cleaned metal type with ether, and one day he noticed the cooling effect of this substance. By 1862, his first refrigerator was on the market. Harrison also established the first refrigeration workshop in a brewery in Bendigo, Victoria. /kloc-at the end of 0/9, only the rich who build an ice bank can enjoy this benefit. What most people expect is a refrigerator.

At that time, one of the most important uses of refrigerators was on ships. Large cold storage means that ships can carry edible fresh meat on long-distance voyages, such as mutton, which can be exported from New Zealand to Europe.

German engineer Karl von Linde made the first household refrigerator in 1879. But before the invention of refrigerators in the 1920s, refrigerators did not enter the home on a large scale.

1.2, refrigerator principle

Refrigerators use evaporative refrigeration or gasification to absorb heat to achieve the purpose of refrigeration. In the throat of the refrigerator, there is a commercially called freon, commonly known as refrigerant. The refrigerator mainly works through the compressor, so that the temperature of the refrigerant changes due to pressure, and then it goes to the condenser to cool down (the condenser is on both sides of the refrigerator, which is hot when radiating), and then it goes to the drying filter to filter water to avoid ice blocking. Through the capillary tube surrounded by copper tube with inner diameter of 0.6mm, the pressure of low temperature and high pressure vapor-liquid mixed refrigerant can be reduced, and the evaporator absorbs excess heat, releases cold air and finally returns to the compressor. These parts are welded to each other and installed together. The refrigeration system used to send refrigerant to the whole body of the refrigerator is like blood vessels in the human body.

Chapter II Refrigerator Marketing Channels

2. 1 Current situation of refrigerator industry in China

The refrigerator industry in China started in 1980s. After 20 years of rapid development, the total output has made a leap in recent years.

2. 1. 1, production and sales scale

According to the statistics of China Household Electrical Appliances Association and other research institutions, the total production capacity of refrigerator enterprises in China reached more than 30 million units in 2004, accounting for about 60% of the world's refrigerator production capacity. Among them, Kelon (Rong Sheng), Haier, Xinfei and Meiling account for more than 60% of the production capacity and market share. In 2004 10-6, the cumulative output was14,249,200 units, an increase of 3 1.7% over the same period of last year. In terms of sales volume, according to the data of 188 cities 1200 shopping malls monitored by Zhongyikang, the cumulative sales volume in 2004 was 5.69 million units, while in 2003 it was 5.25 million units, up 8.4% year-on-year.

The refrigerator industry in China has initially completed the integration. Since 2002, Kelon has participated in the disposal of state-owned assets of five state-owned refrigerator manufacturers, including Jinuoer, Xiling, Shang Ling and Far East ariston, and invested in new refrigerator production bases in Yangzhou Kelon and Zhuhai Kelon, and quickly established a refrigerator industry group with an annual production capacity of over 6,543,800 units, becoming the largest refrigerator manufacturer in Asia and even the world.

In addition, in recent years, Midea, TCL and other new refrigerators have also accelerated the pace of integration of the refrigerator industry through capital operation. Midea has successfully acquired Rongshida and Valin, and completed the reorganization of superior resources.

2. 1.2, technical advantages

There is no obvious gap between China refrigerator enterprises and foreign enterprises in product technology, and even in the leading position in energy-saving technical indicators. For example, the BCD-208K/ and BCD-209S series refrigerators introduced by Haier and Kelon have a daily power consumption as low as 0.35 degrees, which is higher than the European A++ energy-saving standard. In addition, Haier, Kelon, Meiling, Xinfei and other brands have launched related products in the market, from single door to double door to three door to opposite door, from mechanical temperature control to computer temperature control to fuzzy temperature control. Even if it is difficult to develop luxury refrigerators with high technical level, enterprises such as Kelon have their own patented technology and can have the ability of mass production.

However, the technical design and manufacturing level of refrigerator enterprises in China still lags behind foreign brands. Among the refrigerator enterprises in China, Haier's product design ability is relatively good, but as far as I know, Haier itself does not attach great importance to improving the process design ability of enterprises, but outsources related business to other enterprises or buys drawings from them. So there is still a big gap between China enterprises and foreign brands as a whole.

2. 1.3, market demand

China refrigerator market still has great growth potential, the main reasons are as follows:

First, judging from the macroeconomic situation, China's economy is still in the stage of rapid growth, with a high GDP, and people's consumption capacity can be improved. As long as effective measures are taken to stimulate consumption, purchasing power can be promoted and effective demand can be formed.

Second, the real estate industry is developing rapidly. The lagging consumption brought by the real estate industry itself a year or two ago broke out this year and will continue to affect the refrigerator market in the future.

Third, the refrigerator industry has entered a renewal period. The refrigerator industry in China has experienced explosive growth from 65438 to 0994. After more than ten years' accumulation, it has entered the renewal period this year.

Fourthly, foreign brand refrigerators represent a direction in product design and application of new technology, which has certain enlightenment to domestic enterprises, but the high price keeps most potential consumers out. China refrigerator manufacturers can compete with foreign enterprises as long as they pursue technological progress and highlight product cost advantages.

Fifth, from a nationwide perspective, the rural market still has a lot of room for development. Timely launch of low-end products with low technology content and good quality and low price can also increase sales.

2.2 Overview of refrigerator marketing channels in China

2.2. 1, evolution history of refrigerator marketing channels in China.

(1) China refrigerator marketing channels from the late 1970s to the mid-1980s.

The refrigerator industry in China was developed by introducing foreign production lines in the late 1970s. From the late 1970s to the middle and late 1980s, in terms of channel mode, manufacturers were in the exploratory stage, basically relying on the state-owned commercial distribution system, and the mode was relatively extensive, generally adopting the mode of regional total distribution, that is, the mode of manufacturers-wholesalers (regional general distributors)-state-owned department stores-consumers; Most retail terminals are refrigerator counters in state-owned department stores.

In the distribution of channel power, state-owned department stores occupy a completely dominant position. In view of the seller's market at that time, the market development was very imperfect, and the manufacturers were similar to the manufacturers' workshops. In terms of product line organization, channel price system formulation and control, channel promotion and after-sales service, manufacturers have little power and responsibility, and their ability to control channels is very weak.

There is little difference in channel modes among manufacturers. The main difference between manufacturers is that they have formed channel advantages in their respective locations, while in other regions, especially those far away from the location of manufacturers, the channel construction of manufacturers is often quite weak and the channel coverage rate is low. This has a lot to do with the underdeveloped logistics system and strong local protectionism in the market. The channel construction of various manufacturers is influenced by many non-market factors.

(2) The marketing channels of refrigerators in China from the late 1980s to the early 1990s.

Since the late 1980s, with the development of state-owned department stores shrinking, home appliance stores have gradually emerged. From the end of 1980s to the mid-1990s, the mode of refrigerator channel at this stage is more complicated, including not only the regional total distribution mode, but also the regional multi-dealer system mode. The channel strength gradually tilted towards refrigerator manufacturers, who began to pay attention to sales to department stores and home appliance stores, and began to undertake channel functions such as after-sales service, price system formulation, and control.

Non-market factors that have a great influence on channel construction gradually weakened, and manufacturers began to set up offices in various markets across the country, sending salesmen or clerks to take charge of promotion, after-sales service and other affairs, and the marketing network of manufacturers' service market began to take shape. With the emergence of various refrigerator channel models in various regions, the channel models among manufacturers began to show great differences. With the development of China refrigerator industry to a certain stage, the first large-scale price war broke out in China refrigerator industry; With the outbreak of fierce price war, manufacturers began a fierce battle for channels. It was during this period that the domestic refrigerators in China surpassed the foreign refrigerators represented by Japanese refrigerators in market share for the first time. Many domestic refrigerator manufacturers began to implement intensive distribution strategy, and horizontal channel conflicts began to appear.

At present, the characteristics of refrigerator channels in China mainly emphasize sales promotion, and many manufacturers attach importance to channel promotion. Various complicated policies, such as large household policy, rebate policy and channel pressure policy, constitute the main content of channel promotion. The cooperative relationship between manufacturers and merchants has been strengthened to a higher degree at this stage.

(3) Marketing channels of refrigerators in China in 1990s.

In the 1990s, the refrigerator market showed the characteristics of buyer's market, and the third-and fourth-tier markets accounted for an increasing share of refrigerator sales. The channel model is: the regional total distribution system and the regional multi-dealer system are equally important, and the channel model is more complicated. The proportion of state-owned department stores in the total retail sales of refrigerators has declined, while the proportion of refrigerator sales occupied by household appliance franchise stores across the country has risen rapidly, and large household appliance sales chain enterprises such as Gome and Suning have gradually emerged.

The distribution of channel power among manufacturers is relatively balanced, emphasizing cooperation among manufacturers. In the channel organization of manufacturers, a strong national marketing network has been formed, which is embodied in the sales department of headquarters and sales branches and offices all over the country.

At this stage, manufacturers began to pay special attention to channels, and channels have gradually become a factor in building manufacturers' competitive advantage from a simple distribution system. Manufacturers pay special attention to channels, adopt the policy of large households, increase the promotion of channels, and make substantial rebates, all of which are customary promotion strategies. The channel competition among manufacturers is mainly manifested in the competition for resources for large wholesale households. Due to the coexistence of various channel modes, horizontal channel conflicts and vertical channel conflicts have intensified; The risk brought by the choice of various channels by manufacturers increases. Manufacturers began to pay attention to the problem of intensive distribution and began to change channels one after another; Various manufacturers began to form their own systematic channel models and strategies.

At present, the biggest feature of channel organization is that the sales network of manufacturers often obtains the property rights of refrigerators or greater profit sharing rights to varying degrees, and high sales incentives and commissions prevail. The channel risk and cost of manufacturers have increased sharply. Channel promotion is mainly based on various kickbacks and kickbacks, and attaches importance to the placement of mass media advertisements such as TV. The importance of terminal promotion began to appear. Complex problems such as increased channel conflicts and high channel costs began to plague manufacturers.

(4)2 1 century China refrigerator marketing channels.

2 1 century China refrigerator industry, different manufacturers, different regions of the channel model is quite different. Each manufacturer has its own emphasis according to the actual situation of each manufacturer and region, combined with the regional total distribution system, regional multi-dealer system and direct sales system; In the primary and secondary markets in developed areas, direct selling system is generally implemented for the powerful modern channels formed by large chain enterprises represented by Gome and Suning; In the third-and fourth-tier markets in developed areas and the vast central and western markets, the traditional channel model of agent-wholesale-retail is adopted, and the regional total distribution system and regional multi-dealer system are implemented.

The channel models of various manufacturers have formed distinct characteristics and each has its own advantages; As an integral part of marketing strategy and even enterprise strategy, channel has become an important factor in the core competitiveness of enterprises. Because of frequent channel conflicts and high channel costs, the refrigerator market in large and medium-sized cities is saturated, and the refrigerator market in the third-and fourth-tier markets rises, and channel changes frequently occur. The complexity of channel policy and the differences of channel model and structure in different regions are very obvious.

The importance of the terminal in the channel is obvious. Consumers' brand awareness is enhanced, and consumers' autonomy in purchasing refrigerators is greatly increased. Especially with the rise of large-scale retail stores, channel flattening is prevalent, prices are greatly reduced, and another round of price war begins, and the profit margin of refrigerator marketing channels is greatly reduced.

In the distribution of channel rights, for large chain commercial enterprises, the channel rights of manufacturers are completely lost. Commercial enterprises are responsible for the promotion of some channels, which almost completely determines the formulation and control of the price system. Commercial enterprises are also responsible for most after-sales services. For enterprises or regions that adopt regional total distribution system and regional multi-distribution system, channel power is dominated by manufacturers. Promotion is supplemented by advertising promotion, and attaches great importance to channel promotion and terminal promotion.

At this stage, the characteristics of refrigerator channels in China are that the refrigerator channel models of various manufacturers are basically stereotyped, large household appliance chain enterprises are playing an increasingly important role in refrigerator marketing, terminal promotion is the main substitute for channel promotion, the central and western markets and the third and fourth-tier markets in developed regions have become the focus of channel management, and flattening channels, reducing channel costs and tilting promotional resources towards terminals have become the channel strategies generally adopted by manufacturers.

2.2.2. Current situation of refrigerator marketing channels in China

In the current refrigerator market in China, domestic brands are represented by Kelon (Rong Sheng), Haier, Xinfei and Meiling; Foreign brands are represented by Siemens and Electrolux; Its marketing channels have their own characteristics. The refrigerator sales of these manufacturers account for more than 90% of the national refrigerator sales, and their distribution channels can be basically divided into three categories: the channel model based on self-built network represented by Haier, the channel model based on regional total distribution system represented by Electrolux, and the channel model based on the combination of regional total distribution system and management vertical marketing channel structure represented by Kelon. The above three channel modes will cross each other in the channel structure of a manufacturer in different regions and different periods, but they generally represent three distinctive modes of refrigerator channels in China.

(1) Self-built network channel model represented by Haier.

Its external characteristics are: Haier has set up 42 industry and trade companies all over the country, and set up offices in prefecture-level cities to assist sales; Haier's industry and trade company has logistics center and warehouse; In terms of channel organization, in the primary and secondary markets, in-store shops and Haier refrigerator counters are the main ones, and no specialty stores are set up in principle; Establish specialty stores in the tertiary market and some secondary markets. At present, Haier has built nearly 65,438+0,000 stores nationwide, and started to establish Haier specialty stores in counties and towns across the country. Haier began to pay attention to the construction of refrigerator network in rural market and encouraged retailers to actively explore outlets. The business model of Haier stores is generally as follows: local dealers are responsible for leasing space, Haier is responsible for decoration according to the unified image standard of stores, stores must monopolize Haier's household appliances according to Haier's regulations, and products of any other company cannot be sold in Haier stores; Haier is responsible for training the management personnel of the exclusive store. In addition to self-built terminal network, Haier also attaches importance to entering local large-scale stores, especially large-scale home appliance chain stores, such as Gome and Suning. In addition, Haier will also choose to join some small household appliances as a supplement. Haier usually chooses several appliance stores in the same place.

Haier's refrigerator channel is a combination of single brand and multi-series, and the organization of channel product line is mainly medium and high-grade refrigerator models; Let Haier refrigerator use the brand image of the whole Haier family and increase TV advertisements; In the terminal, in fact, the channel logistics and price system are uncontrolled, and the phenomenon of goods smuggling is serious, but there are unified regulations on the appearance and image of the terminal; Small channel profit space; Attach great importance to the promotion of channel image by after-sales service; We used to pay attention to the primary and secondary markets, but now we are beginning to increase the intensity of the tertiary and tertiary markets.

The inherent characteristics of Haier refrigerator marketing channel model are: emphasizing self-built network, supplemented by entering large household appliance chain stores and a large number of small-scale franchise stores; Emphasize the control of channel terminals; Attach great importance to the distribution rate of Haier refrigerator; Emphasis is placed on consumers' pull on channels, while the role of channel thrust in sales is largely ignored.

(2) The regional general distribution model represented by Electrolux.

Its external characteristics are: a general agent will be selected in each province, who will be responsible for the channel development and terminal construction in this region, and most of its terminals are local stores specializing in shopping malls. This model has a lot to do with Electrolux being a foreign brand and not familiar with China's home appliance marketing channels when entering the China market. Another external feature of this model is that Electrolux pays special attention to the terminal construction, emphasizes that the promotion resources are inclined to the terminal, and rarely puts advertisements on the mass media. Similarly, Electrolux pays more attention to home appliance chain groups such as Suning and Gome.

Electrolux refrigerator also implements the strategy of single brand and multi-series combination; In the organization of channel product line, it is mainly equipped with high-end models; The third-party logistics company is responsible for logistics; The channel logistics and price system are strictly controlled, and the channel profit space is large; Pay attention to the primary and secondary markets and maintain the trend of the third and fourth markets; Pay attention to channel promotion and terminal promotion; The channel strength of manufacturers is small.

The inherent characteristics of this channel model in Electrolux are: emphasizing the advantages of local traditional channels and protecting the exclusive distribution rights of dealers in specific regions; Emphasis is placed on encouraging dealers to promote Electrolux refrigerators through greater channel profit space; At the same time, it also attaches importance to the important role of terminal promotion, and emphasizes the investment of manufacturers in materials, personnel and other resources for terminal promotion.

(3) The channel mode of combining the regional total distribution system represented by Kelon with the vertical marketing channel structure.

The external characteristics of this model are: on the one hand, it adopts the mode of regional general distribution; On the other hand, Kelon Company has established marketing branches in all provinces in China, which are responsible for local channel development and terminal construction, coordinating the contradiction between manufacturers and distributors, and giving full play to the marketing strength and subjective initiative of manufacturers. Kelon particularly emphasizes the cooperation between manufacturers and distributors. In fact, dealers all over the country only undertake some logistics and financing functions, and all other channel functions are actually controlled by Kelon Company. Kelon also attaches great importance to large household appliance chain groups, but at present, most of Kelon's sales are still completed by a large number of domestic store franchisees.

Kelon implements multi-brand and multi-channel product line combination strategy, and attaches importance to occupying the market through middle and low-grade refrigerator models; The third-party logistics company is responsible for logistics; By strictly controlling the cost of manufacturers, logistics and price system, we can ensure greater channel profit space; Frequently adjust channel members and strengthen terminal promotion; Channel strategy is at the core of Kelon refrigerator strategy.

The internal characteristics of Kelon channel model are: it emphasizes that dealers should actively undertake the logistics and financing functions in refrigerator channels by giving them more profit space, and puts great emphasis on pressing goods and occupying their funds; The key point is to ensure that dealers actively promote Kelon's refrigerator products; Emphasize the service and control of the vertical marketing channel structure managed by Kelon Company to dealers; Emphasis is placed on combining the resources of dealers and the investment of marketing personnel of Kelon Company to strengthen terminal promotion.

* * * Similarity of three channel modes represented by Haier, Electrolux and Kelon.

These three models basically represent the channel model of China refrigerator industry; Its * * * same characteristics are that it attaches great importance to terminal promotion while emphasizing channel promotion; While attaching importance to the markets of large and medium-sized cities, the focus of business channels is inclined to the central and western markets and the third-and fourth-tier markets; The flattening of channels and the downward movement of marketing centers have become common channel strategies.

In the product line design of the channel, all are high, medium and low-end refrigerator products, and refrigerators of various concepts are sold. Some appear in the form of a brand and multiple series, and some simply appear in the form of multiple brands. In the form of retail terminals, they all attach great importance to large household appliance chain enterprises; But it also attaches great importance to traditional commercial channels, but the control is different. In terms of distribution channels, they all follow the principles of intensive distribution and in-depth distribution, and build as many retail outlets as possible to improve the distribution rate under the premise of controlling channel conflicts.