The Development Situation of Household Appliances Market

The development situation of household appliances market

The influence of the global financial crisis has already spread to the real economy gradually. In this depressed circumstances, the government issued some policy which can expand domestic demand and adjust structure of the market.

A. Current Situation.

a. Consumer demand. As the level of economic progress, people's consumption level also rise gradually, it is not a problem to buy household appliances for most people in the income level nowadays. Because the competition is intense and the market has been basically saturated, price is getting lower obviously in recent years. As most of the families already have had all the basic equipped, which lead consumers to buy household appliances for displacement. For a small number of the consumers who want the high-end home appliance, quality and service is the main purpose of the purchase.

According to the current urban household income and consumption levels, the price of home appliances now is around thousands of Yuan, which are the intermediate goods. This means the demands of cheap goods is bigger and less demands for high-end goods in the market.

b. Cost. The manufacturing cost of the appliances are not only limited to the rising material prices, but also the transportation prices, sell lease prices, and staff wages are also rising. This make the profit space become limited, and there is also competition between brands, so many home appliance enterprise suffer a survival problem. In this grim market environment, the rising cost can only be digest internally. The enterprise which have the cost-control and risk-resist ability is equal to have a sustainable competitive advantage.

c. The market and opportunities. Great opportunities and challenges exist at the same time. Those products which have advanced technology, excellent quality and low price will be more popular. Some low technology products with high repair rate will be eliminated. So these factors will make enterprise to speed up the development of new technology, Only the development concept, organization structure, business processes, quality management, marketing and other aspects adjust to a new high level, will fully make the enterprise get a new development.

B. Growing Trend.

a. Cost management will become the primary part. Consumers intend to buy more low-end goods, so the price of the low-end goods will rise unlikely. Raw material prices and finished product prices will decline reduced profits at the same time, so if an enterprise want to get the profit growth, it will be look for a new profit growth point. They usually improve the material utilization, optimization of product specifications and other countermeasures. In addition, enterprises can also get the cost compression effectively by finding the