In the new consumption environment, why do we need high-end electrical appliance ecology?

21st Century Business Herald reporter Ye Bihua intern Zhao Jingxuan reported in Shanghai and Guangzhou

On February 22, high-level executives from dozens of domestic and foreign leading electrical appliance brands such as Haier Zhijia, Aiou Smith, Fangtai, Boss, Hisense, AEG and so on gathered in Shanghai's tallest building to discuss the redefinition of high-end electrical appliances with Red Star Macalline and jointly shape the ecology of China's high-end electrical appliances industry.

Looking back at 2021, although the electrical appliance industry is facing many challenges, there is still a huge demand gap in the high-end market, which has become a structural opportunity for the home appliance industry. In this context, Red Star Macalline and many partners anchor the high-end electrical circuit to add more bright colors to the Chinese home appliance market at the beginning of 2022.

As the industry said, this is a scene of extraordinary significance in the history of China's home and home appliance industry. In the new consumption environment, China's home appliance market needs high-end electrical appliance ecology and urgently calls for its arrival.

Quality demand calls for high-end supply

When there is demand, the market will call for supply. This is the simplest economic principle, and it is also the starting point condition for leveraging the ecology of high-end electrical appliances. The reason for the need for high-end electrical appliance ecology is first of all because there is a demand for high-end and quality in the Chinese home appliance market that cannot be underestimated.

China's consumer goods market has long had a polar divergence of high and low, and the downgraded market has been extremely involuted, but the real and upgraded market demand is rarely really valued. For a long time, China's high-end home appliance market has been like an elephant in a room, huge in size, but people have ignored it. Especially in the electrical appliance industry, the differentiation between high-end and low-end has become more and more obvious in recent years, showing the characteristics of "weak total, but strong high-end".

He Donghui, co-president of Fangtai Group, told reporters that there are more changes in the electrical appliance industry, and what cannot be avoided is consumption upgrading: "For example, the typical transformation of housing, the adjustment of the national two-child and three-child policy, so that the more mature first- and second-tier markets have a strong demand for improvement, how to meet the demand in this regard, may be the next opportunity for growth." ”

In addition, there are reports that China's nearly 3 million high-net-worth individuals hold investable assets of 32.09 million yuan per capita, and the total investable assets are as high as 96 trillion yuan. Even in addition to the high-net-worth population, the needs of Chinese consumers are gradually moving towards high-end and quality; technological upgrading and product category expansion, unmet new consumer demand has given enough space for the development of high-end products.

Japanese scholar Shigeru Miura wrote in his book "The Fourth Era of Consumption" that the main characteristics of the third consumer social stage are: the consumption unit shifts from the family to the individual, and the consumption value orientation gradually shifts from high cost performance to focus on high quality and personalization. Debon Securities believes that based on the growth of residents' income and consumption concepts, habits and other factors, most of China is currently in the third stage of consumer society. With the pursuit of high-quality, high-tech living environment after the 90s, post-95 generation becomes the main group of social consumers, the new consumption trend is rapidly transmitted to the electrical appliance industry, and quality demand calls for the improvement of high-end ecology.

The steep divergence of the market has spawned a vast blue ocean that is real but barely taken seriously. This allowed Zhu Jiagui to see an opportunity.

"The purchasing power of high-net-worth individuals is extremely strong." As the executive president of Red Star Macalline Home Furnishing Group and the general manager of the big operation center, Zhu Jiagui has 12 years of experience in electrical appliances and 10 years of home shopping malls, under its keen business sense, Red Star Macalline has captured the market wind direction, comprehensively sorted out today's electrical appliance market, and redefined high-end electrical appliances that conform to the lifestyle of China's high-net-worth people.

The industry's new high-end electrical appliance ecological attempts have also been launched from here.

Complete ecology to make up for the shortcomings of channels

Different from ordinary consumer goods, high-end smart electrical appliances are a category of "heavy decision-making", with strong service attributes, low price sensitivity of its consumer groups, but high requirements for product performance and quality, more attention to experience and feeling, and huge demand for offline scenes. However, the reality is that for a long time, domestic high-end electrical retail channels have been in a "absent" state, and consumers can only go to high-end department stores or brand-owned stores to try their luck.

Similarly, for electrical appliance companies, the highly dispersed sales channels also make it impossible for them to form a synergy on the supply side, and it is difficult to provide customers with comprehensive one-stop solutions and refined operation services throughout the life cycle. Integration and co-creation of symbiosis can be a win-win situation; to grasp the high-end traffic market, it is inseparable from any one of brand owners, channel parties and distributors. Channels are a well-deserved bridge; with the pace of consumption upgrading, Red Star Macalline, as the first channel for high-end electrical appliances, takes the lead in building the first cornerstone of high-end electrical appliance ecology.

"Two or three years ago, China actually lacked a very direct channel that allowed consumers to buy high-end home appliances." Xu Jing, general manager of Red Star Macalline Intelligent Electrical Appliances Division, planted a seed in his heart at that time, "to seize those high-end crowds." But what kind of channels should be built to give brands enough product display space while taking into account the one-stop purchase experience of consumers?

After deep insight into the pain points on the supply side and the demand side, Red Star Macalline took the lead in breaking the situation and decided to create a high-end intelligent electrical appliance consumption field that is both To C and To B - that is, today's intelligent electrical appliance life hall. The emergence of Red Star Macalline Intelligent Electrical Appliance Life Hall has created a scene for high-end electrical appliance brands to display set products in an all-round way.

In the high-end electrical appliance life hall, it is a high-end electrical appliance ecology jointly built by upstream and downstream brands and dealers in the industrial chain. Zhu Jiagui said that in this ecology, Red Star Macalline is responsible for channels, in-depth operation of intelligent electrical appliances life hall, becoming the best bridge linking merchants and consumers; brand owners focus on product research and development and brand image building, constantly bringing amazing products that refresh the industry height; dealers focus on sales, providing consumers with the warmest service experience.

Guotai Junan pointed out that in addition to research and development and products, channel reform will be a key factor for electrical appliance companies to continue to change and improve operational efficiency, which is essentially an "arms race" between manufacturers. There is no doubt that in this arms race, Red Star Macalline firmly grasps the concept of "co-creation and co-creation" and makes a win-win commitment to brand owners and dealers in the form of building a high-end electrical appliance ecology.

"Red Star Macalline is undoubtedly the most important sales channel for our future brand building, and we will give priority to developing channels in Red Star Macalline because it will help us complete brand positioning." Li Yong, general manager of national sales at AEG and Electrolux, told reporters that the consumer experience scene built by Red Star Macalline is not available in ordinary sales venues. In his view, Red Star Macalline itself is a complete ecosystem, and brand owners can get more resources from it, "for example, the accurate resource flow of consumers, when consumers want to decorate their houses, the only one-stop solution is a large home store, not a simple store." "The complete ecological construction has undoubtedly helped the brand to promote all categories."

With the gradual improvement of the ecology of high-end electrical appliances, at least four dimensions of demand will be solved: the consumption upgrade needs of high-end consumer groups; the consumption potential of high-quality, high-end customers is stimulated; the high-end retail terminal demand of upstream electrical appliance brand manufacturers; and the needs of the entire industry and industrial transformation and upgrading. Red Star Macalline's high-end electrical appliance ecology not only creates a new fulcrum, but also leverages the positive cycle of the entire electrical industry chain.

The development of China's high-end electrical appliances stands at a new starting point, and establishing a sustainable win-win ecology is the common goal of all parties. Under years of deep cultivation, Red Star Macalline has established a large home ecosystem of "one horizontal and multiple vertical". In the future, Red Star Macalline's own position in the industry will become more indispensable. Zhu Jiagui predicts that Red Star Macalline will continue to upgrade, optimize and improve the ecology to create more value for partners.

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