Another well-known electrical appliance declined, for 20 consecutive years is the sales champion, and now the market is basically invisible

In recent years, with the rapid development of the mobile Internet, all kinds of goods can be purchased online, and many large and small home appliances are also purchased online. The high transparency of prices, the consistency of after-sales and security and offline, these characteristics have made the purchase of home appliances online mainstream. Now the popularity of the home appliance industry has also allowed many companies to begin to transform into this industry, among which Xiaomi-based OEM home appliances are very popular with consumers.

Television sets, as the main consumer goods of home appliances, have now been reduced to decorations in the home appliance market, and many family television sets have appeared as daily decorations. Some TV manufacturers have not succeeded in pursuing diversified development, and have eventually been eliminated by the market. This well-known electrical appliance has now declined, and the sales champion has been the champion for 20 consecutive years, and now the market is basically invisible.

First, the development history of Changhong electrical appliances

Most of the television sets in the early years of the mainland were imported products such as Sony and Hitachi, and their expensive prices were very mismatched for the consumption level of the mainland at that time. At this time, many domestic TV brands stood out, among which Changhong, TCL Ace, etc. successfully occupied the market with their superior quality and excellent price.

Speaking of Changhong color TV at that time, it can be said that it was a household name, and Changhong color TV has always been the top stream in the eyes of consumers, both in terms of sales and word of mouth. In the 1990s, Changhong color TV sales accounted for one-third of the mainland market share, and it was also the sales champion for 20 consecutive years.

At that time, when Ni Runfeng took over as the director of the factory, television sets were just beginning to become popular, and many families still used black and white televisions. At this time, Ni Runfeng went abroad to investigate and found that Japan's production and research on color television is very advanced. After returning to China, Ni Runfeng bought a color TV production line from Japan, and Changhong Electric Appliances began to develop rapidly and occupy the market in the color TV industry from this time.

Subsequently, Changhong Electric Appliances only relied on the sales of color television sets, and set a sales record of 190 million yuan in that year. But Changhong electric appliances have not been so brilliant, Ni Runfeng purchased color TV production line has become less popular over time, the development and progress of the TV industry has made consumers more choices.

Second, 20 consecutive years of sales champion

At this time, in the face of a large number of competitors in the market, Ni Runfeng chose to fight a price war with them, and the long-term sales volume has allowed Changhong Electrical Appliances to earn back the cost of introducing the production line, and the price war at this time is Changhong's advantage. Once the price reduction promotion was opened, the market was quickly won by Changhong Electric Appliances, which became the sales champion of the color TV industry that year, and this champion was won by Changhong for 20 consecutive years.

In 1992, the sales volume of Changhong Electric's television sets had exceeded 1 million units, and the market share of Changhong color TV in the mainland was as high as 20%. At this time, Changhong Electric Appliances has tasted the sweetness of price reduction promotions, and he began to continuously reduce prices and sales, and launched new products to continuously occupy the market by reducing the price of old products.

Changhong's price reduction promotion not only did not bring losses to itself, but also brought it huge sales, from 1996 to 2000, the total sales of Changhong color TVs exceeded 30 million units. However, blindly fighting the price war makes Changhong Electric Appliance lag behind other companies too much in research and development, at this time, even if it is a price reduction promotion, Changhong color TV still has a very large inventory backlog in the warehouse.

Subsequently, Changhong Electric Appliances began to gradually decline, and cooperating with foreign companies to sell brought huge debts to themselves, and Ni Runfeng also left the position of chairman. Since then, Changhong has changed the appearance of the sales champion and become a third-line brand that no one cares about, and now changhong TV is basically invisible in the market, so what is the reason for The failure of Changhong?

Third, what caused the loss of the market Changhong

In fact, Changhong should decisively improve its product level after gaining an advantage in the price war, but Changhong still uses old production technology, and with the continuous development of science and technology, it will naturally be eliminated by the times. Especially at that time, when the world's television sets were using LCD screens, Changhong still chose backward plasma technology in order to achieve price advantages, which was not aggressive in the eyes of consumers.

In terms of diversified development, although Changhong has produced a number of home appliances such as air conditioners and refrigerators, its market share is only less than 2%. And the original home appliance market has been occupied by such established enterprises as Gree and Midea, and Changhong, as an outsider who has cross-field entry, naturally cannot succeed.

It can be said that Changhong Electric Appliances has embarked on a road of no return on the road of development, which not only has not brought new benefits to Changhong, but even dragged its legs in the field of Changhong's original television. However, the core factor is still because Changhong's own development limitations are too large, and it does not grasp the law of industry development and eventually leads to the loss of the market.

According to the data of Changhong TV, the TVs launched by many mobile phone companies are now produced by Changhong FOUNDRies, such as Xiaomi and Huawei. It can also be seen that in fact, Changhong itself has the power of research and development and production, but it is because of its own choice that the development has tilted, and the abandonment of the market has also made Changhong become the current situation.

As early as 2014, Changhong TV has been sold to Hongou Company, and Changhong Color TV has disappeared in the long river of history. But Changhong has left a piece of advice to the entire industry, the price advantage is only short-lived, and only continuous research and development and progress can obtain consumer choice.

summary

The development of the times makes enterprises must keep up with the pace of development, once behind the times, then only you can be eliminated by the times. Nowadays, in the field of television, there is not only the existence of the old powerhouse Sony and Samsung, but also some independent brands in the mainland have begun to occupy the market Xiaomi, Huawei and other emerging brands have also begun to become new choices for consumers.

Do you know anything about the development of Changhong TV? What do you think is the reason for Changhong's failure? What should the development of the TV industry rely on?