There is a huge potential for home appliances companies in the tertiary and tertiary markets

At present, China's rural household appliance market mainly focuses on individual distribution. In this situation, there are cases where the procurement channels are disorderly and the competition is not standardized, which also results in uneven quality of the rural household appliance market and lack of after-sales services. In recent years, e-commerce has had a severe impact on the channels of traditional home appliances. However, due to the restrictions on logistics and distribution, the focus of e-commerce is still in the first-tier and second-tier cities, and there is no involvement in the 34 markets.

Some industry insiders believe that the mainstream of China's future consumption must be in the 34 markets. According to statistics, in 2012, the size of the urban appliance market decreased by 7.6% year-on-year, while the rural household appliance market grew by 3.7%. The channel construction of household appliances enterprises in the primary and secondary markets has been sound and the sales channels have been sinking. The active layout of the 34 markets has also become the consensus of the household appliance enterprises.

Urbanization accelerates consumer electronics consumption

In the process of urbanization, as the income of residents increases and the living environment improves, consumers’ demand for household appliances is also increasing. According to statistics, by 2020, if the urbanization rate in China reaches 62%, the rural market will Accumulated sales of new appliances amounted to 4.5 trillion yuan, and it has to be said that the development of urbanization has led to consumer electronics market consumption.

In the process of urbanization, the air-conditioning industry is the most influential one. With the improvement of the living environment, the demand for air-conditioning in rural areas is very large. At present, the air-conditioner retention rate in the third and fourth-tier markets is still relatively low, household appliances enterprises and sales. Businesses are targeting the 3rd and 4th home appliance market. With the saturation of the primary and secondary markets, the 34 markets have become the focus of air-conditioning business competition.

Appliance companies are committed to channel sinking

The current rural household appliance market mainly focuses on self-employed households and husband-and-wife shops as the main form of township appliance retailers. Although Gome and Suning are strongly advancing into the county market, the effect is not good. Household appliance companies are also committing themselves to channel sinking. The market is mainly based on chain operations and integration of channels.

Su Liang, consulting brand director of Aowei Consulting, said in an interview with an appliance network reporter that urbanization is the best opportunity for home appliance companies. As a home appliance company, it is necessary to formulate products and pricing strategies that are suitable for the third and fourth-tier markets and promote rural areas as soon as possible. The construction of outlets, together with strict quality and service sales, can take the lead in occupying the commanding heights of the 3rd and 4th markets.