Home appliance industry profit margins repair rate is high

Insiders pointed out that due to too many sales channels to increase prices, domestic appliance manufacturers are facing higher cost pressures. In the face of the huge market of China's 1.3 billion people, the home appliance market space has increased slowly, home appliance manufacturers are trying to increase profitability, but sales are weak and The high cost is still a real problem.

Appliance makers profit "pressed"

According to the reporter, at present, the average gross profit margin of products such as home electric color TV sets and refrigerators is 15%-20%, and brand premiums can reach 20%-30% higher for companies, and average gross profit margins for small household appliances and kitchen appliances are 20%-30%. At present, in all home appliance industries, the profit performance is relatively good for air-conditioning enterprises, and the average gross profit margin is about 20%.

The three quarterly report data shows that Qingdao Haier's gross margin was 25.39%, Gree Electric Appliance's gross margin was 24.81%, Midea Electric's 22%, Hisense's microelectronics' electrical gross margin was 17.58%, TCL's gross profit margin was 15.62%, and the household appliance industry's overall gross The interest rate is 24.95%. Most home appliance companies have lower gross profit margin than the industry as a whole.

A home appliance manufacturer told reporters that due to too many sales channels to increase the price, domestic appliance manufacturers face higher cost pressures, profit has always been micro-protection "if color TV production costs 2,000 yuan, the next product line after the promotion of the overall product, the sales chain will be Accounted for more than 50% of the price space, even up to 70%, including 10% of the terminal sales expense rate, after-sales service fee rate; 20% of logistics and warehousing distribution packaging; 2% -5% brand promotion expense rate etc.. Home appliance manufacturers in the third quarter of this year The cost has increased by 30%."

Industry economic observer Liang Zhenpeng pointed out: "At present, for home appliance companies, the space for fare increase is mainly in taxes, fees, logistics, brand promotion, and so on. Generally, the gross profit of home appliance manufacturers is between 20% and 30%, so it is enough to guarantee home appliances. The company has ample room for profit and maintains normal production promotion."

"A powerful way to solve high costs can be through strengthening online sales. At present, home appliance manufacturers really have less sales to open online, and high profits are closely related to corporate cost management capabilities. At present, several major home appliances giants still have strong management capabilities. The high revenue does not mean that the net profit is also high, and the management ability of small and medium-sized brands needs to be improved, said home appliance analysts.

Xu Dongsheng, secretary-general of the Household Electrical Appliances Association, told the reporter: “From the point of comprehensive gross profit of home appliance companies, the overall household appliance industry is still at a low profit. The household appliance industry is relatively competitive and there is currently no obvious profitable industry.”

The high gross margins of small household appliances such as vacuum cleaners are under overcapacity and the price of products is surging. The growth of the white power market is slow, and profit margins have been compressed. “Good times are not always in” Once the gross profit margin was once as high as 50% in the area of ​​small household appliances, after the rapid expansion of the market, it eventually became dull.

With Aucma, ASD, Jiuyang shares, Vantage shares and a number of household electrical appliance companies have entered the field of small household appliances and home appliances giant diversification, small appliances competition is fierce and hot. In recent years, the gross profit margin of some small home appliances has even been lower than that of white goods such as refrigerators and air conditioners. However, in view of the entire home appliance industry, there are still small profits and "pure lands."

Industry economic observer Liang Zhenpeng pointed out: “The gross margin of the household electrical appliance industry is currently high. Brand premium capacity is maintained by companies with gross profit margins generally ranging from 20% to 30%. Drum washing machines and other subdivided areas are relatively special. The current gross profit is 30%-50%. Even higher, however, the industry will still enter a new round of reshuffling or recapitalization. With the increase in barriers to entry and the increase in brand concentration, the industry with a product with a gross profit margin below 10% will have a long-term loss or even a loss. "death"."

It is understood that in the current home appliance industry, the higher gross profit is none other than vacuum cleaners, humidifiers and other small household electrical appliances, as well as range hoods, stoves and other kitchen and bathroom products, the gross profit margin of the two is about 50%; air conditioning, refrigerators and The profits of white goods such as washing machines are still comfortable. The gross profit margin of refrigerators and washing machines is about 30%, and air-conditioning is about 20%. Malay color TV in household appliances is low, generally less than 10%.

Baidian again raised the banner of low prices by the energy-saving subsidy policy stimulus, home appliance revenue and profit growth improved in the second half. In the absence of strong macroeconomic recovery at home and abroad, the bulk of raw materials related to home appliances has been declining, which has increased the profitability of home appliances.

In the second half of this year, with the overall pick-up in the home appliance industry, the industry's main business grew by 3.84% in the third quarter after two consecutive quarters of negative growth. In terms of subdivision, the growth rate of black battery and kitchen power is good, and Baiyin's main business is positive for the first time in nearly a year, which promotes the overall growth rate of the industry. Some home appliance companies in the industry started to pick up low-cost banner again and they wanted to open up the market.

“In the current slowdown and shrinkage of the overall growth of the home appliance industry, the low price strategy is not desirable. The overall quality of the home appliance industry in China is low, the product reliability management level is low, and the product repair rate is high. There are many methods in the market, such as making some construction-type changes in the quality and appearance of the craft, etc., will easily obtain a good market reputation, low-cost strategy is not an ideal and wise choice.The current market share of monopoly appliances giants success The reason depends largely on stronger quality craftsmanship and higher brand credibility." Liang Zhenpeng said.