Why is there no "Dyson" in China's household appliance industry?

2021-12-02

Talking about "high-quality" household appliances, Dyson is an inseparable topic. From vacuum cleaners to hair dryers and curling sticks, to leafless fans and desk lamps, almost every product is popular. Dyson is known as the apple version of the household appliance version of the awesome price, experience, design, and black technology. Despite the dispute over "IQ tax", the above label outlines the general outline of a "tall" brand, which also partly explains why this British brand is so popular in the Chinese market. Dyson's popularity makes the outside world see that the growth of a brand is inseparable from favorable weather, place and people. It also makes Chinese consumers ask themselves: as the world's largest home appliance manufacturing and consumer market, why doesn't China have a "Dyson"? Product logic behind Dyson's "expensive" Dyson comes from England, which is rich in gentlemen. The British home appliance design and manufacturing company was established in 1993 and officially entered the Chinese market in 2012. Vacuum cleaners, hair dryers, cell phones, hair styling machines and other products sell well in more than 60 countries and regions around the world. Dyson's first impression to the outside world is "expensive", and the price is almost 10 times that of similar products. The reporter saw on the home appliance category related page of Jingdong Mall that the price of a Dyson hair dryer is 3190 yuan, more than 30 times more expensive than Xiaomi hair dryer; Air purification warm fan 6490 yuan; A handheld wireless vacuum cleaner is 5490 yuan, and there is no stock. The number of reservations exceeds 5000. Behind the "expensive", Dyson has its own product logic - stick to the high-end and target the middle-class and above consumer groups. There are two main meanings for enterprises to build high-end brands. One is to obtain an independent high-end market in the overall market, and high gross profit will bring broader profit space; Second, high-end brands can radiate the middle and low-end product lines and enhance the competitiveness of the middle and low-end product lines through technology sharing and brand endorsement. Obviously, what Dyson pursues belongs to the first kind. At the beginning of entering the Chinese market, Dyson selected Jiecheng group, which has agency experience of many well-known high-end international brands, as the agent. The latter helps Dyson establish sales points in the most high-end department stores in China, targeting the middle class, so as to maintain the consistent high-end image of Dyson brand. In addition to being much higher than the pricing of similar products, Dyson's most intuitive impression to Chinese consumers is high product quality, leading technology, fashionable process design and unique brand concept. Home appliance industry analyst Liu buchen told China Electronics News that it is not easy to achieve the above aspects at the same time. On the one hand, it needs leading technology and innovation ability, on the other hand, it needs strict quality control as guarantee, and on the other hand, it needs enterprises to persevere in shaping brand image, all of which have to pay a large time cost. Technology is the core to support the high premium of Dyson brand. From the development process of global household appliance brands, leading technology is the key factor in the formation of high-end brands. Dyson is the "ancestor" of black technology. In the early 1980s, James Dyson, founder of Dyson, developed the world's first dust-free bag vacuum cleaner with double air rotation system, breaking the market monopoly of Hoover Vacuum cleaner for 80 years. As early as 1999, Dyson invested more than 350 million pounds in digital motor R & D, and successively applied for more than 1000 related patent technologies. In 2004, Dyson's first generation V1 digital motor was born. The speed of 1666 revolutions per second is more than three times faster than that of traditional motor. In addition to vacuum cleaner products, today's Dyson hair dryers, hairdressers and other products have used V9 digital motor technology. Freedom in the realm of science and technology often comes from the investment of real gold and silver. Dyson will spend 10% ~ 15% of its sales revenue on R & D every year, which is a high proportion in the home appliance industry. According to the data, in 2020, the R & D investment of China's three comprehensive household appliance enterprises accounted for between 3% and 4% of the total revenue, and the R & D investment of home service robot manufacturer kovos was 4.67%. When applying for IPO in 2017, domestic vacuum cleaner brand puppy electric disclosed that from 2015 to 2017, the proportion of R & D investment in total revenue was 1.96%, 1.53% and 1.51% respectively. Under the strategy of high-intensity investment in R & D, Dyson has more than 3000 patents and more than 500 inventions. Digital motor technology, one of its core technologies, has been difficult to be surpassed by peers, and some products equipped with core technologies have attracted other competitors to follow suit. China does not lack fertile soil for breeding Dyson The importance of the Chinese market to Dyson is self-evident. Dyson officially entered the Chinese market in 2012. In 2016, its sales in the Chinese market was 5.7 billion yuan, with a revenue increase of 244%. Over the same period, the revenue of China's leading household appliance enterprises increased by more than 30%. Dyson has reached a level comparable to the American market in only four years in China. In fact, Dyson's entry into the Chinese market is not plain sailing. Dyson built factories in Nanjing and Beijing in 2006 and 2008 to test the water dry mobile phone products, and the effect was not good; After that, he adopted a roundabout strategy and entered into the Chinese market of Hongkong by entering into China's partnership with JJC group, and then formally entered the Chinese mainland market in 2012. Dyson's "sudden rise" is closely related to the change of China's home appliance industry environment and the rapid growth of China's economy. On the one hand, the policy of "home appliances to the countryside" started in 2008 has been extended to the whole country. In recent years, home appliances have been popularized rapidly, which has laid a foundation for upgrading. On the other hand, the per capita disposable income of Chinese residents has been increasing, and consumption has been escalating. At this stage, the home appliance industry has become a red sea of competition. Chinese manufacturers continue to make efforts with the advantages of cost performance and manufacturing capacity. The traditional international brands in Europe, America and Japan are shrinking step by step, leaving room for the development of high-end brands. In addition, Chinese consumers' pursuit of new technology and high-quality design and their preference for "subversive" products are in line with Dyson's innovation and investment philosophy, and have also achieved Dyson's performance in the Chinese market. James Dyson once said in an interview that the Chinese market is the top priority when developing new technologies. Wei Jun, founder and general manager of Zhiyu consulting, who has been engaged in household appliance Market Research for many years, pointed out to the reporter of China Electronics News that the transformation direction of household appliance enterprises in the future is high-end. The standardization of the home appliance industry is very high. The competition pattern of China's home appliance market has been basically finalized, and the remaining opportunities come from subdivided fields, of which the cake in the high-end market is relatively the largest. It is precisely because Dyson insists on deep cultivation of high-end market segments that Dyson has achieved today's small and beautiful. Wei Jun said that China's home appliance industry has experienced three development stages. The first two stages have solved the problems of "yes or no" and "good or bad". In the third stage of the transformation from "incremental drive" to "stock replacement", the key is "precision or not". The key word behind stock replacement is consumption upgrading. According to the GfK Consumer Research Report in 2021, Chinese consumers are less sensitive to home appliance prices and are more willing to invest in products that can improve health, intelligence and other life experiences. According to the monitoring data of GfK zhongyikang, the retail sales of refrigerators above 10000 yuan and televisions above 65 inches in China's home appliance market will reach 35% and 30% respectively in 2021, and the latter will rise to more than 40% in 2022. At present, the sales of the most popular floor washing machine is expected to increase by more than 800% this year. "For enterprises, whether they can build high-end brands used to be 'how well they live', but now it has become 'whether they can live'." Ma Jia, research director of GfK zhongyikang household appliances, told China Electronics News. In recent years, Chinese household electrical appliance enterprises have made significant progress in products and technology, but the positioning of most brands is still lower than that of the United States, Europe, Japan and South Korea. "This situation must be completely changed in the next few years. Chinese household appliances must complete the transformation to high-end like the Japanese and Korean brands in those years," Liu buchen said. Today's Chinese market does not lack fertile soil for cultivating high-end household appliance brands. How far is it from Dyson According to Wang Weiqiang, deputy general manager of Pan Borui consulting, building a high-end brand should at least make efforts in the four dimensions of "high positioning, good products, thick capital and strong endurance". High positioning means that we should clearly explain our brand positioning to consumers in the process of brand creation and popularization; Good products, that is, the technology, quality and experience of products should match the price and positioning; Thick capital means that the marketing, channels, products and services of high-end brands are inseparable from deep capital support; Strong endurance means that the building of high-end brands requires persistence and focus. In other words, high-end brand building is not achieved overnight. We need to make persistent efforts for this vision. There are many cases in Dyson's development history showing the spirit of "chronism". Before inventing the world's first dust-free bag vacuum cleaner, Dyson missed 5127 experimental models; Before launching the corrale hairdresser, Dyson made a decision to enter the field of hair science eight years in advance. Haier's Casati is the most successful high-end home appliance brand in China. It has been cultivated for more than ten years before it matures. Both chronism and choosing the right track are indispensable. On this basis, enterprises or brands should make unique differentiation. Dyson is to give full play to its core technology in the field of motor and extend it to other products. Tianke, a popular brand of household appliances sold on e-commerce platforms, focuses on young people, focuses on intelligence, and finds new growth space in the stock market. In addition, for high-end brands, R & D and marketing are like left and right hands. Dyson's success in the Chinese market is also a marketing victory - through the growing social platform and precision marketing, it creates an image of high and cold technology, infiltrates the target population, and forms a circle to let consumers pay for their lifestyle. In this regard, Wei Jun's analysis emphasizes that high-end brand consumer groups have high requirements for products, but if the products are not done well, the more powerful the marketing action is, the faster the brand collapses. However, when the product reaches a certain scale, it needs to quickly reach the target consumers through brand premium. There is no shortage of manufacturing capacity in China, but high-end brands always seem to be "out of breath", and the problem lies in marketing capacity. Enterprises blindly stick to products and are reluctant to give up brand investment. They may not wait for the day when the brand erupts. Who can become China's "Dyson" Domestic enterprises are making breakthroughs in building high-end brands. When it comes to "who can become Dyson in China", Casati and Tianke, two high-end domestic brands, have become popular "potential stocks". In 2006, Haier Group began to lay out high-end household appliances and launched Casati brand. From the "French door-to-door refrigerator" to the "Italian drawer" refrigerator, and then to the world's first dual barrel partition washing machine, Casati has opened up a high-end track of business alienation with the help of the ice washing technology advantages of its parent brand Haier. According to the data, Casati's revenue grew by 57% in the first three quarters of this year, and the high-end market share of ice air washing products remained absolutely ahead. Casati's success logic is not complex, that is, technical foundation, forward-looking layout and long-term brand endurance. Casati has experienced 15 years of development to usher in the harvest period. Other Chinese household appliance giants have also launched high terminal brands in the same period, but they have not achieved remarkable results. The rise of Casati is inseparable from the support of Haier Group, and the popularity of domestic brand Tianke, which has been established for more than three years, confirms an Internet Language - "defeat magic with magic". Similar to Casati, there is also a "tree" - kovos behind the Tianke benchmarking Dyson. Relying on the research of the latter for more than 20 years

Edit:Li Ling    Responsible editor:Chen Jie

Source:CENA

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