The teachers of Chinese washing machine manufacturers are all multinational companies, such as Ariston and Liebherr back then. The technology and production lines came to China along with the settlement of foreign masters. However, foreign masters lost more than half of the competition in the first round of washing machine market competition. What is the reason?
The first is the lack of technical input for the Chinese market. Foreign brands do not lack technology, what they lack is an understanding of the Chinese market. The vast majority of foreign brands have domestic production bases, but have not established their R&D centers in China, so they will naturally not take the initiative to launch products that are particularly suitable for the individual needs of Chinese people. The first factor that Chinese consumers consider when buying washing machines is price (accounting for 30%), followed by popularity (accounting for 23%) and quality (accounting for 20%).
The second reason is that the management model is not localized. This can be seen from the failure of the Whirlpool joint venture with Narcissus and Snowflake, and the defeat of Maytag Rongshida. China is still a developing country, eager for advanced ideas, but there is also a process of digestion. Since the beginning of 2003, foreign brands have renewed their efforts. They have chosen a good time to attack --- domestic brands have been dragged down by years of price wars, blindly pursuing volume expansion, and facing market failures due to the concentration of product costs. The offensive methods of foreign brands have become very Chinese, and they have played the price show proficiently.
Price is just an entry point, and there must be other ways to maintain or expand market share for a long time. The methods commonly adopted by foreign brands are to shorten the product life cycle and increase the value of single products and the profit of new products. They have changed the order of product launches in the global market and further shortened the time gap between products in China and the European and American markets. After that, multinational companies implemented "globalization + localization" research and development at the right time, not only to make products more suitable for the needs of local people, but also to enable foreign brands to continue to maintain their leading edge in technology. After Panasonic's R&D center moved to Hangzhou, the annual elimination rate of its products has increased from 50% in the past to 90% in 2004, and it has achieved simultaneous global listing.
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