What is the logic of Hisense’s counter-cyclical expansion in the process of evolution?

[Secret of the House]Drucker, the father of modern management, once said: “The greatest danger in turbulent times is not uncertainty, but continuing to act according to yesterday's logic.”

Nowadays, the cyclical adjustment of the home appliance industry has entered the deep water zone, and Hisense Home Appliances’ performance has proved thatIt has been using evolutionary thinking and gait to proactively respond to the external environment that is accelerating change, and drive the continuous burst of innovation vitality.

Recently, Hisense Home Appliances released its financial report showing that the company achieved revenue of 57 billion yuan in the first three quarters, a year-on-year increase of 13.9%, and achieved net profit attributable to the parent company of 1.07 billion yuan, a year-on-year increase of 15.5%. Among them, the net profit attributable to the parent company in the third quarter was 450 million yuan, a significant year-on-year increase of 44.6%. Both key indicators of revenue and profit exceeded market expectations.

Why is Hisense Home Appliances not afraid of cycles and growing upward?

　　Behind this, Hisense closely follows changes in property market policies, supply and demand relationships, and consumption concepts, and iterates itself with customer needs as the center, allowing Hisense to break the mold.

Competition intensifies and the home appliance industry enters a new stage

The overall size of the home appliance market is shrinking year by year, and it is an indisputable fact that it has now shifted to stock competition. At the same time, according to data from the National Bureau of Statistics, the national commercial housing sales area from January to October 2023 was 925.7854 million square meters, a year-on-year decrease of 7.8%, and new construction started The area was 791.766 million square meters, a year-on-year decrease of 23.2%.All signs mean that the extensive development of home appliance companies that relied on price and scale in the past no longer works.

At the same time, with the increase in the proportion of finely decorated residences and the acceleration of consumption upgrades, a new phenomenon has emerged in the home appliance industry, that is, mid- to high-end home appliances continue to increase in volume. According to the “China Home Appliances Market Report” released by the China Electronic Information Industry Development Research Institute, consumption upgrades and activation of the high-end market have become an important engine for pulling my country's home appliance market out of the trough quickly. Behind this, the rising demand of elite groups and the general trend of home appliance scenes are all important motivations. This means that high-endization has become a definite development trend in the home appliance industry.

With such changes, many subtle but significant changes have also surfaced. The most obvious one is consumers' attitude towards purchasing home appliances. Compared with “practical” in the past, today's consumers pay more attention to “good use”. In their view, home appliances are not only products that meet specific needs, but also have added emotions such as beauty, pleasure, warmth, and warmth. factor.To put it simply, today's consumers pay more attention to the quality and experience of home appliances, and they also give their concepts increasingly rich and three-dimensional connotations.

In this regard, Zhaimi believes that this is one of the core reasons why consumers are currently less enthusiastic about single-category home appliance products.Therefore, home appliance companies need to actively respond to such changes and carry out self-iteration with customers as the center.In fact, the exploration of high-end products by home appliance companies has been ongoing. For example, Hisense has long begun to invest resources in research on product intelligence and high-end products. Taking the TV category as an example, Hisense began to promote ULED more than ten years ago. The two technical routes of display and laser display accelerate the research and development and product promotion of high-end technology.

The high-end market is increasing in volume, and the brand is locking in the development line

In the process of high-endization of the home appliance industry, Zhai Mi found that the concept of packaged home appliances has begun to be mentioned by more home appliance manufacturers. Almost all mainstream home appliance manufacturers have launched marketing campaigns for packaged home appliances and launched a series of mid-to-high-end products. Many brands have even established separate brands for them, such as Casarte, COLMO, etc.

The emergence of set products is undeniable, unifying the design styles of different home appliances. Consumers can buy a complete set of electrical appliances that are good enough without making a list or repeatedly selecting. Compared with the previous single-category purchases, consumers can buy a complete set of appliances that are good-looking enough. Peace of mind. Consumers also have a high degree of recognition for set home appliances. According to the “2022 China Set Home Appliances Research Report” released by Aowei Cloud Network, more than 90% of the users participating in the survey expressed “high interest in purchasing set home appliances” ”, among which the high-end people are particularly willing. In addition, the report also pointed out that the current domestic home appliance purchase market capacity is as high as 153.8 billion yuan, and is expected to reach 176 billion yuan in 2023.

　　For this reason, in order to better promote the high-end process and meet user needs,Hisense has also launched the brilliant brand, a full set of high-end smart home appliances based on full categories, all scenarios, and full intelligent interconnection. This series of products is highly unified from appearance design to smart experience, satisfying users' requirements for high-end home appliances in terms of beauty and practicality. , intelligence and other aspects of pursuit.

　　The emergence of Hisense not only makes Hisense home appliances no longer a single entity, but also makes them a more complete whole through new product DNA, design language, etc., and this approach is in the competition of home appliances that are gradually increasing in dimension. In the market, Hisense has also achieved remarkable results. According to Hisense’s 2023 financial report, Hisense’s brilliant high-end series undertakes the company’s smart home strategy.Sales in the first half of the year increased by 310% year-on-year, and have reached a total of 250,000+ households. This also means that Hisense is gradually moving to a new highland of “one-stop high-end home appliance service brand”.

Hisense’s dazzling differentiated strength locks in the growth of its series

In fact, with the emergence of high-end consumption trends in the home appliance industry, Casarte and COLMO took the lead in taking the initiative in the market by virtue of their first-mover advantage. How did Hisense Cuichan manage to be the last to arrive and gradually become a leading brand in the series of products? The third pole? Essentially,Against the background of profound changes in the home appliance industry, channel restructuring, and changes in user needs, Hisense is still iterating itself with user needs as the center.

Specifically, we can start from two aspects.The first is the differentiation of product capabilities formed by technological capabilities.For example, the Cuican refrigerator has AI vacuum 3.0 ice temperature technology, which can easily ensure the original freshness and taste of food; the Cuican washing machine can realize ion ironing, steaming and washing, and the steam penetrates deep into the clothing fibers, which not only protects the clothing material from damage, but also Remove odors faster; the brilliant air conditioner focuses on the fresh air function, helping users provide healthier air while heating and cooling through greater fresh air volume; Hisense, as the picture quality king in the color TV industry, the brilliant flat-panel TVs are all based on ULED X As a display technology platform, laser TVs are all equipped with self-developed LPU digital laser engines, further raising the limits of image quality and user viewing experience…

Based on Hisense's accumulated R&D capabilities in the home appliance industry, Hisense's products have industry-leading key features. With these advantageous features, Hisense has formed a greater differentiation from other brands' products.

　Secondly, the unique industrial design.At that time, industrial design was undoubtedly a compulsory subject for every type of home appliances, and it was also one of the keys to impress consumers. What’s more, it was also known as a symbol for users to distinguish brands, so it was also regarded as a driver of brand growth. pole.

Hisense's brilliant series of products, from kitchen cooking to living room entertainment, from bedroom resting to bathroom washing, all infuse Chinese art and cultural genes into the design philosophy, achieving the coexistence of the beauty of traditional ancient charm and modern exquisite temperament. For example, the Xinghan light-sensitive panel of the bright refrigerator, the poetic indigo panel of the washing machine, the laser TV with a light and thin screen that is not attached to the wall…

It is precisely based on these two points that Hisense Home Appliances, in the context of a volatile market environment,Following the starting point of users' demands for ease of use and “differentiation and personalization”, we will explore new breakthroughs and find new positioning, dig deep into the “moat” through unique industrial design and technical capabilities, and draw a clear picture for ourselves through Hisense's brilliant series of products. A sustainable development path with length, depth and breadth.

Written at the end: In “Alice Through the Looking Glass”, the Red Queen said to Alice: “In this country, you have to keep running to stay in place.” When applied to the business field, this sentence is actually the same Be applicable. Only by keeping pace with the times and improving strategic strategies and improving core competitiveness can enterprises withstand waves of change.

This is the case for Hisense. It has a deep insight and understanding of the changing needs of customers, creates products that respond to the times, and uses its own advantages to optimize innovative products to provide users with products that better meet their needs. This also makes Hisense shine in the home appliance industry. Accumulating word-of-mouth, trust and reputation will invisibly precipitate a valuable wealth, which will then be transformed into sustainable power, helping Bright to go further, higher and longer.

magicCubeFunc.write_ad(“dingcai_top_0”);