Domestic washing machine giant competing to expand high-end products

This year is the first year of the 12th Five-Year Plan. Washing machine giants such as Midea, Haier and Little Swan are all busy expanding their production capacity. While expanding production capacity, the washing machine giants also carried out product structure adjustments. The expansion of high-end products has become the development trend of the entire industry. Some insiders believe that this will accelerate the disruption of the original market structure.

Domestic giants compete for high-end machines

In the field of washing machines, high-end models have always been dominated by foreign brands such as Panasonic, Whirlpool, LG, Sanyo, and Siemens, but the rise of brands such as Little Swan, Haier and Midea is disrupting the existing market structure. Since the launch of the drum popularity storm in March 2010, Midea's washing machines have entered more and more consumer households. The market share of drum washing machines has also increased significantly. At the same time of popularization, the United States also relied on its Little Swan to launch the "Connaught" drum washing machine, its washing and drying machine is priced at more than 6,000 yuan, comparable to many foreign brands.

Coincidentally. Haier, which started with white electricity, has also changed its marketing strategy in a timely manner. Xin Express reporter saw in the store, Haier has been the main Casa Di duplex washing machine priced as high as 14,000 yuan, is clearly designed specifically for high-end consumers.

According to statistics from the China Household Electrical Appliances Association, the share of drum washing machines, pulsator washing machines, and double barrel washing machines in 2010 was 18.5%, 45.5%, and 36% respectively. It is expected that the sum of the production ratio of drum washing machines and fully automatic washing machines will increase to 70% in 2015. Among them, the proportion of domestic high-end washing machines grew even more prominent.

High-end production capacity expansion

In recent years, high-end ice-washing retail sales have been steadily increasing. According to Suning's sales data last week, mid-to-high-end ice-washed products accounted for 80% of its overall ice-wash sales, among which high-end products such as door-opening refrigerators and drum washing machines over 4,000 yuan accounted for 30% of sales. Among them, in the field of high-end washing machines, thanks to manufacturers represented by Haier, Little Swan, etc., the proportion of high-end products has increased, and the share of domestic brands has increased significantly.

In April of this year, the washing machine expansion project of the Jingzhou Industrial Park in the United States officially broke ground. It is expected that after the completion of three years, the annual production capacity of the washing machine will reach 6 million units and sales revenue will reach 4 billion yuan. Wang Jinliang, Vice President of Refrigeration China Business Division of Midea, said that most of the new capacity of the US washing machines is high-end drum washing machines. “The same is true for the new production capacity of other companies in the industry, which is very favorable to the upgrade of the entire industry.”

According to report, in 2011, only Haier, Midea, and Little Swan will increase their drum washing capacity by 7.5 million sets and dryers by 1.5 million sets in 2014.