Analysis Report of China's Electrical Industry in 2007

First, the industry situation

As far as the current situation is concerned, the development situation of the whole industry is relatively optimistic. The annual market capacity of electrical products in China is more than 90%, which is brought about by the development of the real estate market. It is an industry closely linked with real estate. As far as industrial products are concerned, qualified electrician products have a long service life, low frequency of repeated purchases, low daily attention, and consumer behavior between sensibility and rationality. From a perceptual point of view, consumers buying switch sockets are often greatly influenced by product design and terminal promotion; from a rational point of view, consumers are more inclined to choose brands with high visibility to ensure quality.

Take the 70-year period of residential commercial housing formulated by the state as an example. Generally speaking, the average consumption is no more than three times. Therefore, the frequency of purchase is low, and consumers' loyalty to the brand is low. Due to low attention, the traditional brand promotion method cannot be used in the sales of products in this industry. For example, mass media and word-of-mouth communication are hard to bring about the long-term effects of brand building. Coupled with the multi-layered characteristics of the Chinese market arowana, often many electrician brands are short-lived, and they are not traced. The reason is not difficult to find that the industry's own personality characteristics determine that brand building cannot be based on fast-moving consumer goods or durable consumer goods. The rules of brand building go to work. Throughout the recent changes in the electrical industry, "Wulin" is in chaos, and many of them have introduced the fast-moving consumer goods marketing model into the electrical industry. The brand uses large advertising, sweeping the streets, and the dust is flying. The result is often exhausted. In the process of being firm and short, it crashed down or lingered.

At present, almost 100% of the famous domestic brands that started from the electrical industry have become diversified. Diversification involves small household appliances, smart, lamps, building materials, real estate, hotels and other fields. Among them, lamps and building materials with high degree of relationship are mostly It is the profit margin of the electrical industry that enables them to complete the original capital accumulation of the company in a faster time. However, because of the decentralization and complexity of marketing channels, they cannot be dominated in a short period of time. Major manufacturers have boldly attacked publicity, such as national inspection-free products, China's famous brand products, and China's well-known trademarks. The electrician companies began to impetuous towards diversification. Many companies become big and not strong after diversification. How to solve the bottleneck problem in these development strategies? In the electrician industry, the fact that a joke is similar to selling a LCD TV is not as good as selling a home improvement switch. Looking at the international market, many foreign electrician giants have nearly a hundred years of professional focus on business to achieve today's predators. Today, with the rapid development of real estate in China, foreign electric giants are eager to see the Chinese market, and our national electrician brand is weak in the domestic market. It is precisely in today's China that there are some industries that are tempted by tyranny, and they are always tempted to get involved in the top of the electrician brand. The foreign electric giants are highly specialized in the Chinese market. If Legrand uses the 1.69 billion funds to acquire TCL International Electric to register a real estate company to enter the real estate sector, then the strength in China's real estate sector can also be high, but they use The way is to buy a fast-growing company in the field of electrical engineering at a high price. Multinational brands that have passed the test of mature market economy may have more rationality than our national brands. With the maturity of China's market economy, the profit-seeking industry that looks like the blue ocean will disappear quickly, and then our national brand will be difficult. Get a place.

Second, the electrical industry industry brand operation market operation

There are two types of brands that cut into the electrical industry. One is that the original main business is similar or compatible with the electrician sales channels; the other is to completely rebuild the sales channels. Enterprises from one product area to another product area, although the market is full of great temptation, but also to the top of the company's high-level mental state.

1, heart floating and dry. Numerous cases show that the top executives of the company have entered the electrical industry to set a very ambitious goal. How much will be achieved in the first year and how much will increase in the second year. So under this goal and the corresponding profit temptation, do not hesitate to spend a lot of money, seeking a short, flat and fast way to occupy the city often overlooks the improvement and attention of product technology research and development and product manufacturing process, as well as the scientific and rationality of the market network layout, Even if you use the OEM directly to enter the market, you only want to find the goods in the city. But in fact, electrical products belong to low-spending frequency products. The average purchase time of a person in a person's life will not exceed three times. It depends entirely on the newly added market to drive the development of the industry. It is highly correlated with the fluctuations of the real estate industry, so the short board Market effects will be difficult to achieve sustained development.


2. Overestimate the influence of the brand. Since 2000, many well-known domestic brands have ranked among the top in the industry in their main business areas and enjoy high reputation. However, when cutting into the electrical industry, there is no detailed market positioning analysis, too high estimates of their brand influence, so the price of the product is set too high, and the corresponding supporting factors are greatly reduced, such as product technology, product image The market image, brand image, etc., lead to the product's competitive advantage is not obvious, and even behind the mainstream. In turn, it is difficult to attract investment, distribution is difficult, the marketing network is chaotic, and the strong reputation of the main business cannot be presented to the end users, which in turn has a negative impact on the original main business.
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