Kitchen appliances cross-border dual-brand to seize the market

Some time ago, Vantage Co., Ltd. announced that its acquisition of Black & Decker Kitchen has been approved by the China Securities Regulatory Commission and will spend 380 million yuan in the form of cash plus shares to acquire 100% equity in Black & Decker kitchens. In the future, it will vigorously expand kitchen electric power with a dual-brand strategy. market. It is understood that Biohit and Vantage are the kitchen electric companies developed by Zhongshan and are mainly engaged in the production and sales of kitchen appliances, such as gas cookers, range hoods, gas water heaters, electric water heaters, sterilizers and ovens. The data shows that in 2011, the sales scale of Vantage shares was approximately 2.038 billion yuan, and the sales volume of Black & Decker kitchens during the same period was 714 million yuan. Based on this calculation, the company's sales scale can be increased by approximately 35% after the acquisition is completed.

Liu Wei, general manager of Vantage Sales Headquarters, told reporters that Black & Decker is mainly targeting the 3rd and 4th level markets, complementing the Vantage brand, which is mainly for the primary and secondary markets. In fact, with the fierce competition in the primary and secondary markets, Vantage has done a lot of work in radiating the network to the tertiary and tertiary markets in recent years. The township and village franchise plan for deep-growing channels that was released in 2011 passed new construction and The original distribution outlets were reorganized, and then Vantage covered 2,500 townships across the country. So far, Vantage has had nearly 4,200 township outlets. According to Liu Wei, the next year plans to “eliminate the illiteracy” for effective towns in the central region. Increase 4000 township outlets.

Dual-brand strategy to seize the market

The implementation of the dual-brand strategy in the kitchen and electric appliance industry is not just Vantage. Too early in 2008 launched a professional integrated kitchen brand "Bai Chu", specializing in integrated kitchen research, design, production and sales. At present, Fangtai's integrated kitchen business has spread over more than 100 large and medium-sized cities throughout the country and has thousands of stores nationwide. As for Fangtai brand, according to the data released by Fangtai Kitchenware, the overall performance of the company last year achieved an increase of more than 20%, with 56 national sales agencies and about 1,000 franchised stores.

Boss also launched a "famous" brand that differentiated itself from the "boss" brand for the low-end market last year and achieved a good market response. According to the three quarterly reports released by the owner's electrical appliance, the “famous” revenue growth in the third quarter was about 100%. Not only that, the owner of electrical appliances also through the formation of a joint venture with the Spanish Fagor Group earlier this year to introduce the French top kitchen electric brand "Di Ze". "Dai Ze" products are produced overseas and sold by joint ventures. Currently, they have opened image stores in Xintiandi, Shanghai. As a result, the boss electronics formed full coverage of the market, and the multi-brand strategy helped boost its market share steadily.

At present, the kitchen electricity market is presenting two trends. First, the transformation of high-end, consumer demand for kitchen products is changing from subsistence to energy-saving, environmental protection, health, intelligence and other quality changes. China Yikang's market sales data for January-November announced that sales of kitchen appliances with hoods, stoves, and sterilizers as the main components fell by 3.68% year-on-year, while sales increased by 3.02% year-on-year, indicating that the market is shifting its focus to high-end products. On the other hand, compared to the slowdown in demand in the first and second tier markets, the accelerating process of urbanization and the improvement of people’s living standards, the demand for kitchen appliances in the tertiary and quartile markets has increased and more market dynamism has emerged.

Implementing a dual-brand or even multi-brand strategy for different markets will help companies expand more market space. At the same time, the market concentration of kitchen appliances is very low, and there is huge room for improvement in the future. With the increase of leading brands and channel advantages, the industry will gradually complete its integration.

Kitchen appliance companies cross-border development

While Vantage started to implement a dual-brand strategy, Wanjiale, which is also a Guangdong kitchen and electric company, is also strengthening its chef's electric strategy. Recently, Wanjiale kitchen technology industrial park was laid in Yingde, which is the main industrial base for developing kitchen products in Wanjiale. The company's business is positioned to provide customers with smart kitchen system solutions. The main products are household cabinets, commercial cabinets and kitchen appliances. The smart cabinet project launched in the first phase will start construction in the near future and will be put into production in November 2013.

Yu Shaoyan, general manager of Wanjiale Gas Appliance Co., Ltd., said that after the completion of the project, independent research and development and independent production will greatly enhance the core competitiveness of Macro's in the cabinet market, “combining the advantages of Macro Electric in kitchen appliances and small household appliances to create MACRO's professional, lean kitchen."

However, MACRO also transcends other fields in addition to its main business. Last week, Macross announced that it would spend 100 million yuan and major shareholder Guangzhou Sanxin Industrial Co., Ltd. jointly initiated the establishment of Tiancheng Life Insurance Co., Ltd. Tiancheng Life Insurance has a registered capital of 500 million yuan, and Fanhua Insurance is also one of the major shareholders. It is expected that it will start making profits in the fifth year after its establishment. Macross said in the announcement that this is a long-term strategic investment that can provide new sources of profits for the company's future development, increase returns to shareholders, and help the company's long-term development. In addition, MACRO also participates in real estate project companies.