6 insight judgments

Deep exploration of low-voltage electrical appliance industry development essence

To formulate an accurate development strategy, enterprises must feel the pulse of the industry development and gain an accurate insight into the nature of the industry development.

Based on the in-depth study of the low-voltage electrical appliance industry, Osythe makes the following five core judgments:

Judgment 1:

Domestic and foreign brands are competing fiercely in the S1-S3 market

But there is a chance to break through by digging deep into niche areas

Strong foreign brands occupy the S1 market, and the price tends to drop. In the general product market of S3, Delisi is struggling with domestic brands through a price war. Brands that were originally in the S3 market frequently test the S2 market through product upgrades. For enterprises, only deep subdivision field, build competition moat, can jump out of the homogeneous competition.

Judgment 2:

The driving force for industry growth is shifting from channel distribution capabilities to service capabilities for industry solutions

The depth and breadth of distribution channels drove the industry’s last round of growth, creating Chint and Tianzheng. With the strengthening of industrial upgrading demand, universal products have been unable to meet the needs of customers. Driven by the upgrading of direct selling service capability, Liangxin has completed the industrial transformation quickly and successfully by providing customers with more comprehensive and in-depth industry solutions.

Judgment 3:

Domestic leading enterprises are essentially homogeneous competition

Product convergence, channel convergence, service convergence… The business development modes of domestic leading enterprises are merging with each other, which is essentially homogeneous competition. Enterprises need to find different value points in the process of convergence, so as to break through the situation of homogeneous competition.

Judgment 4:

Business is shifting from product/price driven to value driven

Direct selling: simple product needs to service response, product solutions, high quality, etc
Distribution: A shift from simple pricing policies to the uplifting role of brand power and the empowering role of business transformation
For enterprises, only by getting close to the channel/terminal and improving the solution capability, can they create more value for customers.

Judgment 5:

Matthew effect appeared, the special market ushered in the development

There are three reasons why the future low-voltage appliance market will focus on the specialized market:

New energy, smart grid, 5G, IDC and other emerging high-end manufacturing industries have higher requirements for product quality than traditional real estate and other fields.
The industry is concentrated towards the head, and the Matthew effect emerges. Downstream real estate, communication, photovoltaic and other industries gradually concentrated on the leading enterprises, upstream low-voltage electrical suppliers tend to supply the leading companies;
Mid – and low-end integration has intensified, and competition has been improved. For enterprises, building lighthouse benchmarking cases can effectively improve their industry status.

Judgment 6:

Enterprise development needs to find its own ecological niche

The niche of enterprises in the industry can be divided into three categories:

Industrial ecological builders: such as Huawei, Xiaomi, etc., can build a complete business closed loop;
Industrial ecology adherents: the vast majority of small and medium-sized enterprises, dependent on the existing ecology to carry out business;
Super ecological enterprise: Industry champions cooperate with various industry leaders, such as Ningde Times.

For low-voltage electrical enterprises, only by accurately finding their own position in the industry and making continuous efforts for it can they break the development dilemma.

03

How does low-voltage electrical enterprise go from 0 to 1

1, accurate positioning

Find the core advantages of the enterprise, brand differentiation positioning

Brand positioning is to establish a different from competitors, and in line with consumers’ mental cognition and needs of the image, the purpose is to occupy a powerful position in the hearts of consumers. Simply put, the differentiation of brand positioning is to be like a nail into the mind of consumers. For example, Wang Lao Ji can reduce the fire of herbal tea, Gree “air conditioning expert” cognition, Xiaomi in the low-end market of young and middle-aged good product mobile phone brand image.

In the process of brand positioning, it is necessary to consider three aspects: distinguishing competitors, meeting consumer needs and the advantages of the enterprise. In short, it is a way to want customers to feel, think and feel that the brand is different from its competitors.

For example, for low-voltage electrical appliances, customer needs of different segments of the industry are mainly stable product quality, consistent product performance, high cost performance, leading enterprises in the industry, successful cases, white list, good customer relationship, strong service ability, solution ability, research and development technology ability, convenient purchasing.

The enterprise needs to combine the needs of customers, consider the advantages of competitors and the enterprise itself, find the intersection points of the three, find the core advantages owned by the enterprise but cannot be copied by the competitors, enlarge them, and integrate them into the brand positioning.