Chinese home appliance industry: brand initially for industry mergers and acquis
TCL Group Chairman Li Dongsheng had a famous saying: "big companies are not necessarily strong, but not certainly not strong." For many Chinese home appliance enterprises, not M & grow, die in M & A, has been the fact that language that is not a sensational show.
Kelon 2001 Greencool acquisition can be regarded as China's home appliance industry has experienced capacity expansion, price war, after extensive development phase into a new round of mergers and acquisitions wave of the Foundation work. To 2005 when the domestic surge of M & A wave subsides and the dust has settled along the new brand structure.
Research report prior to 2005, China's home appliance industry will be only two to three integrated brand in the open market in China and Panasonic, Sony, Philips and other world-class home appliances brand competition. And to TCL, Greencool, beauty, Sweet is a strong representative of the rise of the forces, are all made clear China's household electrical appliance enterprises from the original stage of world manufacturing power, access to the world stage of brand building.
Statistics show that China's M & A volume to grow 70% a year, has become Asia's third-largest M & A market. The concentration of China's home appliance industry upgrading, it is also the last century from the mid-90s brought the two acquisitions wave.
Overview of the development of home appliance industry is not difficult to find, wave concentrated in the first round of mergers and acquisitions
TV
Manufacturers of similar products between the acquisition, then expand to other product categories of mergers and acquisitions. The round of M & A wave occurs when the home appliance industry in China is in the extensive stage of development.
Data show that in 1995 the beginning of the first round of mergers and acquisitions in the domestic home appliance brands have more than 200,
Haier
Group size of the market was only 31.7 billion; the end of 2000, the end of the first round of M & A wave left more than 20 domestic brands Haier time to reach 40.6 billion yuan market scale.
In rapid economic development, high-tech applications in the appliance industry is also rapidly developing, which will inevitably lead to the restructuring of household appliances. Some appliance companies after the IPO market, operating at a strategic adjustment of negligence or need the help of M & A to adjust the property rights and industrial structure, industry, the second a great space for optimal allocation of resources.
Since 2001, China's home appliance industry, entered the second acquisition period. This acquisition is a characteristic of great companies have strong capital, the rapid rise, a time Greencool acquired Kelon, Meiling, TCL acquired Leroy E, the U.S. acquisition Hualing growing incidence of large mergers and acquisitions.
Five series highlights the competitive landscape
Clearly, TCL, Greencool, Midea Group, Sweet dominated the resources of a large integrated industry, which again stimulated the people's nerves. The most immediate result of this acquisition result is a high concentration of home appliances brand resources, industry structure to sudden change.
Not difficult to find, in 2004, the domestic appliance industry, the competitive landscape highlighting the five major systems: TCL Department of Greencool Department, the United States the Department of Sweet system, Haier Group, and resources are focused on quickly to these giants.
To Greencool, for example, owns Kelon, Yung-Sheng, Compal, Meiling, and other famous brands, the last year and then by Kelon purchase Zhongshan Greencool power, cut into
Washing machine
Industry; the United States has always been quite cautious group, but the acquisition of Maytag? Rongshida and Hualing Electric shares, respectively, the two former rivals sat on the board of the top spot; TCL TV in the Lok Wah brand into the arms, it begins to integrate through a series of joint ventures white resources; and Sweet to buy Changling zero refrigerator and liabilities of the business into the refrigerator manufacturing industries; to zero after the buy the same Sweet Little Duck Group, washing machine business. Sweet Little Swan tried to brand as the core, for vertical development, the formation of covering high, medium and low market a complete industrial chain, building design from microelectronics to the full product line of home appliance products, creating "Sweet" Kingdom of .
Insiders pointed out that the pattern of China's home appliance industry is slowly replica of the last century, Japan's development road of 70 Chinese companies, "Matsushita strategy" Visible.
Profit management profit variable size
With China's accession to WTO, the increasing integration into the world economy, China's economy is in a transition period of economic globalization, the emerging market environment in the face of strong international competition, China's household electrical appliance enterprises in adapting to market economy, long-term stability management, rigorous financial management, long-term R & D, product upgrading, the growth in other aspects less than ideal. Especially labor-intensive household appliances industry, the characteristics of M & A as best reflecting their market efficiency and dynamic part of the most innovative.
Data showed that in the past 8 years, the Chinese household electrical appliance enterprises operating expenses increased faster than the growth rate of turnover, that is, appliances are the high profit growth in the cost of inputs. Operational phase in a single brand like this, how many brands the brand after merger integration, reshape and form a multi-brand, obviously can not be merely the size of competitive models in the past. How to play its brand synergies and optimize the entire supply chain management, variable-scale profit model for the management of profit model, this pattern has been re-biggest home appliance brand issues. Once the realization of this change, industrial transformation of China's household electrical appliance enterprises will not simply stay on the scale of expansion.
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