Author/Cherno
Source/bento finance (ID: daxiong fan)
From production suspension to recovery,
Author/Cherno
Source/bento finance (ID: daxiong fan)
From production suspension to recovery, under the epidemic situation, the biggest black swan in recent years, enterprises changed and adjusted their pace, which gave birth to new growth points.
On the afternoon of August 30th, Midea released its semi-annual report. The financial report shows that in the first half of the year, the operating income was 65.438+0397 billion yuan, the net profit was 65.438+03928 billion yuan, and the non-net profit was 65.438+035 billion yuan. Among them, the return on net assets is 65,438+03%, and the earnings per share is 2,065,438+0 yuan/share.
In the context of the overall decline of the industry, the data in Midea's semi-annual report can be considered to be stable. According to the data released by China Household Electrical Appliances Research Institute and National Household Electrical Appliances Industry Information Center, the domestic market retail scale of household electrical appliances industry in the first half of 2020 was 336.52 billion yuan, down 18.4% year-on-year. In the industry, there are many leading enterprises whose net profit dropped by more than 50% in the first half of the year.
As can be seen from the data in Midea's semi-annual report, e-commerce, high-end markets and overseas markets are becoming new growth directions.
Online channel transfer, product intelligence, industry-wide embrace of live broadcast, export rebound. In fact, these growth directions are also a new wrestling point for the home appliance industry to test its growth ability.
What has the United States done right, and can it maintain steady growth against the trend? What is the ability behind these new wrestling points? For other companies that are also trapped in the Black Swan incident and eager for new growth, can these capabilities be replicated and learned? Taking this opportunity, we take beauty as a slice and try to find out what the growth of beauty has done right, so that our performance can still grow steadily under the drastic changes.
The growth of e-commerce channels is just to embrace live broadcast?
Midea's semi-annual report in 2020 shows that in the first half of 2020, the sales scale of Midea's whole network exceeded 43 billion yuan, up by more than 30% year-on-year, with domestic sales accounting for 49%, ranking first in the whole network, and maintaining the position of JD.COM, Tmall, Suning.cn and other mainstream e-commerce platforms as the first category of household appliances industry for eight consecutive years. During the "6 18" period, the total sales of Midea's entire network exceeded 125 billion yuan, a year-on-year increase of over 50%.
According to the Report of China Household Appliances Market in the First Half of 2020 released by China Electronic Information Industry Development Research Institute, in the first half of 2020, the retail sales of household appliances in offline channels was 654.38+0777 billion yuan, down 29.3% year-on-year; The retail sales of online home appliances reached191300 million yuan, up 7.23% year-on-year, and the proportion of online channels in the total retail sales of home appliances reached 5 1.84%.
However, it is worth noting that while online channels account for more than offline channels, saturation and e-commerce traffic dividends gradually disappear, and online channels are no longer the innocent king. According to the Report of China Household Appliances Market in the First Half of 2020, online household appliances sales achieved single-digit growth for the first time in the first half of 2020, which was less than the average increase of physical goods (online retail sales) 14.37%.
So, how did Midea's growth in e-commerce channels come from?
According to incomplete statistics, in the first half of 2020, the number of live broadcasts in the field of home appliances reached one million, and the transaction amount reached 100 billion. Under the influence of the market environment, the improvement of enterprise live broadcast experience, and the increase of participation in home appliance live broadcast, the conversion rate of home appliance live broadcast increased significantly in the second quarter of the first half of the year, and the average output per field is expected to be four times that of the first quarter.
According to the data of Tmall 6 18 Taobao Live Innovation Report, among the categories with the highest penetration rate of Tmall 6 18 live broadcast this year, household appliances ranked second, and among the categories with the fastest transaction growth this year, household appliances ranked third.
The upgrade of the whole value chain behind the live broadcast has become a weapon for the growth of Midea in e-commerce channels.
As mentioned in the semi-annual report, the online market and e-commerce platform promote the deep cooperation project of the supply chain, take the improvement of information flow as the main line, and use data-driven and system-driven to realize scientific replenishment, automatic bill review, intelligent warehouse division and elimination of information breakpoints, and promote the efficiency optimization of logistics, capital flow and business flow, and finally realize the improvement of customer service experience and the efficiency of the overall supply chain.
In July this year, Bento Finance was invited to visit Midea, and Wu Haiquan, president of Midea China District, shared the reasons behind the growth of Midea's live broadcast.
Wu Haiquan said: "When the e-commerce platform first got up, we turned both online and offline into a' plate of goods' and opened up user data and marketing data. In essence, our back-end actually has a mechanism to cope with rapid changes, so when the form of live broadcast appears, as long as we find the form of front-end sub-scenes and find the cooperation of various scales, the scheduling of the back-end will be very simple. "
Subsequently, Wu Haiquan also elaborated the importance of back-end support with the case of "one plate of goods" practiced for many years. "As long as the front end is responsible for sales, you don't have to worry about not getting the goods, because the logistics distribution system at the back end is already in place. You don't have to worry about returning the goods, because as long as the user receives the goods and wants to return them anywhere on WeChat official account and 400 (Midea Customer Service Hotline), we will have feedback. "
In fact, from the incremental market to the stock competition, the channel and scale dividend gradually disappeared. How to meet the increasingly diverse needs of consumers is the primary problem to be solved by the marketing channel (new channel and new marketing) and the supply side (flexible manufacturing and automation). (Home appliances look for innovative enterprises and look forward to the research report on economic recovery) Guo Sheng Securities)
The changes in the front end can make consumers quickly perceive that the sales channel is only a part of the industrial chain. The coordination of inventory, logistics and other links can support the smooth and complete chain. In a sense, placing orders by consumers is only the beginning. How to make consumers receive goods quickly after placing orders, how to control warehouse inventory, how to cooperate with logistics distribution, and how to control data in factories? It is equally important to solve these problems.
In addition to a plate of goods, the production mode of T+3 is also the key.
The "T+3" model divides the user's order receiving, raw material stocking, factory production and delivery sales into four cycles (T), optimizes the manufacturing process through the advantages of the whole industrial chain, upgrades the manufacturing equipment and technology, further compresses the supply cycle through the linkage of production, supply and marketing, and shortens the time of each cycle from 7 days to 3 days or even shorter. And the directivity of this model is very clear-to solve the problem of inventory backlog.
Zhang Xiaoyi, vice president and CIO of Midea Group and president of the Internet of Things Division, emphasized the digital 2.0 to be promoted next when introducing Midea's digital transformation strategy. He said: "The most fundamental reason is that our entire business model has undergone profound changes, that is, our' T+3' model has been launched. After the former beauty was produced, it was distributed to consumers in the market layer by layer. The' T+3' model is to promote the operation of the entire R&D, production and sales link according to the market demand and the order of' T+3', so this is the most fundamental factor in the construction of Digital 2.0. "
"This year's live broadcast is hot, but the innovation of marketing model emerges one after another. It's no use chasing marketing hotspots blindly. We must also see what is behind the innovation of marketing model. " Wu Haiquan also said: "The live broadcast will also change and reconstruct a series of commercial chains such as inventory, logistics and distribution of home appliance enterprises, which requires the support of digital capabilities of enterprises."
E-commerce live broadcast not only tests the digital ability of enterprises, but also tests the adaptability of enterprises to new things. The promotion and upgrading of the whole value chain capability is an important ability to seize the wind, and it is also the core of the continuous growth of online business after the emergence of other channels or marketing methods in the future.
The rise of live broadcast with goods mode and product preference have * * *-the change of mainstream consumers determines the logic of the change of consumption preference.
In 20 17 years, the post-80 s and post-90 s population accounted for nearly 50%, accounting for the highest proportion. It can be inferred from this demographic situation that the main consumer has changed from the post-70s to the post-80s and post-90s, and the overall consumption age is younger and more energetic.
(20 17 90 has the highest proportion of population)
Under the background of younger consumers, the preference changes of the trend of the times are further reflected in the changes of product preferences, channels and communication methods and brand preferences.
And the innovative ideas of home appliances are also going in this direction. In recent years, the innovation of home appliances has continued two major ideas: the high-end route around intelligent networking and the personalized route around practicality and segmentation.
The Semi-annual Report of China Household Appliances Industry in 2020 mentioned that while offline consumption is increasing, low-level markets such as towns and villages are becoming the main battlefields. Quality household appliances are paid more and more attention by users in the low-level markets, and the consumption trend of intelligent high-end products is obvious.
Intelligence and high-end are another highlight of Midea's semi-annual report and another source of growth. The research report of Guo Sheng Securities shows that consumers are willing to pay a premium from quality to quality, face value and emotion.
The growth shown in Midea's semi-annual report just confirms this view. The semi-annual report shows that since its launch, COLMO has served nearly 40,000 elite families around the world, and some categories have outstanding market share in the high-end market and gradually become the industry benchmark. For example, the market share of household air conditioners (on-hook) with a unit price of more than 7,000 yuan is 18.8%, that of household air conditioners (cabinets) with a unit price of more than 20,000 yuan is 20.8%, and that of water purifiers with a unit price of more than 5,000 yuan is 6544.
The data shows that Midea's high-end intelligent AI home appliance brand Colmo &; Beverly, once again outstanding in the high-end washing machine market this year, has a market share of 6.5%, up 22% year-on-year.
In addition, the washing and drying suit of Midea's washing machine layout is very eye-catching this year. The total sales volume of washing and drying suits was 33,000 sets, the sales volume of Little Swan was18610.5 million sets, up by 13 1.6% year-on-year, and the sales volume of Midea was 78.96 million sets, up by 4 1.6% year-on-year.
As a national brand in the care industry, Little Swan has achieved an overall increase in online and offline share in the dryer category and has become the first domestic brand in the dryer category. With the decline in the share of offline foreign brands, Little Swan increased significantly, among which Little Swan dryer TH 100-H36WT occupied the top 5 in the market for five consecutive months.
According to the data of Aowei Cloud, the market share of international brand washing machines dropped from 48% in 2009 to 365,438+0% in 2065,438+09. The market share of international brand refrigerators dropped from 36% in 2009 to 24% in 20 19. In contrast, the market share of domestic brands has been greatly improved, and the overall phenomenon of foreign brands being replaced by domestic products is presented.
From sales channels, marketing models to products, efficiency is the core.
When the household appliance industry gradually enters the stage of stock competition, the traditional method of large-scale low-cost manufacturing has failed. Midea's response is to change from extensive management to efficient management. It is necessary to open up all links in the entire value chain of Midea through digital means, improve efficiency through digitalization, and reconstruct all links such as development, production and sales.
Midea starts with the word "efficiency" around the digital transformation of intelligent manufacturing and supply chain cloudization.
According to the research report of Guo Sheng Securities, intelligent manufacturing, including factory automation and manufacturing flexibility, has achieved a 26% increase in production capacity and a 39% decrease in employees. In addition, the product turnover cycle was shortened from 25 days to 9 days. In the aspect of supply chain cloudization, Midea has clouded the bidding, qualification examination, evaluation, production scheduling linkage, inventory sharing and logistics trajectory through the supply chain cloud, realizing plan pulling, quality and health, inventory transparency, logistics tracking and traceability of key components.
Sino-US trade frictions and geopolitical risks are increasing day by day. In this context, the growth and rise of overseas markets is beyond conventional cognition.
After the decline in the first quarter, overseas markets ushered in a strong rebound.
According to customs data, in the first half of 2020, China exported household appliances 187065438+ billion yuan (including fans, air conditioners, refrigerators, washing machines, vacuum cleaners, microwave ovens, etc. ), the year-on-year growth rate was 4.2%. Among them, in June, the foreign trade export of household appliances was 39.85 billion yuan, an increase of 3 1. 1%.
(China-US Light Industry Export Trade Index compiled by China Light Industry Information Center)
Midea's overseas market growth is also consistent with this.
The semi-annual report shows that Midea actively embraced the new marketing model, and overseas orders increased by 65,438+00% in the first half of the year. Continue to explore overseas channels and increase more than 1 1000 sales outlets.
It is understood that not only in China, but also in overseas markets, Midea is actively embracing new marketing models. According to the data, Midea launched a live broadcast in ASEAN for the first time this year, with 37 live broadcasts and sales of nearly $6,543.8 billion.
The semi-annual report also shows that Midea has achieved e-commerce platform coverage in Italy, the United Kingdom and France, and established the market position of Midea's online channel category TOP 10. Among them, Midea's overseas sales account for more than 40% of the company's total sales, and its products are exported to more than 200 countries and regions around the world, with 17 overseas production bases and 24 sales and operation organizations.
Under the complicated geopolitical background, such growth comes from decades of deep cultivation.
198 1 year, Midea was granted the right to import and export, and it was also the first enterprise in Guangdong to obtain this right. At present, OEM is the first step towards internationalization. For example, its production bases in Shunde and Vietnam in Guangdong are used as OEM factories, which on the one hand make full use of high-quality and cheap resources and labor at home and abroad, and on the other hand avoid the risk of trade barriers to a certain extent.
Until 2007, Midea began to go out through capital. Acquisition, joint venture, equity participation and holding have become the main ways to open up new markets.
During this period, Midea chose to establish a joint venture with American Carrier Latin America Company to jointly develop the Latin American market. 20 12 acquired 32.5% shares of Miraco Company in Egypt for 57.48 million US dollars; In 20 16, Midea Group acquired 80. 1% equity of Toshiba Household Appliances, the main body of Toshiba household appliances business in Japan, and obtained 40 years of global authorization of Toshiba brand and more than 5,000 patented technologies; 20 16 In the first half of the year, Midea Group acquired 80% equity of Italian Clivet Company.
Midea has not only gained the advantages of these companies in different aspects such as channels and technology, but also reduced their risks when entering the market through capital operation modes such as acquisition, joint venture, equity participation and holding.
With the increasing investment in overseas markets, Midea has also actively promoted the change of organizational form from "China export" to "local operation", continuously expanded the product categories of overseas production bases, implemented the strategies of manufacturing localization and supply chain localization, and continuously improved the product quality of overseas factories. At this time, establishing branches and production bases overseas has become the main way to go to sea.
Today, the global operation, one of the strategic axes of the United States, is in full bloom.
In 20 12, midea put forward three strategic axes of "product leading, efficiency driving and global operation", and global operation is one of the important pillars of midea. The data shows that Midea * * * has 34 manufacturing bases, of which 17 overseas manufacturing bases are located in 13 countries.
The layout of Midea's manufacturing base "17+ 17" is also the most basic guarantee for Midea to successfully resist the impact of the epidemic in overseas markets in the first half of this year. It is understood that domestic work recovered slowly in February and March, and the US 17 overseas production base ensured the supply to overseas markets. Since late March, the overseas epidemic has spread, but the domestic production base of 17 has been fully resumed.
The advantages of overseas layout are not only reflected in channels and market share.
On April 3rd, Midea Household Air Conditioning Global Cloud released a revolutionary new product, Midea U, which is unique in the product itself-innovative U-shaped groove design, which subverts people's cognition of window air conditioning in all directions. Traditionally, air conditioners need to be drilled before installation, but Midea U no longer needs this step.
This product is developed in China on the basis of market research in North America, and has obvious advantages in overseas innovation.
In a complex environment, we still have these changes and advantages, thanks to the distributed layout that has lasted for many years.
In fact, Midea once again emphasized this strategic axis in its letter to shareholders issued this year. The letter mentioned: "Adhere to the three strategic axes of" product leadership, efficiency drive and global operation "to further consolidate the business foundation. Today, the three major axes have become our daily work and business language, and the business data is constantly improving. "
How to arrange and manage overseas? This is the experience of trying to explore step by step in years of practice.
Localization has always been the biggest problem for enterprises to go to sea. Just like how overseas institutions manage locally, the current mode of beauty has been adjusted many times.
It is understood that the heads of early overseas branches of Midea were all from China. Later, considering various factors, they all changed to locals, and soon they were replaced by some from China. Finally, the localization mode of 1+ 1+n is adopted.
For example, the CEO or general manager, plus a general manager who is based in the headquarters, a vice president who is responsible for docking with the background, plus many localized customer-oriented sales staff. At present, this effect is the best
And these, thanks to the values-driven long-termism.
Long-term doctrine is continuous, uninterrupted and can resist temptation. Maintaining permanence often means that it has been gradually changing for so many years, without mutation. What's more, this requires strategic determination under numerous questions.
Under the epidemic situation in COVID-19, improving immunity has become a common cognition of the public. This is actually the key for enterprises to face the black swan. Long-term self-exercise is the only core that can be replicated.