In general, May 1st is a timeline for businesses to push for controversy. The home appliance industry will also join this market. However, Nail Technology has noticed that from the perspective of this year, many household electrical appliance categories have experienced sluggish performance in the May 1st market, and the brand's sales intention is not strong. Once the golden promotion, there is now a tendency to become a chicken, why is the reason?
Take kitchen appliances as an example, look at the data first. Nail Technology noticed that the kitchen electricity market fell into a rare volume in the first quarter of 2018. According to the total channel data from Ovey Cloud Network, the retail sales in the kitchen appliance market in the first quarter of 2018 was 12.8 billion yuan, down 6.1% year-on-year; the retail volume was 13.669 million units, down 3.3% year-on-year, and the total amount was equal. fall.
The offline market is even more difficult. In the 1-12 weeks of this year, the offline retail sales of range hoods, gas stoves, and disinfection cabinets in traditional kitchen appliances were -16.7%, -7.5%, and -11.9% respectively.
In the depressed market environment, using 51 stalls to raise sales should be a normal strategy for businesses. However, the reality is that the kitchen electricity market remains sluggish during May 1st.
From the data monitored by Aowei, although the online market has grown, it has seen a significant decline from offline, and the overall market is still in a downward trend. According to AVC data, the overall market size of kitchen appliances (Yanzao Xiao) was 5.25 billion yuan, a year-on-year decrease of 8.7%.
Why is there still no obvious improvement during the May 1st period in the context of the declining overall market in the first quarter? According to the analysis of nail technology, there are several reasons:
First, market demand has entered a relatively weak period as a whole, and the popular incremental market dividend has gradually disappeared. In particular, under the strict national real estate control policy, real estate sales continued to slump, which had a negative impact on the kitchen appliance market. It is worth noting that from the monitoring data, the sales of online and offline single-item products increased slightly compared to the same period in 2017, which means that the kitchen and electric appliance industry is gradually shifting from the incremental market to the stock market.
Second, in the case of maintaining sales volume, mainstream brands dare not raise prices, resulting in an overall decline in sales. From the data of Aowei, the mainstream brands also focus on the mid-end output price segment in product launch, or maintain a stable price, and the overall market has no ups and downs in price.
The third is for 618 storage, do not want to advance overdraft the market. In 618, the promotion of the China University of Technology has received more and more attention from manufacturers in recent years. Both channel and brand companies have invested a lot of resources. If relevant resources are released in advance in May, it is obviously not conducive to the completion of the mid-year big promotion goal. Therefore, the strategic abandonment of May Day will be the choice of many brands.
In summary, the market has gradually weakened its willingness to raise prices under the prevailing brand supply pressure, and has promoted storage capacity for the mid-year and large-scale enterprises. This has caused the market size of the May 1st market to be difficult to boost, and has accumulated from the golden period. It is not difficult to understand.
Ding Shaojian, founder of the observatory and nail technology, believes that in the first half of the year, there are more big promotion nodes, from Yuanchun to 418, to May 1 and 618. The interval between the two periods is very short. Not only the overall market demand is limited, but also the brand The promotion resources of the merchants are also limited, leading to some traditional big promotion nodes gradually declining. How to more reasonable layout of the sales promotion node in the future is a common problem faced by brands and distributors.
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