Shanghai market is a special market for domestic brands. Although Beijing and Guangzhou are the same big cities, they are not as difficult to operate as the Shanghai market, and many marketers feel headache about the Shanghai market. Household refrigerators are no exception. In Shanghai refrigerator market, foreign brands can be described as infinite scenery and firmly grasp the high-end market. Domestic refrigerators are only available in suburban markets, and there is also a cold roast. Some people vividly call the Shanghai market the chicken ribs of domestic refrigerators, which are tasteless to eat and a pity to abandon. After all, Shanghai is a place to build brands and images, and many manufacturers are painful and persistent.
Through the investigation of Shanghai refrigerator market, the author found that domestic refrigerators are not as terrible as the legend and have huge sales potential, but the potential of many domestic refrigerators has not been tapped. Through investigation, the author has formed some ideas on the operation of the Shanghai market, hoping to provide some valuable suggestions for domestic refrigerator readers and sales colleagues to break through the Shanghai market.
First, Shanghai refrigerator market analysis
1, the mainstream brand in the refrigerator market
1), foreign brands: Siemens, LG, Samsung, Bosch, Electrolux, Panasonic, Toshiba and Sharp.
2) Domestic brands: Haier, Xinfei, Meiling, Royalstar, Midea, Rong Sheng, Little Swan and TCL.
2, refrigerator sales channels
1), home appliance chain stores: Yongle, Gome (and Gome Supermarket), Suning, Best Buy Supermarket (Xujiahui only, mainly high-end home appliances), about 160, which are the main channels for refrigerator sales in Shanghai.
2) Large supermarket chains: Wal-Mart, Carrefour, Lotus, Tesco, Century Lianhua, etc. Mainly low-priced and small and medium-sized refrigerators, there are many and miscellaneous brands, and the sample models of each brand are relatively few, many of which are refrigerator models specially designed by manufacturers.
3) Traditional sales channels: large shopping malls, such as Yaohan, are mainly foreign brands; The specialty stores in suburban counties (Chongming, Qingpu, Chuansha, Nanhui, Jiading, Songjiang, Jinshan, Fengxian and Minhang) mainly focus on household refrigerators. With the further penetration of home appliance chains in suburban counties, such specialty stores are gradually shrinking or shifting to towns and villages.
3. Market structure
1), brand structure: foreign brands are dominant, especially high-end refrigerators; Domestic brands are supplemented by low-end products. At present, foreign brands are infiltrating into low-end refrigerators.
2) Sales pattern: The top three foreign brands are Siemens, LG and Samsung; The top three domestic brands are Haier, Xinfei and Meiling (or Midea Rongshida).
3) The total sales ratio between foreign brands and domestic brands is about 5: 5 (about 6: 4 in urban areas; About 4: 6 in suburban counties)
Second, the SWOT analysis of Shanghai household refrigerator market
1, current problem:
1), brand level: brand power is generally weak, Shanghai consumers prefer foreign brands, and the popularity of domestic refrigerators in Shanghai market is generally low, especially among young consumers. This state is difficult to change in the short term.
2) Lack of market operation:
A. Macroscopically, due to the comparison of input and output and the characteristics of Shanghai market, traditional and general market investment will not be greatly improved. Many domestic refrigerator manufacturers are in the stage of maintaining operation, and there is no innovative market operation mode, and even the most basic market operation has not been put in place. Market manipulation lacks systematicness and continuity, and it is disorganized.
B. Microscopically, the terminal image is generally poor and lacks a standardized and unified image layout; Lack or singleness of promotional props; The location of the site is generally backward or remote; There is a lack of effective promotion guidelines and promotion information release in the store.
3) The sales team is weak in fighting capacity;
A. Sales Manager: Due to performance pressure, short-term sales and the importance of the Shanghai market, the managers of many domestic refrigerators in Shanghai branch have changed frequently. If you don't do well, you have to leave. If you do well, you will be promoted soon. Some sales managers came for internship training. The generals are unstable, the morale of the army is lax, and the combat effectiveness and morale of the team are low.
B. Sales staff: Due to the sluggish market performance and mediocre sales, the income of sales staff is lower than that of other markets in China. The excellent salespeople in the company are reluctant to work in the Shanghai market. Because the salary of domestic refrigerators in Shanghai market is relatively low, it is difficult to recruit excellent sales staff, only some newly graduated college students. But once you have certain working ability and experience, you will often choose to jump ship and go to some foreign brands. This has led to the lack of excellent sales staff in the team.
C. shopping guide: the market is not what it used to be. The glory of domestic refrigerators has led to a large number of excellent old shopping guides with many years of rich experience being poached by foreign brands (for example, a large number of domestic refrigerator shopping guides from 5 to 10 have flowed to Siemens, Samsung and LG). Due to the negligence of sales staff in the management and care of shopping guides, many shopping guides have no sense of organizational security and a large number of losses. The basic salary is low, it is difficult to recruit excellent shopping guides, and only some young newcomers can be recruited. Unlike shopping guides for digital products, refrigerator shopping guides need to have certain life experience, so young shopping guides often can't catch customers and have low output. In addition, the shopping guide team lacks formal training, is unfamiliar with product knowledge, has single promotion skills and has no formal and unified promotion statement.
4) The cooperation with chain stores is not smooth, and the negotiation is at a disadvantage. Due to the weak brand power, poor terminal sales and low venue fees, the location of the venue in the store is poor, which further leads to the deterioration of terminal sales, the loss of excellent shopping guides, the increase of old products, the difficulty of chain financing, the impact on delivery, the shortage of terminals, or the lack of best-selling goods, and so on. On the other hand, the salespeople don't communicate with the chain store in place, and they are positioned as three brands from the heart. They dare not talk about some requirements with the chain store, even if it is a reasonable reason, let alone strive for some resources.
2. Advantages of household refrigerator:
Compared with foreign brands, domestic refrigerators also have some advantages, such as cheap price, rich product line and early entry into Shanghai market. For refrigerators with the same capacity and style, the price of domestic refrigerators is only about two-thirds of that of foreign brands, and some models are even lower.
3, the threat of household refrigerator:
The market share is gradually declining, and the strategic prices of foreign brands and some models are lower, further eroding the middle and low-end market share. Recently, after occupying the high-end market, some foreign brands of refrigerators began to focus on low-end products, which is undoubtedly a potential threat to domestic refrigerators. In addition, the price war between domestic refrigerators has further reduced profits.
4. Opportunities for household refrigerators:
1), the technical level of the industry is converging, and the technical barriers are getting less and less. Foreign brands and domestic brands are made in China, and the assembly line and operators are the same. Through systematic brand operation and market operation, there is hope to open the Shanghai market.
2) The suburban county has huge market potential and the demand is increasing year by year, which is an opportunity for the development of domestic refrigerators. At present, domestic refrigerators are still very competitive in the suburban market.
3) After two years of integration, many domestic refrigerators have reached a considerable scale and strength, and their management and operation have begun to be standardized, so they can compete with foreign brands in the Shanghai market.
Third, the breakthrough strategy
I) Overall steps:
1, busy outside must be solved first.
At present, for domestic refrigerators, we must first make the top two domestic refrigerators, and then expand the battlefield to foreign brands. Rush to attack, Maicheng will fail, first from the domestic competition refrigerator into the knife, and strive to be the boss of domestic refrigerators.
2. Suburban counties surround cities.
Domestic refrigerators have a certain foundation and strong competitiveness in the suburban market. We should focus on suburban management, manage suburban stores, and further improve suburban sales and market share. Avoid the urban battlefield where foreign brands are strong, attack from suburban counties, and enter the urban market after the suburban market stabilizes.
3. Concentrate resources on key high-quality channels and storefronts to drive overall development.
At present, all channels and stores are divided into high-quality channels and inferior channels, and stores are divided into A, B and C stores. It is necessary to invest manpower, material resources and financial resources in high-quality channels and A and B stores. First, do a good job in high-quality channels and A and B stores, and then fully infiltrate them to achieve overall development.
4. protracted war
Doing a good job in Shanghai market is not a one-off event, but a protracted war, especially for domestic refrigerators. After all, foreign brands have gained a firm foothold in the Shanghai market and have great influence. In order to do a good job in Shanghai market, it is necessary to make a long-term sustainable plan for domestic refrigerators.
2), seven breakthrough strategic elements
1 to build an efficient and powerful sales team.
1), deploy troops throughout the country, select excellent, operational and passionate branch general managers from other regions, and give them full rights and resources. Expected management: If you can operate the Shanghai market well, give special rewards in time, continue to do a good job in the Shanghai market, and promote reuse after three years. The selection of the general manager of the branch must be cautious, choose the most suitable one at a time, and never change it frequently, because every change will bring about market fluctuations for 3 to 5 months. The stability of the branch general manager will directly affect the stability, cohesion and combat effectiveness of the whole sales team.
2) The general manager of the branch set up a sales team to select some promising young salesmen with high comprehensive quality, rich experience and willingness to do practical things in the company and send them to the Shanghai market. For this part of the staff, the salary is higher than that in other regions. After all, the consumption and expenses in Shanghai are relatively high. In terms of promotion incentives, we should give clear guidance. Once the sales system that each salesman is responsible for is completed and the whole market is started, every salesman has great promotion opportunities. In addition, some local salesmen who are familiar with the Shanghai refrigerator market can be recruited from Shanghai to give full play to their resource advantages in local chain stores and other channels, and other business personnel can also understand the Shanghai market faster and operate the Shanghai market more conveniently. For these employees, the salary must be higher and they must be competitive in the refrigerator industry in Shanghai, otherwise the stability will be affected.
3) The shopping guide is the first person in the sales battlefield and the key factor to complete the final sales of refrigerators, which is called "one step in place". The combat effectiveness of the shopping guide team is the key to the success or failure of attacking the Shanghai market. Without the smooth terminal sales, the whole branch chain will be greatly affected. How to build an invincible shopping guide team?
First, the existing shopping guides are trained in product knowledge, promotion skills and communication skills, and standardized terminal management. Training must be systematic, planned and continuous;
Second, optimize the existing shopping guide team and eliminate a number of unqualified shopping guides;
Third, dig up some excellent shopping guides from other manufacturers.
Fourth, a collection policy can be formulated. We can give preferential treatment to outstanding shopping guides who have worked in our company for many years before leaving, and welcome them back. The return of this part of the shopping guide, on the one hand, has strengthened the existing shopping guide team, on the other hand, it can also play a role in stabilizing the existing shopping guide team.
4) Four functional departments (logistics, after-sales, finance and administration):
Everything is for sales, sales-oriented, do a good job in background support and service, ensure the smooth operation of all links in the whole branch, and avoid the problems of various functional departments from affecting the sales work. The four functional departments are an important part of the branch team and play a role in stabilizing the morale of the army. The four functional departments must pay attention to their words and deeds and work style, and do everything well with a service heart and a positive attitude.
2. Brand communication strategy
As the brand communication of domestic refrigerators in Shanghai, we must raise the banner of "Made in China" and weaken the influence of foreign brands. As we all know, the production of foreign brands is in China (except for the original imports of individual brands and models), and some even are OEM by domestic refrigerator manufacturers. Therefore, under the banner of "international quality, made in China", it is easier to spread domestic brands, shape brand reputation and promote sales. Of course, this is a long-term process, but as long as you persist, there will always be gains. In recent years, China people's national consciousness and plot are getting stronger and stronger, and the quality of domestic refrigerators is indeed improving, so many consumers in Shanghai are gradually becoming rational. Made in China, it will gradually take root in people's hearts. Under the banner of "international quality, made in China", we can also cooperate with other refrigerator manufacturers in the United Nations, which will be more convincing and spreading.
3. Mode of market operation
Standardize market operation and change market operation strategy. First of all, market research, further analysis, find out the cause of the problem, find a breakthrough. First of all, domestic refrigerators should make a breakthrough in domestic brands and rank among the top domestic brands, and then further compete with foreign brands.
To manage the Shanghai market, we must first do a good job in the internal division of labor of sales personnel and divide the sales areas. At present, the home appliance manufacturers in Shanghai market are all based on the chain system and divided into system management, for example, Gome is responsible for one person, Suning is responsible for one person, Yongle is responsible for one person, supermarket system is responsible for one person, and suburban county wholesale is responsible for one person. Moreover, a system will have a salesman in charge of chain communication and a salesman in charge of terminal retail management. The advantage of this is that the sales staff responsible for the business is convenient for internal management and communication, because they are in the same system. However, the disadvantage of doing this is that the Shanghai market is very large, with more than 60 home appliance chains/KLOC-0, and the journey time is relatively long. The three major chains often gather in the same business circle, and a retailer is only responsible for and manages a systematic store in a region, which greatly wastes manpower and material resources. It also led to many stores, and no sales staff came to the door for one month or even two months. Objectively speaking, so many shops and one shop assistant are too busy. Therefore, zoning management can solve this contradiction, and divide the Shanghai market into several regions according to certain standards, mainly geographical location and traffic, so that salespeople can manage stores in different regions.
The market operation strategy should be different according to different regions, and the promotion strategy and terminal sampling in suburban counties and urban areas should also be different. The operation idea is strictly in accordance with the overall idea, that is, "prosperity outside must be decided first", "besieged city in suburban counties", "concentrating resources to attack key high-quality channels and stores to drive overall development" and "protracted war".
4. Channel strategy
Establish a strategic partnership with home appliance chains, get rid of the current passive situation, follow the principles of mutual benefit, fairness and justice, avoid slave cooperation, do a good job in basic work, and speak by sales volume. On the other hand, do a good job in chain public relations communication, grasp the hidden rules of the industry, ensure the supply of goods in the store, and strive for a better venue location.
Develop and maintain high-quality distributors in suburban counties, and occupy the fourth-and fifth-grade markets in suburban counties through them.
Build a third channel platform, that is, operate the chain through dealers. Find a dealer in Shanghai who is currently making household appliances and has strong capital and logistics strength, and operate a household appliance chain through them. With their resources, we can break the barriers of cooperation with the chain, ensure the supply of goods in the store, reduce the pressure of payment, and the company's business personnel devote themselves to the management and service of the terminal. Of course, this operation mode needs the support and cooperation of the company headquarters to proceed smoothly.
5. Product strategy
It fully demonstrates the rich advantages of the domestic refrigerator product line and the characteristics of beautiful appearance and diverse functions. In addition, analyze every district, every store, sample competing products and foreign brands, and carry out a point-to-point product war.
Domestic refrigerators can analyze the advantages and disadvantages of competing products according to the specific situation of the current market, and customize some competing models suitable for the Shanghai market for the headquarters.
Reasonably grasping the ratio of profitable products to impulse products requires both sales volume and profit. Only when the products are profitable can the branches be profitable and continue to develop and reinvest.
6. Price strategy
Reject low-price strategy, price war and loss-making operation, and raise prices appropriately to provide more profit space for market operation. Consider raising the price of the original product by 5%- 10%. Many salespeople are most afraid of price increases and like to reduce prices, thinking that there will be sales if prices are reduced. In fact, the price is a double-edged sword, not all price cuts, sales will increase anywhere and at any time. Shanghai is a special market, and price reduction will only bring about a short-term increase in sales. After a long time, it will not only damage profits, but also reduce the brand image invisibly, making it more and more difficult for brands to operate in the Shanghai market and to extricate themselves from losses.
Household refrigerators need to raise prices in Shanghai, and only by raising prices will they be on the right track.
7. Policy tilt.
In order to do a good job in the Shanghai market, domestic refrigerators should be tilted in the aspect of "food and grass first". To start this market and make a breakthrough in this market, more attention and support from the headquarters is crucial.