Eco-brand strategy “whip” again
The customer unit price reaches 220,000 yuan
The efficiency improvement and fee reduction brought by the synergy has become the cornerstone of Haier Zhijia’s profitability growth, and Haier Zhijia’s ecological brand strategy will build a bridge for its profit model transformation.
After the accelerated implementation of Haier Smart Home’s ecological brand strategy in 2019, the profit model is quietly changing. In the first three quarters of 2020, the company achieved ecological income of 7.2 billion yuan, an increase of 114% year-on-year, of which Q3 single quarter was 3.4 billion yuan, an increase of 138% year-on-year, maintaining a geometric expansion pace. After the privatization and integration of Haier Appliances, it will be more conducive to the deepening and expansion of smart home solutions.
In the domestic market, the brand-new scene brand Triwing Bird was released in September, and Haier Zhijia moved from selling products to selling scenes. Only 50 days after opening, the sales of Beijing 001 Experience Center exceeded 26 million, and the unit price of Shanghai 001 store reached 220,000 yuan. In the first three quarters, 687,000 sets of scenarios were sold, a year-on-year increase of 24.5%.
Haier Zhijia is continuing to break industry boundaries, the ecosystem is steadily expanding, and a win-win business pattern is beginning to emerge. At present, it has attracted 12 major categories of home improvement, food, health, logistics, and nearly 1,000 ecological resources to build an ecological platform. For example, the Internet of Water has absorbed more than 300 ecological parties in 11 major industries, providing users with solutions for the entire process of washing, rinsing, cleaning, storing, using, drinking, and heating. There are already 1,200 building materials stores across the country that sell Triwing Smart bathroom.
In addition, Haier Zhijia has adopted a strategy of “one of the best” in the high-end brands-either Haier refrigerator first, Casarte refrigerator second; or Casarte refrigerator first, Haier refrigerator second.
Although Haier Zhijia did not publicly announce the “one of the best” strategy, market data has given such a result. According to data from Zhongyikang, in October this year, Casarte Refrigerator became the TOP2 brand in the industry with a market share of 13.69%. In November, it accounted for 14.56% and continued to rank second in the industry. In addition, in Shanghai, the share of Casarte refrigerator is 17.1%, which is the No. 1 brand in the industry.
And Casarte washing machine also began to seize the industry position. The data in the 49th week of Zhongyikang also showed that the Casarte washing machine not only won 77.5% of the high-end market above 10,000 yuan, but also reached 39.4% of the market share in the price range of 8,000-9999 yuan, accounting for the first place. It accounts for 11.2% of the industry, ranking third. The proportion of Casarte’s complete sets of customers and the steady growth of customer unit prices, brand effects promote the continuous growth of the gross profit margin of the ecological business.
Overseas markets, with more than 20 years of globalization, are currently in mainstream markets such as the United States, Germany, France, and Japan, showing a benign development trend of high-end improvement, double-digit revenue growth, and profit improvement.
In the era of the Internet of Things, the difference between the ecological route and the traditional home appliance business is only the difference in profitability on the surface. In essence, it is the evolution of the valuation logic after the transformation of Haier Zhijia’s business model.
2021, it must be more exciting
Haier Zhijia’s 2020 has been transformed.
Haier Zhijia, which is privatized and listed on H shares, will be ready to go with a new look. Whether it is doubts about the overall operational efficiency or concerns about the low net profit margin of overseas business, it will continue to improve in 2021; whether it is the expectation of Casarte to expand its boundaries or the concern for the continued implementation of the ecological brand strategy, All of these will be presented in 2021, releasing the results and value of privatization, and the future is even more worth looking forward to.