2017 is known as the most stringent year of property market regulation.
According to data from China Industry Information Network, in 2017, first-tier cities continued to increase regulation and purchase restrictions were restarted in second- and third-tier cities, resulting in a significant decline in real estate transactions. The transaction volume of 30 large and medium-sized cities, first-tier, second-tier and third-tier cities fell by 34.22 year-on-year respectively. %, 36.39%, 32.09% and 36.66%. Under the lagging influence of real estate purchase restrictions, the market has been worried about the future trend of the home appliance industry.
"Real estate market regulation exists objectively, but consumer confidence has actually risen steadily. Second, third, and fourth-tier cities are becoming more capable of spending. China is also ushering in an upgrade of inter-regional cascading consumption. This is exactly what Midea Opportunities to seize." Recently, Cui Jingtao, general manager of Midea Group's engineering business company, said in an exclusive interview with a reporter from 21st Century Business Herald that Midea will actively embrace new business models and explore cooperation with leading real estate companies to achieve a win-win situation.
As early as ten years ago, Midea Group established a professional team to serve the real estate industry. Last year, Midea Group's engineering business company was formally established, with the goal of becoming a platform for opening up various value chain departments and further integrating group resources. At the same time, in the face of increasingly fiercely competitive engineering business, Midea has played a differentiating card and carried out in-depth layout in residential, commercial, and long-term rental apartments, dislocation competition, and at the same time actively reformed its business model and promoted smart home deployment.
The real estate industry has always been an area that many home appliance brands cannot ignore. With the wave of hardcover houses sweeping, real estate matching purchases have become one of the most competitive arena for home appliance companies, and engineering business is gradually becoming an important new channel for home appliance companies.
According to AVC monitoring data, in the first quarter of 2018, the total scale of refined decoration of real estate was 344,000 units, an increase of 93.4% year-on-year, and the penetration rate of the refined decoration market was 20%, which is far lower than that of developed countries and still has huge development. space. In 2018, newly-added hardcover residential projects continued to grow, and it is expected to exceed 1.7 million units.
"Under the trend of full decoration and fine decoration, real estate developers will have direct purchase relations with brand owners, and developers and brand companies will cooperate more closely. The direct procurement model will provide a strong impetus for the organizational reform of home appliance companies." Chen Renliang, executive deputy general manager of the real estate division of Aoweiyun.com, analyzes and believes.
Faced with the new wave of hardcover, Midea has adjusted its business model accordingly. Cui Jingtao told reporters that in terms of services, Midea launched the industry's first "centralized procurement supporting model" on the procurement side. By signing large-scale procurement agreements with real estate developers, manufacturers and developers can directly supply products and greatly reduce intermediate costs. In addition, during the construction process, Midea took the lead in creating a project supervision system in the industry. From personnel training to construction process links, there are engineers for real-time supervision to ensure the quality of the project.
At the "Boao 21st Century Real Estate Forum and China Real Estate BRICS Award Ceremony" held on July 23, Midea Group was awarded the "2018 China Real Estate Supporting Procurement Preferred Brand", winning the real estate industry with high-quality products and perfect services Recognition.
At present, Midea Group's engineering business company has established long-term large-scale procurement partnerships with more than 60 real estate giants such as Vanke, Poly, Evergrande, and Country Garden, providing them with one-stop multi-category home appliance procurement solutions. The high-end star-rated hotel industry that has extremely high requirements for air-conditioning systems also cooperates extensively with Midea, such as InterContinental, Hilton, Marriott, and Sheraton.
Promote the implementation of smart homeIn recent years, with the popularization of smart home appliances, many products, inconsistent appearance designs, and inability to manage intelligently have become new pain points for home appliance consumption.
"What consumers need, first is the system of central air conditioning + central fresh air circulation. The second piece is the overall water solution, including drinking water and equipment water. Third, it is necessary to use the concept of smart home to integrate all home appliances. Connected and interconnected. Fourth, meet different decoration styles through different product sets." Cui Jingtao believes that the real market opportunity is for consumers to form a high-quality home life through the inheritance of the system from the purchase of single products to the purchase of packages. The breakthrough for intelligent management lies in the establishment of smart home systems.
"According to Party A's differentiated requirements, we will make 30 or 40 package combinations to choose from." Cui Jingtao believes that this will help Party A's overall efficiency drive. In addition, in the face of commercial smart homes such as apartments, hotels, schools, etc., Midea will tend to be standardized and customized. In addition to facilitating energy saving, it can also facilitate the unified management of the property and improve efficiency.
According to statistics, Midea has increased its smart home business in residential, commercial and long-term rental apartments. Within three years, Midea plans to build at least 2 million smart home systems for long-term rental apartments. "The ability of products, including the provision of products, installation and after-sales service, is highly valued by long-term rental apartment customers." According to reports, Midea’s current long-term rental apartment customers include Lianjia Ziru, CIFI Residence, Longhu Guanyu, etc. .
In fact, long-term rental apartments are becoming a new outlet. According to statistics from Aowei Cloud Network, one-third of the TOP30 real estate companies have entered the long-term rental apartment market. Leading real estate companies have upgraded long-term rental apartments to a key strategic direction. The scale of long-term rental apartment layout plans continues to expand, making The market scale of home appliances in long-term rental apartments has become considerable.
“Leading companies in all walks of life are transforming and innovating. The platform model is undoubtedly a successful business model. The current acquisition and construction platform of Vanke and Evergrande’s Hengteng **chain platform are both very innovative business models.†Cui Jingtao admitted. , The new model is a challenge to the traditional business model, "but we are willing to explore together with leading real estate companies to achieve a win-win situation."
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