The Grandeur of 618
Imagine if there were 80 Bird’s Nest stadiums filled with spectators! Wouldn’t it be spectacular? Yes, it definitely will be a spectacular sight to see.
On the day of 618, Midea, in only 13 hours sold its products to a total of 6.46 million users. This is equivalent to sitting in 80 Bird’s Nest Stadiums.
The entire population of Finland is 5.51 million and the number of customers who were served by Midea in only 13 hours on the day of 618 far exceeded the population of Finland.
The beauty of the harvest or in this case the business, is not only sales, but is also in this competition to achieve maximum user value, forming a true user and technology link.
From 618 to see the beautiful business logic, users create a link to the technological development. More than the sales volume, the link that the users created is valuable for Midea.
618 Day Sales in Numbers
In the 13 hours, the total number of members reached 26.73 million. The data shows that within 13 hours, Midea’s air-conditioner transactions reached 1,309,362 units, washing machines sold 646,216 units, refrigerators sold 402,301, water heaters sold 330,256 units, rice cookers, 579,521 units, electric fans, 126,2013 units and microwave ovens, 450,458 units.
Toshiba, the well-known Japanese home appliances brand was acquired by Midea some years ago. Under Midea’s retail, the total sales of TOSHIBA in the same period totalled 175.2 billion yuan, and the sales volume of its Little Swan washing machine was 460 million yuan.
618 is only an introduction of Midea Group. From another perspective, the success of the Midea has magnified and linked user value, which is actually the foundation of a sustainable business model.
The home appliance industry has already ended the first half of the scale competition and entered the ‘intermediate break’. The intermission time is to discuss the use of two tactics: the first is the users and the second is technology research and development. Both are also the essence of user value and links.
The reason is that technology is the core of the link. Long-term focus on R&D investment and innovation is the foundation of beauty at every turning point. Raising troops for a thousand days and the long-term accumulation of energy is often only to win the key battle.
According to the list of the ‘Top 100 Listed Companies in 2018’, the Midea R&D expenditure is ranked ninth, ranking first in the home appliance industry with 9.811 billion yuan.
While continuously maintaining the core competitiveness of its own products, Midea has positioned itself as a technology exporter in the industry, and the service target has expanded from consumer-level users to enterprise-level users.
Service consumers are well-understood, and service enterprise users reflect the strategic transformation of the US’s transitional meaning, that is, the transformation of “industrial Internet solution providers” from home appliance manufacturers, which is the industry hub in the popular sense.
The advantage of this is that you can choose yourself from the fiercely competitive front-line battlefield and turn to a higher development dimension. Of course, this requires you to have a basic level of technical advantage. This is the path of the beautiful M.IoT.
Another important feature is that Midea Group adheres to multi-category and business strategies in the field of home appliances, with the aim of enabling its home appliances to cover every corner of consumers’ home life. And this just confirms the values of Midea Group’s line, ‘Technology is perfect, life is beautiful’.
Technology Links to Achieve User Co-Creation
In the past two years, the home appliance industry has faced a cold winter, and various companies have also shifted from high-speed growth to high-quality development. This means that scale growth is no longer adapted to the new battlefield, and changing the strategy to the promotion of quality has become the new jungle rule in the industry.
New retail, new demand, and new technologies are trying to shake the old order from multiple directions. The market is changing and the demand is evolving. What companies need to do is to take advantage of the trend in the first time and adapt to the new trend in the shortest time.
Simplicity and grandeur, fashion and retro, they are connected to the convenience and efficiency of the online, but also focus on the offline fancy scene experience. The sudden rise of the new generation of consumer power makes the home appliance sector somewhat unpredictable. The expectations of the future are confusing because the new challenges need a broader space to be confronted and overcome.
At the beginning of the year, the company launched the young internet home appliance brand ‘Bugu’, and launched a number of new home appliances in just one month. This year, on 618, a total of 21,668 new users joined the Valley to create together. The users’ differentiated and personalized needs are traced back to product development, laying the foundation for new product launch and technology practicality. In the eyes of the Midea, the integration of IoT, AI and other technological means should not be a gimmick. It should be more able to enhance the consumer experience of home appliances.
The fierce confrontation of the 618 e-commerce platform in the past is more like a year-end inventory of new appliances of all major power companies. It not only tests the channel advantages of various platforms but also assesses the technological force value of home appliance enterprises.
The shipments from the Midea Group on major e-commerce platforms have also confirmed that the competition in the home appliance industry will become more intense in the future, and the competition model will change quietly from the previous scale war to the innovation war and technology war.
[Blue Technology] Shuimu