In front of the international appliance giants, China’s home appliance companies are still only a “little younger brotherâ€.
On April 28, Shenzhen Konka A (000016, SZ) released its 2010 annual report. Last year, its total operating income was 17.111 billion yuan, a year-on-year increase of 29.06%; net profit was 83.947 million yuan, a year-on-year decrease of 44.65%. At this point, the basic disclosure of the 2010 annual report of China's home appliance companies was completed.
It is worth noting that Konka’s revenue of RMB17.1 billion is only equivalent to approximately 1.9% of Samsung’s 2010 revenue of USD138.9 billion. In fact, the “Daily Economic News†reporter found that the sum of the revenues of the six domestic white and black companies is difficult to compete with Samsung Electronics.
"Chinese home appliance companies said earlier that they must surpass Sony. In recent years, they have said they want to surpass Samsung. However, from a current point of view, a surpass has not been achieved," said home appliance observer Liu Buchen.
Samsung Electronics reported that last year Samsung’s turnover was 154.63 trillion won (approximately 913.1 billion yuan) and operating profit was 17.30 trillion won (approximately 102.2 billion yuan). The financial report shows that Samsung Electronics’ revenue mainly comes from the four major areas of semiconductors, mobile phones, LCD panels and digital audio and video.
During the same period, Qingdao Haier’s operating revenue was 60.6 billion yuan, equivalent to 6.6% of Samsung Electronics; Midea’s revenue was 74.6 billion yuan, equivalent to 8.2% of Samsung Electronics; Gree Electric Appliance’s revenue was 60.8 billion yuan, equivalent to Samsung. 6.7% of electronics.
In terms of black home appliances, the operating revenues of Sichuan Changhong, TCL Group, and Konka in 2010 were respectively 41.7 billion yuan, 51.9 billion yuan, and 17.1 billion yuan, which were 4.6%, 5.7%, and 1.9% of Samsung Electronics.
"Daily Economic News" reporter found that the sum of the above six companies' operating income is about 306.5 billion yuan, which is equivalent to only one-third of Samsung Electronics. Although the data contained in the business segment does not completely overlap with Samsung Electronics’ revenue structure, it can also be seen that there is a huge gap.
In Liu Buchen's opinion, the gap with Samsung is due to the "all-sided backwardness" of China's home appliance industry. He believes that this overall backward performance is objective and subjective. “In an objective sense, Samsung started earlier than Chinese home appliance companies, and South Korea’s market economy is also more complete, making Samsung have these development advantages.â€
However, Liu Buchen believes that what is more important is not these objective factors, but subjective factors such as corporate strategy, brand building, and market distribution.
According to the "12th Five-Year Plan for Development of China Household Appliance Industry" proposal, "Compared with the first-rate home appliance companies in the world, most companies in China still have insufficient investment in independent innovation, and there is a gap in their ability to innovate. Core technologies and key There is no breakthrough in technology; the homogeneity of products is relatively prominent and the added value is low, and high-end products are less competitive than world-class companies.â€
In addition, Li Buchen believes that the brand influence and appeal of international brands are strong, and the brand's role in the market is also very strong. While China’s brand influence is limited to the domestic market, there is no real international brand.
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