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According to industry rules and the current situation, we predict the future of China in 2005 and eight home appliance industry will change.

A Chinese home appliance industry, largely completed the reform of property rights

2003,2004 on Property Rights Reform in China's home appliance industry is most concentrated in two years. In the past two years, Chinese home appliance industry has basically completed a large-scale ownership reform, the reform mainly in two ways: One is the domestic appliance business through acquisitions, MBO measures to make the property more clarity to recognize the entrepreneur's human capital, such as Haier curve MBO; type is through the company's strategic restructuring or capital market transactions, so that some have been unable to implement property rights reforms, or the decline of the home appliances business, "marrying", so that these businesses or property to the "owner homing. " For example Rongshida acquisition by the United States, the Changling was acquired by Sweet. Through two channels, more than 85% of China's home appliance industry, a well-known brand property rights reform has been completed. Chinese home appliance industry representatives as Changhong, Chunlan, Hisense and other enterprises will be major reform of property rights, there are three trends: part of the property has been walking the road of reform will be basically completed in 2005; the other part will be quite a long time in the future can not occur all Fang Liyi group were satisfied with the property rights reform, that is not a long time to complete the reform of property rights; third is the state of the large state-owned enterprises MBO of norms and limits, will also enable some companies wish to defer the implementation of MBO. Practice has gradually proved that China's household electrical appliance industry, property rights reform is not to solve problems of survival and growth of a panacea. Only companies with core competitiveness, better allocation of resources, to seize the transfer of world manufacturing to China the opportunity to go abroad is the road to survival and development. In this sense, China's home appliance industry has basically completed lap four industrial property rights reform. 2005 and the next few years, there will be a property rights reform of individual enterprises, but not the outbreak of large-scale property rights reform. Hisense, Changhong such enterprises will continue to slow the progress of the strategy of enterprise property rights reform and restructuring strategy.

Second, the Chinese home appliance chain channels and foreign channels to go to war

2004 12 12, China's retail industry to become fully open to foreign investment. The number of domestic household appliances more than 32,000 circulation enterprises, and similar enterprises in the United States has less than 1,000, and the top three electronics retailer, control up to 80% market share. Wal-Mart, Metro and some other retail chain giant, There is no flow of Chinese home appliance a threat to the United States, BESTBUY, also has not landed in China, only in China sourcing. However, these foreign-funded chain enterprises have a long-term "China strategy", that is not profitable initially planned to enter China, engaged in the retail sector, "dumping" to the profitability of foreign markets to supplement the Chinese market, this will bring to the local chain of home appliance business deadly price pressure, the next five years, bitter price war waiting for local appliance chain enterprises. Carrefour, Wal-Mart and other international famous brands and Chinese brands channels channels as major cities in the country are eager to build store site selection, as foreign retailers in China, rapid distribution, domestic appliance retail chain enterprises, and foreign competition will directly Expand. Foreign channels have a large number of chain stores worldwide and operating experience mature circulation, which are branded channels will cause great local competition.

3, Cixi household appliances division ring will appear

Cixi home appliance industry has been on the rise of recent years, China's domestic appliance industry division of labor has played a significant role in pushing forward. On the one hand and domestic big business and multinational corporations began to concentrate on the brand, gradually stripping some of the production and manufacturing, reduced manufacturing plants Cixi a large number of enterprises; on the other hand some of Cixi household appliances enterprises seeking brand to break out of the brand in the Chinese market is gradually heated knockout process, the birth of some of the new brand. Circle next Cixi Household Appliance Industry, corporate M & A between and outside the company will also expand its mergers and acquisitions, individual firms in such a process can seek to brand the breakout, and 95% of the company is famous for the production of other products.

4, multinational companies and Chinese enterprises appliance market share conversion will occur

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