| What are "white goods"? | | | | Furthermore, the major brands in China are using a |
| White goods are appliances used to accomplish daily | | | | number of different codes in their brand |
| household tasks and include items such as | | | | communication. Some of the main ones are listed |
| air-conditioners, refrigerators, washing machines, | | | | below: |
| microwave ovens, and stoves. They are consumer | | | | 1. Foreign and premium |
| durables traditionally painted only with white enamel | | | | 2. Advanced technology |
| finish. Today, despite their availability in many different | | | | 3. Colorful and patterned designs |
| colors, they are still often referred to as white goods. | | | | 4. Spaciousness, freshness |
| As the standard of living and spending power of | | | | 5. Modern or Western lifestyle |
| Chinese consumers continues to rise, there is great | | | | 6. Elegance |
| potential in the white goods market for both foreign | | | | 7. Chinese status |
| and Chinese companies to build strong brands. | | | | 8. Healthy lifestyle |
| How is the market for white goods performing in | | | | 9. Energy saving or environmental protection |
| China? | | | | There are also some unique communications such as |
| Stimulated by a number of government policies, retail | | | | a "back to nature" themed advertisements and the |
| sales of the domestic white goods market | | | | promotion of a fridge for children. |
| experienced double-digit growth in 2009. Increases | | | | How can a brand build equity in the growing white |
| were seen in all three major segments, including | | | | goods market? |
| refrigerators, washing machines and air-conditioners, | | | | The white goods market in 2009 was prosperous, and |
| with the sales of refrigerators achieving the fastest | | | | it is safe to say it will continue to grow in 2010. Local |
| increase. In 2009, policies such as "home appliances | | | | brands like Haier, Midea, and Hisense are taking the |
| going rural", "exchange the old for the new" were | | | | lead in the domestic market, while foreign brands are |
| implemented, causing the demand of the domestic | | | | still strongly competitive as they often manage to |
| market to expand rapidly, especially in the vast rural | | | | transfer their established brand equity over to the |
| areas where refrigerators were swiftly popularized. | | | | Chinese context. It is important for domestic brands to |
| When examining China's white goods industry in 2009, | | | | focus on building brand equity rather than relying only |
| we find that the performance of different segments | | | | on short term promotional tactics. |
| varied greatly. In the refrigerator market a stable | | | | As we have discussed in previous articles, growing |
| structure began to emerge with certain brands rising to | | | | brands should concentrate on building brand strength |
| the top. For washing machines, new concepts such as | | | | by differentiating themselves from their competitors |
| green or high-tech versions were released, leading to | | | | and becoming more relevant for their consumers. |
| the formation of a high end market. Air-conditioner | | | | Differentiation could be achieved through innovative |
| brands faced more competitive pressure, so innovation | | | | product design or functionalities, unique brand |
| became a differentiating factor. | | | | communication efforts that use different codes than |
| Looking at the white goods industry as a whole, | | | | their competitors, and much more. It is not enough for |
| consumers consider brand names when selecting | | | | the products only to be different— they need to be |
| white goods. This highlights the importance of brand | | | | relevant to white goods users by making aspects of |
| building in this burgeoning industry. In 2009, domestic | | | | their daily lives more convenient or efficient. Here, |
| companies tried to strengthen their brands through | | | | conducting market research to understand consumer |
| mass marketing and advertising, and by extending their | | | | needs, trends, and competitor positioning will be |
| product lines and sales channels. | | | | essential. |
| What brand implementation strategies are currently | | | | Conclusion |
| being used? | | | | The white goods market in the world's most populous |
| Major brands are using a variety of implementation | | | | country expanded rapidly during 2009 and will keep |
| strategies. Traditional advertising channels such as | | | | growing in the future. White goods brands, both |
| television and billboard advertisements are commonly | | | | domestic and global, have the potential to experience |
| used, often with celebrity endorsement to appeal to | | | | huge growth in the years to come, but they need to |
| consumers. White goods product placement can be | | | | pay attention to their brand strategy. Growing brands |
| seen on TV series and movies. Some brands launch | | | | should first focus on increasing brand strength by |
| innovative products and new product lines to expand | | | | increasing their differentiation and relevance in the |
| their reach. Also, to reach untapped or less competitive | | | | minds of consumers. By identifying codes being used |
| markets, some brands focus on specific market | | | | by other brands in the industry, a white goods brand |
| segments, with high end brands like Siemens targeting | | | | can locate a free space to launch their brand |
| wealthy 1st tier consumers, while other mid-market | | | | implementation efforts in China. |
| brands penetrate 2nd, 3rd, and even 4th tier markets. | | | | |
