Even with the increased push for trading in old appliances for new ones, there has not been the expected significant growth in appliance sales after the Spring Festival. On the contrary, recently, many merchants in the "Appliance People" WeChat discussion group have reported that the market is becoming increasingly bleak, especially for small and medium-sized businesses that did not qualify for national subsidies, making their days extremely difficult. Everyone is very confused: what is the future path for small and medium-sized appliance retailers, especially those run by couples?

"Appliance People" believes that in the development process of the appliance industry, channel changes are rapidly breaking down the original channel models and reshaping the market structure. Among these, the acceleration of the DTC (Direct-to-Consumer) model is making the trend of removing intermediaries in appliance channels more evident. Under this wave of change, brand-official-led channel forms will become mainstream, which brings unprecedented challenges and impacts to traditional couple-run appliance stores.

The acceleration of the DTC model in appliance channels, official channels will become mainstream

1. The rise of brand official online platforms

Many appliance brands are focusing on various direct-to-consumer online sales platforms such as flagship stores on major platforms. Through these platforms, brands can bypass multiple levels of distributors and establish direct connections with consumers, achieving product sales. When consumers buy appliances on brand official online platforms, they can not only obtain first-hand product information and enjoy more targeted after-sales services but also participate in exclusive online promotional activities offered by the brand.

2. Live streaming sales and new paths through social e-commerce

Live streaming sales have become a popular method for appliance sales, with brands directly inviting hosts or executives to conduct live streams, showcasing product features, demonstrating usage methods, and providing exclusive discounts during the live stream. Social e-commerce platforms have also opened up new avenues for appliance sales, where consumers share and recommend appliance products through their social networks, achieving viral sales. For example, Dong Mingzhu, CEO of Gree, has conducted several live streaming sessions herself, creating impressive sales records and allowing more consumers to directly understand the advantages of Gree products. At the same time, some appliance brands have launched group buying and price slashing activities on social e-commerce platforms, attracting a large number of consumers to participate.

3. Expansion of offline brand experience stores

To enhance interaction with consumers and improve brand image, appliance brands will increase the layout of offline experience stores in the future. These stores will display and sell the full range of brand products, allowing consumers to personally experience the functions of the products. Professional sales staff will provide personalized purchase recommendations based on consumer needs. For example, Xiaomi Home, in addition to selling smartphones and other digital products, also places significant emphasis on home appliances. Consumers can experience the interconnectivity of Xiaomi's smart home ecosystem products, from smart speakers to smart appliances. This experiential sales approach has won a large number of users for the brand.

Huge impact on traditional couple-run stores, transformation requires support from a strong backer

The rise of the brand official DTC model has had a huge impact on existing traditional channels. Traditional couple-run stores, due to limited brand resources, find it difficult to compete with the direct sales channels of major brands, leading to a continuous loss of customers. Many couple-run stores...