One confirmation was acquired and one continued to be increased. Pentium Electric and Supor, the two former domestic small home appliance giants, are losing local color. For domestic small household appliance enterprises, although they are acquired by powerful companies such as Philips and SEB, they can obtain a large amount of industrial capital and foreign technology, but the gradual loss of their own brands may follow. This is not a good thing for the consumer. The domestic daily chemical industry is almost entirely the acquisition of foreign capital is a lesson.
1 mergers and acquisitions
On July 11, Philips Electronics announced that it had agreed to acquire Pentium Electronics. After completion of confirmatory due diligence and other customary closing conditions, the acquisition is expected to be completed in the fourth quarter of 2011. This is the first official voice of Philips for the acquisition of Pentium, but also following the acquisition of Supor by France’s small appliance giant SEB (Secbo Electric), another foreign giant took over the acquisition of local small household electrical appliance companies.
According to Kong Xianghui, chairman and executive vice president of Philips Greater China, the global headquarters of the company's home care business unit has been relocated to Shanghai to acquire Pentium, which will help expand the product line and accelerate the deployment of the Chinese kitchen appliance market. Hong Shibin, deputy director of the Marketing Committee of the China Household Electrical Appliances Association, told reporters that the acquisition of Pentium Appliances is expected to make up for the shortcomings of Philips in the 3rd and 4th markets and directly increase revenue and market share. According to data from Yikang, the Pentium revenue in 2007 was over 1 billion yuan. From January to April 2011, the market share of Pentium rice cookers was 7.5%, ranking third in China; Induction cookers and electric pressure cookers ranked fourth.
Three days before the official announcement of Philips’ acquisition of Pentium, the SEB controlling shareholder SEB (China Electric) announced that it had received approval from the Chinese Ministry of Commerce and agreed in principle that Supor Group and its founder, Su Zengfu, will transfer approximately 20% of the shares to him. After the completion of the transaction, SEB International will hold 71.31% of the shares, and the Supor Group's shares will fall to 11.76%. Founder Su Zengfu will no longer directly hold company shares. This means that the Su family is stepping out of the company he founded.
Followed by the pace of mergers and acquisitions of Philips, there are domestic enterprises ASD. On July 12, ASD issued an announcement that it agreed to acquire wholly-owned assets related to the small household appliance business of Dongguan BBK Home Appliance Co., Ltd. at a price of 22.88 million yuan from its wholly-owned subsidiary, Zhejiang Aishida Life Appliance Co., Ltd., and seeks to cross the border from the cooker to the small household appliance industry. expansion. Previously, SEB had wanted to acquire a controlling stake in ASD without success and instead bought Supor.
2 Small Home Appliances M&A Will Continue
After more than ten years of development, the large household appliance industry has been relatively stable. Whether it is a foreign-owned brand or a domestic giant, it is not easy to find suitable acquisition targets in the field of color TV and air-ice washing. Relatively speaking, China's small household electrical appliance enterprises have a large number and rapid development, but their scale is not large. They are mainly concentrated in various cities on the eastern coast. The future is bound to have a fierce process of survival of the fittest and reintegration. Therefore, it is more suitable for mergers and acquisitions.
According to the reporter, at present, there are more than 60 electrical appliances in the home appliance chain stores, and if you count the secondary and tertiary markets and some miscellaneous brands, there are no less than hundreds of small appliance brands. The profits of small household appliances are generally 10% higher than those of large household appliances, and the profits of some miscellaneous brands are as high as 50%. For this reason, the small household appliances industry has also been referred to by the industry as "the last profit-making cheese in the home appliance industry."
One of the important reasons why foreign investment can become a big buyer of domestic home appliance companies is that instead of “initiating their own products†to create new products and nurturing markets, it is not as good as “transferring customers†and quickly integrating them into the Chinese market through mergers and acquisitions of local brands. In fact, the success of SEB to Supor also accelerated the pace of mergers and acquisitions by other foreign giants. According to public statistics, Supor's revenue in 2010 was 5.622 billion yuan, and its net profit realized was 405 million yuan. The year-on-year growth in revenue and net profit in the first quarter of this year exceeded 30%.
Italy's home appliance giant DeLong Group recently announced high-profile announcements that it will acquire China's "a group of" domestic appliance brands. It is reported that DeLong has already drawn up a list of mergers and acquisitions, involving Shanghai, Zhejiang, Guangdong, a number of well-known brands, including home appliances, home appliances, kitchen appliances. And it has entered a substantive negotiation stage. If negotiations are successful, mergers and acquisitions will be completed in the second half of this year.
3 The loss of own brand needs to be vigilant
However, for domestic small household appliance enterprises, although they are acquired by powerful companies, they can obtain a large amount of industrial capital and foreign technology to increase the scale of the company's market. However, it may be the gradual loss of self-owned brands. Some experts pointed out that if domestic household appliance companies do not establish their own technological innovation systems, they only rely on the introduction of capital and the sale of assets to enhance the market sales force. This is inevitably short-sighted; in the long run, it is invisible to their own brands. Kill. “From the acquisition of Pentium by Philips, the value of eliminating competitors is even greater. It is foreseeable that after the acquisition of Pentium, Philips will not use the Pentium brand,†said Lu Jiebo, deputy secretary-general of the China Electronics Chamber of Commerce.
For domestic small household appliance companies, simply focusing on cooperation with foreign capital to introduce capital and trying to do it once and for all may be one-sided. The current priority should be to quickly build up technology research and development, relying on the advantages of a global small home appliance manufacturing center. The perfect background innovation system including product design, etc., forms comprehensive competitiveness in terms of technical standards and product innovation, and comprehensively upgrades the entire industrial chain of raw materials, core components, manufacturing, and services. With this system and technical standards, small household electrical appliance companies in China can truly have the capital to compete with foreign companies, otherwise the others will remain empty talks.
Of course, for the merger and acquisition of the enterprise itself, the brand's desalination and strengthening depends on the development strategy of the company after the merger and acquisition. It is impossible to completely deny foreign mergers and acquisitions because of the dilution of the brand, nor can it be fully endorsed by the promising prospects after the merger and acquisition. Instead, we must respond to the situation. But in any case, it is always a bad thing for the national brand to “collapse in large numbers†and it is worthy of reflection and vigilance from the industry.
In the past, the domestic brands of daily chemicals were swallowed by foreign capitals.
At present, the middle and high-end markets for daily chemical products have been completely dominated by foreign brands, and local brands are weak. Among the top three foreign investment companies, P & G's annual sales in China exceed 20 billion yuan, while Unilever and L'Oreal are both around 10 billion yuan, while most domestic day-to-day companies have sales below 100 million yuan. Such as Shanghai Jahwa, White Cat and Liangmianzhen are rare domestic companies that can compete with multinational companies in all aspects.
While other local brands have chosen to join joint ventures with foreign companies or have been acquired by foreign investors, the acquired brands were subsequently frozen. The state-owned daily chemical companies had almost no exception in this joint venture, giving up brand resources and market resources. Faced with the full reclamation of international cosmetic giants such as Procter & Gamble, Johnson & Johnson, and Unilever, the local daily chemical companies are struggling.
In the past ten years, Procter & Gamble has acquired Langci and Panda; Unilever has won China and the United States and Canada; Henkel acquired Seagull; L'Oreal has acquired the Little Nurse; Baiersdorf has acquired SilkBeauty Chemicals; Dabao has been owned by Johnson & Johnson. As a result of this series of mergers and acquisitions, the daily chemical giants represented by Unilever, P&G, etc. are often the first to raise prices, which in turn drives prices of other related brands.
The lessons learned from domestically-funded brands being swallowed by foreign capital cannot but become a lesson from domestic small household appliance companies.
1 mergers and acquisitions
On July 11, Philips Electronics announced that it had agreed to acquire Pentium Electronics. After completion of confirmatory due diligence and other customary closing conditions, the acquisition is expected to be completed in the fourth quarter of 2011. This is the first official voice of Philips for the acquisition of Pentium, but also following the acquisition of Supor by France’s small appliance giant SEB (Secbo Electric), another foreign giant took over the acquisition of local small household electrical appliance companies.
According to Kong Xianghui, chairman and executive vice president of Philips Greater China, the global headquarters of the company's home care business unit has been relocated to Shanghai to acquire Pentium, which will help expand the product line and accelerate the deployment of the Chinese kitchen appliance market. Hong Shibin, deputy director of the Marketing Committee of the China Household Electrical Appliances Association, told reporters that the acquisition of Pentium Appliances is expected to make up for the shortcomings of Philips in the 3rd and 4th markets and directly increase revenue and market share. According to data from Yikang, the Pentium revenue in 2007 was over 1 billion yuan. From January to April 2011, the market share of Pentium rice cookers was 7.5%, ranking third in China; Induction cookers and electric pressure cookers ranked fourth.
Three days before the official announcement of Philips’ acquisition of Pentium, the SEB controlling shareholder SEB (China Electric) announced that it had received approval from the Chinese Ministry of Commerce and agreed in principle that Supor Group and its founder, Su Zengfu, will transfer approximately 20% of the shares to him. After the completion of the transaction, SEB International will hold 71.31% of the shares, and the Supor Group's shares will fall to 11.76%. Founder Su Zengfu will no longer directly hold company shares. This means that the Su family is stepping out of the company he founded.
Followed by the pace of mergers and acquisitions of Philips, there are domestic enterprises ASD. On July 12, ASD issued an announcement that it agreed to acquire wholly-owned assets related to the small household appliance business of Dongguan BBK Home Appliance Co., Ltd. at a price of 22.88 million yuan from its wholly-owned subsidiary, Zhejiang Aishida Life Appliance Co., Ltd., and seeks to cross the border from the cooker to the small household appliance industry. expansion. Previously, SEB had wanted to acquire a controlling stake in ASD without success and instead bought Supor.
2 Small Home Appliances M&A Will Continue
After more than ten years of development, the large household appliance industry has been relatively stable. Whether it is a foreign-owned brand or a domestic giant, it is not easy to find suitable acquisition targets in the field of color TV and air-ice washing. Relatively speaking, China's small household electrical appliance enterprises have a large number and rapid development, but their scale is not large. They are mainly concentrated in various cities on the eastern coast. The future is bound to have a fierce process of survival of the fittest and reintegration. Therefore, it is more suitable for mergers and acquisitions.
According to the reporter, at present, there are more than 60 electrical appliances in the home appliance chain stores, and if you count the secondary and tertiary markets and some miscellaneous brands, there are no less than hundreds of small appliance brands. The profits of small household appliances are generally 10% higher than those of large household appliances, and the profits of some miscellaneous brands are as high as 50%. For this reason, the small household appliances industry has also been referred to by the industry as "the last profit-making cheese in the home appliance industry."
One of the important reasons why foreign investment can become a big buyer of domestic home appliance companies is that instead of “initiating their own products†to create new products and nurturing markets, it is not as good as “transferring customers†and quickly integrating them into the Chinese market through mergers and acquisitions of local brands. In fact, the success of SEB to Supor also accelerated the pace of mergers and acquisitions by other foreign giants. According to public statistics, Supor's revenue in 2010 was 5.622 billion yuan, and its net profit realized was 405 million yuan. The year-on-year growth in revenue and net profit in the first quarter of this year exceeded 30%.
Italy's home appliance giant DeLong Group recently announced high-profile announcements that it will acquire China's "a group of" domestic appliance brands. It is reported that DeLong has already drawn up a list of mergers and acquisitions, involving Shanghai, Zhejiang, Guangdong, a number of well-known brands, including home appliances, home appliances, kitchen appliances. And it has entered a substantive negotiation stage. If negotiations are successful, mergers and acquisitions will be completed in the second half of this year.
3 The loss of own brand needs to be vigilant
However, for domestic small household appliance enterprises, although they are acquired by powerful companies, they can obtain a large amount of industrial capital and foreign technology to increase the scale of the company's market. However, it may be the gradual loss of self-owned brands. Some experts pointed out that if domestic household appliance companies do not establish their own technological innovation systems, they only rely on the introduction of capital and the sale of assets to enhance the market sales force. This is inevitably short-sighted; in the long run, it is invisible to their own brands. Kill. “From the acquisition of Pentium by Philips, the value of eliminating competitors is even greater. It is foreseeable that after the acquisition of Pentium, Philips will not use the Pentium brand,†said Lu Jiebo, deputy secretary-general of the China Electronics Chamber of Commerce.
For domestic small household appliance companies, simply focusing on cooperation with foreign capital to introduce capital and trying to do it once and for all may be one-sided. The current priority should be to quickly build up technology research and development, relying on the advantages of a global small home appliance manufacturing center. The perfect background innovation system including product design, etc., forms comprehensive competitiveness in terms of technical standards and product innovation, and comprehensively upgrades the entire industrial chain of raw materials, core components, manufacturing, and services. With this system and technical standards, small household electrical appliance companies in China can truly have the capital to compete with foreign companies, otherwise the others will remain empty talks.
Of course, for the merger and acquisition of the enterprise itself, the brand's desalination and strengthening depends on the development strategy of the company after the merger and acquisition. It is impossible to completely deny foreign mergers and acquisitions because of the dilution of the brand, nor can it be fully endorsed by the promising prospects after the merger and acquisition. Instead, we must respond to the situation. But in any case, it is always a bad thing for the national brand to “collapse in large numbers†and it is worthy of reflection and vigilance from the industry.
In the past, the domestic brands of daily chemicals were swallowed by foreign capitals.
At present, the middle and high-end markets for daily chemical products have been completely dominated by foreign brands, and local brands are weak. Among the top three foreign investment companies, P & G's annual sales in China exceed 20 billion yuan, while Unilever and L'Oreal are both around 10 billion yuan, while most domestic day-to-day companies have sales below 100 million yuan. Such as Shanghai Jahwa, White Cat and Liangmianzhen are rare domestic companies that can compete with multinational companies in all aspects.
While other local brands have chosen to join joint ventures with foreign companies or have been acquired by foreign investors, the acquired brands were subsequently frozen. The state-owned daily chemical companies had almost no exception in this joint venture, giving up brand resources and market resources. Faced with the full reclamation of international cosmetic giants such as Procter & Gamble, Johnson & Johnson, and Unilever, the local daily chemical companies are struggling.
In the past ten years, Procter & Gamble has acquired Langci and Panda; Unilever has won China and the United States and Canada; Henkel acquired Seagull; L'Oreal has acquired the Little Nurse; Baiersdorf has acquired SilkBeauty Chemicals; Dabao has been owned by Johnson & Johnson. As a result of this series of mergers and acquisitions, the daily chemical giants represented by Unilever, P&G, etc. are often the first to raise prices, which in turn drives prices of other related brands.
The lessons learned from domestically-funded brands being swallowed by foreign capital cannot but become a lesson from domestic small household appliance companies.
A power cord, line cord, or mains cable is an electrical cable that temporarily connects an appliance to the mains electricity supply via a wall socket or extension cord. The terms are generally used for cables using a power plug to connect to a single-phase alternating current power source at the local line voltage-(generally 100 to 240 volts, depending on the location). The terms power cable, mains lead, flex or kettle lead are also used. A lamp cord (also known as a zip cord) is a light-weight, ungrounded, single-insulated two-wire cord used for small loads such as a table or floor lamp.
Power Cord,Home Appliance Power Cord,Power Cable Cord
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