DIY industry suffered decline in the inflection point market can win

Whether it is a computer enthusiast or not, many people may have the experience of “winging down” in the electronics market. When DIY (self-assembled computer) was the most prosperous, Zeng Xiong blew up half of the Chinese PC market. However, with the rising market share of branded machines and notebooks, coupled with the impact of wireless Internet mobile terminals in the past two years, the DIY industry is now difficult to achieve its former glory. However, at the first DIY industry development summit forum co-organized by Zhongguancun Online and Sina Technology recently, more than 200 industry insiders from well-known companies such as Microsoft, Intel, AMD, Jingdong Mall and Asustek Computer still showed strong interest in the DIY industry. The DIY market is far from being “awesome”. In the future, DIY should take the path of personalization and develop both high-end and rural markets.

The upside is still optimistic. A few years ago, the profit of a DIY business person selling a computer was between 300 and 500 yuan, and it is now down to 30 to 50 yuan. The survey shows that in 2010, the activity of the manufacturers and their confidence declined for the first time, and the sign of the industry turning point has become apparent. For the current situation, DIY parts, accessories, compatible manufacturers and channel manufacturers in the DIY industry are at a loss.

However, in the eyes of many senior professionals, there is still room for growth in DIY, mainly because China has a deep market hinterland. They believe that the primary market is now becoming saturated, but the secondary market is gradually maturing, and the three-to-four markets also have low-end desktops. According to the survey, the penetration rate of rural PCs is currently less than 10%, and there is great room for development.

Zhongguancun Online General Manager Yu Dongxue is a firm bullish of the DIY industry. He said: "In any industry, there are opportunities for survival and development. Private enterprises in China are becoming increasingly important in the entire DIY industry. Private enterprises with manufacturing, research and development, brands, capital, and core technologies will become the main force for the future. And front runners."

In Zhongguancun Online's product library, there are currently 776 enterprises engaged in DIY industry, and 54.8% of domestic brands account for more than half of the entire industry. The DIY industry has been dominated by the earliest international brands and has become a domestic company. Yu Xuedong did a survey: Among the manufacturers engaged in DIY, listed companies accounted for 18.8%. He said: "Ramblers, Sanou, these DIY manufacturers, have learned to use the capital market bigger and stronger. When more of the advantages of resources concentrated in domestic enterprises, the value of the entire DIY industry will be discovered."

Zhang Wenhao, general manager of Intel China's market and channel, also likes the DIY market. She analyzed that in mature markets, the share of notebooks is very high. For example, notebooks in the United States and Japan account for about 80% of the total number of personal computers, and desktops only account for 20%. However, in China, the unit price of desktop computers is about 30% lower than that of notebooks, which is contrary to the situation in mature markets in the United States and Japan. Therefore, desktops still have a large market in China.

Zhang Jianzhong, vice president of NVIDIA, believes that opportunities in the DIY market will focus on the continuous upgrading of game users, the latest purchases of technology users, the application of digital enthusiasts, home appliances to the countryside and multi-card graphics solutions. He said that in China, branded machines can only cover half of the market, and the amount of users of high-end graphics cards has doubled every year, indicating that Chinese users have a strong demand for technology applications, and the DIY industry still has a strong vitality.

Dividing the Market to Win Gigabyte is a well-known company in the DIY industry. Its motherboard sales have always been “the first tier.” Regarding how to deal with the new challenges of the DIY industry, Chen Yingzhou, head of the Graphics Marketing Department of Gigabyte China, said that Gigabyte’s new strategic plan is to continue to focus on the mainboard business while expanding the graphics card and other markets to subdivide the products.

According to the survey, desktop computers with a price of more than 5,000 yuan accounted for 20% of the total market share in 2008, and dropped to about 3% last year. This year, sales of desktop computers with a price over 5,000 yuan rose slightly. Zhang Wenxuan analyzed that the high-end market has not grown or even shrunk. This is exactly the opportunity for the DIY industry. She believes that the DIY of the server is a very good opportunity, and many SMEs are increasingly demanding servers.

Wei Qing of Microsoft also said that the DIY industry has shifted from the low-end to the high-end trend. No matter if it is quantitative or qualitative, it needs to go a step further. He said that the base of the Chinese market is too large and the market must be subdivided. The blurring of home appliance and computer boundaries, the ambiguity of the study and office, and the living room computer make DIY products more personal. Whether it is a game product or an online product, DIY must give a clear answer.

Xie Mingjie, vice president of Asustek Computer's global motherboard division, believes that a major opportunity for DIY is the development of the entertainment market. "If the DIY computing power is faster, the capacity is bigger, and the image is better than the average branded machine, it will usher in a wave of development climax. It can be foreseen that, starting next year, the game will increase at more than 10 points, and Many parts of the game are on the PC. DIY companies must seize this growth band."

How does the mentality of manufacturers determine how to make the DIY industry go further?

Qishan Rainbow, general manager of the company emphasized that the largest industries need to take the lead from upstream manufacturers. In the next three to five years, the mentality of DIY upstream manufacturers will determine the rise and fall of the industry; manufacturers need to continuously develop new products and share the results with the channels.

Jingdong Mall chairman Liu Qiang Dong believes that the flat channel is the fundamental way out for DIY development. “The reason that DIY profits are too low is that there is no real channel flattening. A notebook needs to be transferred several times to reach end users. Half of it does not create value.” He suggested that only if there is no steal configuration, brand change, earning In order to gain the trust of the users, the profits will be huge.

Many DIY brand manufacturers have begun to brewing "channel down" and expand more three to five markets. Sun Wuyuan, general manager of the Business Group, said that in the primary market, many users do not know the real specific needs, which requires the guidance of DIY manufacturers, and accurately understand and tap user needs, so as to expand the larger market.