Puppy appliance business model interpretation of the future of home appliance market

IT168 News Premier Li Keqiang proposed the concept of “Internet Plus,” and installed an “accelerator” for the Internet to penetrate into the real economy. Taking the home appliance industry as an example, many innovative "cases" have emerged in the past two years: Home appliance company Haier has launched a "custom" platform for online interaction among users, attracting users' needs and accelerating innovation in the hatchery industry; Hisense, TCL, Skyworth, Konka, etc. Tencent, Ali and other Internet companies have cooperated to develop smart terminal services and turned to rely on service content to make money.

After many home appliance brands “touched the net”, they grabbed the “eyeball” of the industry and users. The puppy electrical appliance that recently submitted a public transfer to the New Third Board was originally formed by the Internet e-commerce model. In the vacuum cleaner's overall industry development maturity and relatively low industrial concentration, the internal “spirit of the Internet” of the enterprise was adopted. Innovative thinking has created a differentiated development path.

The reporter found that the dog electrical revolution book found that in the past two years, the company's revenue and profit data achieved a high-speed "continuous increase." Under the background of the slowdown in the average growth rate of the home appliance industry, the electric appliance sales of the puppy have been gaining momentum with strong sales, and they have also buzzed the door of the capital market. Behind it, what kind of business logic is there?

Product side: "One" is all

At present, there are as many as hundreds of vacuum cleaner brands sold on major e-commerce platforms, and the product price range ranges from more than 80 yuan to more than 10,000 yuan. However, among these hundreds of brands, one appears to be “alternative”. Compared to other companies of the same size, this company only vacuum cleaner products. This is puppy electronics.

In this age of the "Internet" who is keen to do an ecological system and expand with almost crazy features, everything is alarming. No matter how awkward and tempting the external environment is, the puppy chose to focus on the field of vacuum cleaners for 17 years.

Tan Chong is the founder of this company and has the image of "businessmen". He does not deny that he is a Virgo “natural and clean”. Talking about the product strategy of puppy electronics, Tan Chong said: Although vacuum cleaners are small household appliances, they have a history of more than 100 years. After 17 years of vacuum cleaner discovery, there were too many "famous hallucinations" inside. It was really not easy to make a vacuum cleaner. "My character is more pursuing perfection, and I want to achieve this thing in my heart."

Immerse yourself in the vacuum cleaner world and constantly polish your "claw." In 17 years, the puppies have quietly grown into "the king of the vacuum cleaners": they have won the "throne" of the vacuum cleaner category online sales line for six consecutive years.

"One is more, this is the corporate culture of puppy electronics," an executive with a puppy electrical told reporters. The culprit will be the ultimate vacuum cleaner products, puppy electronics may overlook too much of the scenery, but made a lot of real gains.

Service side: homes are

When it comes to dog electrical appliances, it is even more "sticky". It is China's first to launch a central maintenance service with the innovative characteristics of the Internet. This has also been praised by the industry and users in the past two years.

Puppy Electric set up a unified central maintenance warehouse in Beijing and took the lead in signing a "reverse logistics" cooperation agreement with SF Express. Whether it is product quality problems or improper use of the user caused damage, as long as the product can not be used during the warranty period, puppy electrical equipment is responsible for maintenance, replacement parts, and the entire maintenance process is free of charge, and even back and forth courier fees are all borne, this is Puppy appliance central maintenance service.

Using the Internet's real-time data and vertical and horizontal express networks throughout the country, from the time the user initiates a post-sales application to completion, the puppy's average after-sales cycle takes only 5 days, while the industry's average cycle takes 15 days.

In the two years since the introduction of the central maintenance service, it has not caused malicious repairs by users. Instead, it has reduced the repair rate of puppy electrical products to the lowest level in the industry. The reason is because this action subverts the logic and mechanism of after-sales service in the traditional home appliance industry.

At the same time, central maintenance has formed a mechanism to force companies to improve their quality. If the quality of the product is poor, it will bear the cost of repairing all the products. This forms an internal pressure to improve the quality. At the same time, the centralized free maintenance during the warranty period can quickly and comprehensively understand the potential quality problems of the product, and further promote the improvement of product quality. .

Tan Chong said that over the years, the overall quality of service in the traditional home appliance industry has not changed much. Many years of free maintenance and three-bag services have mostly been in the form of propaganda. Many companies often lay tens of thousands of maintenance outlets across the country. Over time, they can only develop maintenance points into business models, forming a negative mechanism for making money from maintenance. User maintenance is difficult, maintenance costs are not transparent and costs are high. As an internet brand, Doug Electric profoundly recognized the industry's “worse” and launched innovative practices such as “Central Maintenance”, “Reverse Logistics” and “All Explained Rights are owned by Users”, which completely solved the user’s worries.

Client: less is more

The puppy electrician mentioned a small detail of the central maintenance service. After each machine was repaired, the maintenance engineer cleaned it and waxed the surface of the machine. Puppies use imported wax, and the texture is the same as that of the factory. Sometimes opening the box, the user is not accustomed to it for a time, thinking that replacing a new machine.

The senior keeper of the dog's electrical appliance, said: "In the era of Internet, although e-commerce cannot face to face, we have 100 opportunities to contact with users. When users search for products on the Internet, browse reviews, see our graphic posts, open the package Box, even when talking to others... We are in touch with the user, maybe you have a bad tone on the phone and you lose an old customer, so we ask ourselves not to miss every opportunity to contact with the user , Let users get a satisfactory experience in every step."

Regardless of the “obsession” at the product end, or the subversive innovation of the service model, there is the same logic behind it: that is, fine management. The purpose of fine management is not to sell products, but the true quality. Only perseverance can win the trust of users.

At present, the popularity of vacuum cleaners in China is still very low. While living in the rising period of this industry, it is not necessary to “seek for greatness and perfection”. Instead, it really takes root in the industry, seizes a group of loyal customers, and uses products in them. The value of life in the production of greater, this is the user's business logic puppy electrical. The senior keeper of the dog's electrical appliance, Pei Yinnong, said, "Less is more, when a user can determine the electrical appliance of a puppy for 35 years, our product will realize value on you. When he is 60 or 70 years old, It is also possible to use puppy electrical products, which means that the brand of my puppy electrical appliance was implemented on him."

Look to the future: always be fearful

It has been nearly two months since the puppy electronics submitted a new three-board revolution. When it comes to choosing the new three boards to be listed at this time, Tan Chong said that the main reason is that the company’s management is interested in the advantages of the new three board registration system. By applying for the listing of the new three boards, it seeks to realize the company’s standardized operations as soon as possible and open up access to the capital market.

It is worth mentioning that, with many Internet brands frequently absorbing PE, VC and other wind investment before the listing of different capital, puppy electrical revolution book shows that puppy electrical appliances before the round of listing, actually achieve "zero financing." This means that in the Internet industry where the “burning money model” is prominent in the media, puppy electronics has completely relied on its own efficient management to realize the rapid accumulation of raw capital and supported itself through an efficient capital cycle. Rapid growth and development. Summarized in a sentence is to rely entirely on endogenous development, starting from scratch and becoming the “industry giant” in the field of domestic vacuum cleaners.

According to industry insiders, both the previous "zero financing" and the new three boards of this time, all show that puppies' electric appliances "have a plan for the future". To describe it in one word is to "fear it." Because of the fear of the user, only the central maintenance after-sales service that subverts the industry's "hidden rules" and praises the users. In the same way, the puppy electronics that first involved in the “capital market” still have a fear for the future development: Respect the origin of market economy capital and lay a solid foundation for the future development of the company.

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Nantong Boxin Electronic Technology Co., Ltd. , https://www.ntbosen.com