The Channel Reform And Management Of Midea Household Appliances Company

During the past ten years, the format and competition pattern of China’s home appliance have basically formed after the fierce competition among the local home appliance manufacturers. Now, this industry has stepped up on a mature stage.Because of the increased competition of the industry and the oppression from home appliance hypermarkets,the home appliance industry has entered a period of making tiny profit. Those manufactures once got a high speed of developing have already slowed down and even stopped their steps. Then the problems of running the business especially in the field of marketing channel management emerged. How to make the reasonable channel mode, how to optimize the channel structure and how to strengthen the control and motivation of channel dealers became the common topic facing all the manufactures.Midea Group, as the global leading manufacturer of white goods, has experienced the high speed development of more than ten years thanks to its divisional system, three-level channel mode and its investment to its agents. However, when the market became more mature, the weakness of current channel became more obvious, which could be the main factor that would block the development of Midea. In this paper, the author analyzed the marketing channel of China’s home appliance and Midea by listing some basic concepts, summarized the current marketing channel problems and raised the target of channel reform such as setting up joint companies and shorten of the channel. And the author also raised up specific measures of channel management.Finally, the author pointed out that to build manufacturers’ integration would be the strategic choice of all the manufacturers.