Analysis Of Strategic Transformation Of Midea In The Internet Era

Home appliance industry is one of the earliest open industries in China.Relying on the rapid expansion of the domestic market,a group of national brands in which Chinese take pride appeared,such as Haier,TCL,Midea,Chang Hong,etc.However,market development will tend to flatten out.With the development of e-commerce,the road of traditional home appliance has encountered unprecedented resistance.Traditional marketing channels can't compete with the emerging online sales channels in terms of operating costs,trading methods and publicity presentations.In this transition,the once brilliant home appliance enterprises reach the depth of despair one after another.Since 2000,a number of poor innovative enterprise which fail to adjust the strategy timely have been acquired in succession due to the poor performance,such as: Kelon,Little Swan,Aucma,Royalstar and so on;And another group of enterprises working to innovate for a way out are in difficult situations: Haier is caught by the mess of diversity,while TCL is daydreaming for going global;Only a small number of enterprise like Lenovo and Midea have developed broader market in the long journey of innovation.China's on-line retail market expanded rapidly with the high-speed growth of the Internet technology since 2012,leading to the change of the consumer's shopping behavior and habits.Therefore,the traditional home appliance retailing industry must adapt to the requirements of The Times development,meet the shopping needs of the new crescent of consumers,and constantly adjust its marketing strategy.And simple to do e-commerce also can not achieve the expected effect,the investment of huge e-commerce did not get a bigger market or income.Lack of knowledge of the Internet,lack of professional talents,lack of Internet operation experience,etc.,all of these factors have caused great obstacles to the development of traditional home appliance enterprises.So the traditional home appliance enterprises should actively use of e-commerce platform,combined with their own advantages and characteristics to transformation and upgrading,continuously explore the transformation of the road,right to maintain sustained and healthy development of the enterprise.In 2015,with the beginning of strategic cooperation between Midea and JD,it marked the transformation of Midea from entity marketing mode to O2 O.This paper focuses on Midea electric group co.,LTD.In the entity marketing mode,some problems encountered by the development of Midea group are reviewed.Facing these existential problems,Midea is not standing still in adversity,but in keeping with The Times and actively exploring new marketing mode--O2 O model.This paper author summarizes the internal and external causes of these problems,and presents a solution for Midea through the offline and offline integration on aspects of supply chain,channel,product,service and logistics.Under the promotion of O2 O marketing model,Midea has achieved fruitful results in 2015 and 2016.At the same time,the transformation of marketing strategy also brings some inspiration and reference to the transformation of other home appliance enterprises.The entity household appliance enterprises cannot transform,otherwise will be eliminated by the market;but also can't just shift to the Internet simply.They need to combine the advantages of offline development for many years,find the entry point,integrate effectively into the online platform,and make strategic planning.In this way,enterprises can develop long-term.