The Development Research Analysis Of Small Electrical Appliance Industry

The small appliances industry in China now is facing a dual dilemma - a challenge and an opportunity. On one side, with the increased income in general, the Chinese households are demanding a better lifestyle, which boost the demand for more small appliances. This is an opportunity to the industry. However, on the other side of the coin, with the increased cost pressure from global raw material trends, labor cost, and Chinese Yuan (CNY or RMB) appreciation, the small appliances factories almost are facing the business profit hardship.At the same time, facing the global trends and pressure of fighting for environmental sustainability, in order to reduce pollution and save energy, the investments and adventure in this area to create "green products" further escalate the competition among factories and change the landscape of the industry. Under this critical moment of dual dilemma and scare of resources, how to level up the competitiveness and choose the right profit-centered differentiation strategies become the key study points for many companies.Based on Value Chain and Smile Curve, this article uses Taiwan based Tssan Kuan (in Xiamen) as the example to study and conclude how they operate the integration model, while at the same time analyzing TK's failure from the production standpoint after the technical know-how in this industry become more matured across the board, and provide the suggestions to TK at the current stage.Finally, based on our research results, we will provide suggestions about the future directions for the small appliances industry.