Research On The Channel Strategy Of Bossi Appliance Network

In the era of planned economy, all of the programs and plans had to report to central government. The durable goods such as fridge and wash machine were produced according to the pre-defined plan and supplied by central government, therefore all the products were not market driven. After Reform and Opening up, the country’s economy and consumptive level are increasing, and the durable goods are coming into people’s home. Supported by government policy, Chinese home appliance market has grown 14% each year from 2008 to 2011. However, due to the economic crisis, the market had decreased 7% in 2012. With the government policy and low base, the market then rebounded to increase 18.8% in 2013. From the forecast of AVC consultant company report, the home appliance market will continually increase, but only 3% in 2014 due to advance overdraft of police. The demands mainly come from product upgrade in tier 1&2 cities, first-time purchase in tier 3&4 market, and new requirement of new house, e.g. marriage.Along with the Internet booming up, domestic consumers started to buy goods online. After 2005, there has been home appliance B2C business on Taobao.com from 2005, and actually consumers didn’t notice until JD.com sold home appliance in 2011. Next Suning and Gome also joined home appliance e-commerce in 2012. Suning promoted home appliance online and competed with JD.com, and Taobao also set home appliance promotion month to grab the market share, each home appliance manufacture has made great effort on building up own online platform. November is normally supposed to be off-season, but the "11.11" from Tmall had simulated market over again. BSH opened Siemens flagship in 2012 and Bosch flagship in March of 2014. Haier, Coocaa and Hisense had more than RMB 100 million sales on Tmall only on 2013.11.11. Haier sold 120,000 PCs online and earned RMB 20 million. Siemens had RMB 85.2 million sales on that day.After the background and theory review, this paper has demonstrated the external environment:home appliance industry, online channel, and online home appliance sales. Next the paper has analyzed the internal environment, including brief introduction of BSH, online channel model and Tmall flagship shop. I have also benchmarked with competitors. And then I have used SWOT to analyze the strength, weakness, opportunity and threat, therefore gave some strategic proposals to online channel of BSH.