Domestic Appliances Hutchison overseas merger and acquisition industry integration unanimously

After many years, the new round of integration of China's home appliance industry set off another upsurge. Unlike the previous integration, which focused on the domestic market, this round of integration directly aimed at the deep integration of overseas markets.

Following the acquisition of Carrier’s Egyptian subsidiary Miraco in 2010, Midea announced on August 5 that it would spend US$223.3 million to acquire 51% of UTC’s subsidiary Carrier Air-Conditioning Air Conditioning Company to occupy the air-conditioning market in Brazil, Argentina and Chile. Coincidentally. On July 28, Haier signed a memorandum with Sanyo Electric, the former will acquire the latter's washing machines, refrigerators and other home appliances businesses in Japan, Indonesia, Malaysia, the Philippines and Vietnam.

This round of companies based on the integration of overseas markets in the end is what forces are driven? The major companies started this round of integration is in the end "to adapt to the era of home appliance giant" trend or forced by "risk of raw material labor costs" operating pressure? As time goes by, the answer becomes clearer.

Hutchison’s overseas integration accelerated. China’s home appliance companies, Duo Xiong’s and Haier’s, no longer care about the top spot in the domestic appliance industry, but instead focused on the global leader in white electricity.

In contrast to previous appliance companies that used "product exports" to snatch foreign business opportunities, after more than 20 years of development and accumulation, Chinese home appliance companies have already explored the three-stage theory of "going out, going in and going up." This time, Haier spent 10 billion yen for about 128.3 million U.S. dollars to purchase Sanyo Electric's home appliance business in addition to the Chinese market, which is considered to be the transformation of Chinese home appliance internationalization from the brand mentoring period to the local operating period.

Since last year, Midea has successively purchased shares of Carrier Corporation in countries such as Egypt, Brazil, Chile and Argentina, which not only realizes the maximization of the benefits of industrial mergers and acquisitions and the integration of enterprises, but also gives U.S. great development in the global air-conditioning industry. Foreshadowing."

Informed sources told the "China Enterprise News" reporter, "Since 2008, the United States and Carrier Group Asia have formed a joint venture, and last year began the United States with Carrier's platform to achieve localized operation in overseas markets, which means that both sides have established a stable Cooperation relationship and business reputation, with the rise of China's global air conditioning industry in the future, the United States will not rule out more carriers in the global scope of the HVAC business, and ultimately for the United States to become a solid third in the world to lay a solid basis."

From the same year, Midea acquired Little Swan, Rongshida and Hisense acquired Kelon and Rongsheng, and began to integrate multi-enterprise mergers and acquisitions for many years. At present, Midea, Haier and other companies revolve around overseas mergers and acquisitions to initiate new integration within the company's internal organizational structure and business processes. . Although the integration of this round of cross-border mergers and acquisitions is more difficult, it began to make the brand of Chinese household appliances begin to affect the global market.

Changes in integration under globalization At present, the “Matthew Effect” of the Chinese home appliance industry continues to intensify, and the “community under multi-category” combat model is gradually giving birth to the competition pattern of giants in the home appliance industry, which also enhances the competitiveness of Chinese home appliances globally. Peng Yi, director of research and marketing at Zhongkang Market, told the China Enterprise News reporter that from the perspective of the history of the group's operations of Samsung, Panasonic, LG, and Bo Xi, the all-round mixed champion has become the mainstream trend of the home appliance industry in the future. ”

The new round of integration initiated oversea mergers and acquisitions, but it boils down to internal corporate governance and structural integration, responding to corporate globalization. Since mid-2009, Midea Refrigeration Appliances Group has restructured its marketing divisions of its three major business divisions: air conditioners, refrigerators, and washing machines. It has entered the matrix management system on the basis of its business division and has established a horizontal marketing headquarters in China. In June this year, a reporter from the China Enterprise News learned that Midea’s transformation of its marketing headquarters into a business headquarters marked the integration of the marketing platform as a breakthrough, and began to integrate and transform the business platform supported by the organizational structure and management model. As a result, the dual docking of the two platforms from the client to the supplier under the market-based competition mechanism is realized.

Feng Hongjiang, a visiting professor at Zhejiang Wanli University who has long studied corporate strategy, pointed out that “the current integration of home appliances industry has many forms, especially with the diversified expansion of the home appliance industry, many companies will establish a unified marketing platform and technology for different product lines. Innovation platform. It should be noted that at this stage, the integration of the company is not a simple integration of marketing platforms, and it is not a superposition of marketing personnel and promotional resources, which can achieve the purpose of layoffs and cost reduction.”

The key to determining the success or failure of home appliance integration in the future is to establish a comprehensive support structure that matches the integration of organizational structure, management tools, corporate culture, scientific and technological strength, resource system, and service security. Home appliance observer Hong Shibin emphasized that “as in the past few years, home appliance companies have sneaked around and scaled up, they must have corresponding market distribution system support. Some household electrical appliance companies have achieved phase success through product line expansion and integration. Thanks to the perfect system of technological innovation and brand promotion.”

In the face of the international mergers and acquisitions and restructuring of the home appliance industry, it is extremely urgent to build a supporting system for internal management and organizational structure of home appliance companies.

The new breakthroughs under the internal and external scrutiny combined with the home appliance industry's transformation from single combat operations to group operations, build a more robust platform competition system, and achieve intensive cultivation of various industries in the global market through “group diversification and industrial specialization”. Become inevitable.

It is through the gradual integration of external mergers and acquisitions, internal integration, and marketing integration into organizational structures. This has led to the explosive growth of M&A integration of many companies, and has also allowed many companies to “diversify” and “specialize.” "The balance between operations" has been found. It is reported that around the year 2000, Midea Group made small companies through large companies and set up business divisions based on products. After dividing a rope into several shares, it quickly gained the maximum for each product of the company through management and market differentiation. Expansion. Right now, it is inevitable to build a strong business platform to promote the systematic growth of the company. The United States immediately chose to redevelop the ropes that have grown from the roots of the stocks.

Hong Shibin pointed out that “the original big companies made small achievements today's beauty, and today the integration of large companies will build the future of the new US.” The path of integration of the United States shows that integration can not be blind, can not be impetuous, can not pursue short-term utilitarian and performance, It is necessary to establish the system competitiveness of “internally and externally”.