Each session of the theme development summit of the consumer electronics industry is characterized by high-standard, large-scale and theme-driven industrial demand, and keynote speeches by leading figures, experts, scholars, and senior government officials from domestic and foreign well-known consumer electronics companies. At the exhibition, Ms. Shao Minmin, vice president of sales and marketing for the US-China region delivered a speech.
Speaking of the US extension, many people may not be familiar with our products. We are selling an extended warranty. The term “extension insurance†is not yet popular in China. I returned to China for about six months. I have been abroad for more than ten years. Just now the host has also said that I am a half Shandong native and I’m a Jiaodong native. I went abroad in the 1990s. I just returned to China last year and I was very excited. I also learned a lot of new words in my country. Today, I learned a lot along with leaders and guests. My speech may not be the same as everyone else. Everyone is talking about smart cities, low-carbon economy, the Internet of Things, and cloud computing that is very popular this year. I think these are all It is a new word for future technology. Today, I would like to use my introduction to allow everyone to know more about the products with extended warranty. I also hope that the “extended coverage†can become a popular word in the second half of the year or next year through my introduction.
When I first got up this morning, I read the news. The headline of the news was "Reporting to the Prime Minister, the housing prices did not hold down, and the pork rose again." It can be seen that after returning home, I felt myself deeply because my head office was In Shanghai, I live in Shanghai. The rise in prices is very severe, and the cost of the manufacturers continues to increase. But now many products have gone high-end, so the cost is getting higher and higher, the price is getting higher and higher, it means less and less profit, because the consumer's ability to accept the price is limited. So the solution that I brought to you today is the one that can help you provide some extra profits. That is to extend the warranty.
Let's look at some of the current problems in the consumer electronics industry. I borrowed a few other people's famous quotes and opened the topic of May Yan.
First, let's talk about competition. In the current situation of economic recession and fierce market, competition has brought many winners and losers. We all know that 2009-2010 was a period of global economic recession, but many domestic friends may not feel the status quo of such an economic recession, but it is true that competition is stressful. In the 1980s, the brand competition was not very obvious, but after the mid-1990s, as many foreign brands opened production factories in China, they brought a lot of foreign capital, and brought in foreign advanced technology, just like domestic production. Brand competition, resulting in very fierce market competition. We look at the electronic brands that were consumed in the 1980s. I don't know how many friends remember “double happiness.†I remember that in the 1970s, the first TV set was black and white, and it was double happiness. The second TV set was bought in the 1980s and was the "Shanghai Card." At that time, our family lived in Shandong, but it was very satisfying to buy a "Shanghai Card" TV. This TV was repaired, repaired, and supplemented. Last year my father used a way to “home appliances to the countryside†for a new brand. He also often told me that there are too many domestic brands and it is very difficult to pick them up. It is better to use a few brands before and everyone knows each other very well. There are indeed many brands in China. According to our understanding, there are about 138 household electrical appliances in China, and many of them are companies of my colleagues here. I am deeply grateful. Because I am from Shandong, I am more welcoming to Haier and Hisense because I feel that their products are, after all, a pride for us in Shandong.
In addition, many foreign brands have gradually flooded into the Chinese market in recent years, so basically 40% of the brands are foreign, 60% are domestic, and competition is fierce. Due to competition, profits will be reduced. The solutions we provide may give you some answers. In the case of rising operating costs, many companies have to reduce profits, make the products more acceptable in the market, and be able to stand up. In the words of Mr. Zhou Zixue, “In 2011, sales of consumer electronics products are good, but there are less profitsâ€, so many manufacturers are more annoyed. This year I will give you the answer.
We can look at the trend of consumer electronics sales from 2009 to 2011 with an upward trend, and from 2011 to 2013 there is still an increase, but it is basically a smooth trend to go further. GfK's CEOs have also analyzed that the trend of consumer electronics in the future is very stable and there will not be much upward trend. At the same time, the prices of many products have to be lowered. In this year, LCD TVs have fallen by 50%, 3G mobile phones have fallen by 17%, and refrigerators are 12%. Many unit prices are falling, causing everyone a pressure on profits.
Another thing to talk about is services. In 2011, many companies must return to the essence of service, that is, how to effectively create customers. In many cases, in addition to the quality of products and constant pursuit of innovation, a relatively complete and nationwide after-sales service network must be established in terms of service quality. This is a problem that is worth exploring. Meiyan itself has a vast service network because we have teamed up with many manufacturers across the country to create a huge network that provides better after-sale protection. As we all know, consumers’ awareness of rights protection has been increasing in recent years. Everyone has experience, especially when the “3.15†time comes, the appeal is quite high. Let's take a look at the number of complaints in June of about 30,000, of which the effective figure is also nearly 30,000, and there are a lot of complaints. Among them, consumer electronics accounted for 10%. I think that if the service is properly handled, complaints will decline and your brand loyalty will increase.
Next, I will provide you with the answer we have for you to solve these problems, that is, "extended guarantees." "Extended warranty" is nothing more than an extension of the warranty, and an additional warranty period based on the inherent warranty. The scope of the warranty is very wide, it can be due to voltage-induced failures, it can guarantee the maintenance of major parts and non-primary parts, and even a new one if it is not repaired. These characteristics are the reason why “extended warranty†products can continue to develop in China. Consumers need such a product to support this service system.
We have cooperated with many distributors and manufacturers throughout the country. Many times we do some “extended warranty†sales on the Internet. Today my colleague, Xin Tian, ​​also participated in the meeting and was very fortunate to work with them. All of them have laid a very good foundation for China's "enjoyment" business. I think after the meeting, we can discuss a good cooperation relationship.
The first is to increase customer loyalty. Your service is good and customers will return to your shop to buy something.
The second is that customers do not lose to other stores. Every time you change a product or change a part, you must go to the same retailer, or to the same manufacturer, the customer retention is very large, and we will also improve the quality of service.
The most important thing is to increase profits for everyone. How can we increase profit margins? I will give you a demonstration later. We will provide manufacturers with better brand loyalty, enhance core competitiveness, and enable you to have a certain share of market share. We are currently working with several well-known Chinese companies and the results are very good. For our consumers, it is the protection of a service.
“Enrollment†is a very mature project in foreign countries. The penetration rate is about 40%. 100 people buy this product, and 40 people will buy “extension insurance†without you guiding. In China, this is still an immature market. In China, the “extended insurance†market is about US$300 million, and in foreign countries it is US$20 billion. The rate of increase and space is very large. This is why the Consumer Electronics Show invites me to come here to talk about the opportunity of this project cooperation. .
I will first introduce the U.S. Warranty Group. Our company's headquarters is in Chicago. The U.S. Warranty Group was established in 1964 and is now 47 years old, almost the same as GfK. We undertake all extended warranty items such as credit cards, accident insurance, and cooperation with manufacturers and distributors. We are not the same place as many “extended insurance†companies, that is, we are the only company that can provide extended warranty for automobiles and consumer goods. In addition to working with many manufacturers of consumer products recently, I will cooperate with more well-known foreign car manufacturers and provide some extended warranty. This space is quite large. Our company is not particularly large, about 5 billion US dollars in the company, but our parent company is the world's top 500 companies, with performance across the world. Our company has branches in 33 countries around the world and has business contacts with more than 50 countries. With offices in Shanghai, Guangzhou, and Beijing in China, our service network can cover 30,000 service points and provide a very large service network for manufacturers and distributors. There are many well-known customers in the world, and everyone is very familiar with these brands. The Chinese team was just formed at the end of 2010. There are a lot of senior industry insiders. We are also constantly looking for new cooperation opportunities in China and hope to share with you after the meeting.
One of our company's customer service centers in Shanghai is open to customers 365 days. We plan to open another customer service center in Beijing by the end of this year or early next year to provide more customers with 365 days of service. The company's core competitiveness is very simple and provides a package of services. Including risk control, product development, marketing, sales, training, many things you do not need to find other companies, because the United States Yan can indeed be able to bear all, this is a feature of our company, is a package of "extended" service providers . In China, we cooperate with many well-known companies. We are also very familiar with the names of these companies. We have been working with them for almost three or four years. Extended warranty is not a strange term in China, but for all of us here today. It may be a little strange, because you mostly come from the manufacturers, many of us are working with distributors. As you can see, there are many manufacturers' names and there are also some Internet sites.
Here are two successful cases to share with you. Just now, we have a large number of well-known companies in China. Among them, a very large retailer is cooperating in 2007, and the amount of money is starting to be 0.18. The proportion of the amount of money is the amount of “expenditure†divided by the amount of hardware sales. Many of my friends know that if they can achieve a percentage of 1% to 1.5% of the amount in the retail industry, the current stage of development is already quite good. What about manufacturers? Almost 1% or more. This customer has so far accounted for more than 1% of its total amount. In less than four years, it has exceeded 1% and the income is considerable. Another company is a manufacturer. When it started to cooperate in 2009, it was a manufacturer. The “expenditure†sales amounted to only 1.4 million. Now look at it. From January to May in 2011, it has reached 5.09 million, the whole year last year. It was 5.46 million. Now it has reached 5.09 million in half a year. This figure is very impressive.
Let us now analyze how the profits of “extended insurance†are generated. Let's make a more interesting demonstration. If your hardware sales are 500 million, the proportion of 1 point will bring you 50 million. This figure is quite impressive. The input is almost zero, because all the investment is on our side. What the most need for manufacturers and retailers to do is to have management execution power. Everyone needs to have the concept of “extended guarantee†to push this product down. Therefore, this product is a win-win solution. It can provide a large service network for retailers and provide a lot of space. For manufacturers, you can increase brand loyalty. This is also the brand that will thrive in the next few years. A new project. I also hope that all of you present here will join us in the creation of an "extended guarantee" business.
Speaking of the US extension, many people may not be familiar with our products. We are selling an extended warranty. The term “extension insurance†is not yet popular in China. I returned to China for about six months. I have been abroad for more than ten years. Just now the host has also said that I am a half Shandong native and I’m a Jiaodong native. I went abroad in the 1990s. I just returned to China last year and I was very excited. I also learned a lot of new words in my country. Today, I learned a lot along with leaders and guests. My speech may not be the same as everyone else. Everyone is talking about smart cities, low-carbon economy, the Internet of Things, and cloud computing that is very popular this year. I think these are all It is a new word for future technology. Today, I would like to use my introduction to allow everyone to know more about the products with extended warranty. I also hope that the “extended coverage†can become a popular word in the second half of the year or next year through my introduction.
When I first got up this morning, I read the news. The headline of the news was "Reporting to the Prime Minister, the housing prices did not hold down, and the pork rose again." It can be seen that after returning home, I felt myself deeply because my head office was In Shanghai, I live in Shanghai. The rise in prices is very severe, and the cost of the manufacturers continues to increase. But now many products have gone high-end, so the cost is getting higher and higher, the price is getting higher and higher, it means less and less profit, because the consumer's ability to accept the price is limited. So the solution that I brought to you today is the one that can help you provide some extra profits. That is to extend the warranty.
Let's look at some of the current problems in the consumer electronics industry. I borrowed a few other people's famous quotes and opened the topic of May Yan.
First, let's talk about competition. In the current situation of economic recession and fierce market, competition has brought many winners and losers. We all know that 2009-2010 was a period of global economic recession, but many domestic friends may not feel the status quo of such an economic recession, but it is true that competition is stressful. In the 1980s, the brand competition was not very obvious, but after the mid-1990s, as many foreign brands opened production factories in China, they brought a lot of foreign capital, and brought in foreign advanced technology, just like domestic production. Brand competition, resulting in very fierce market competition. We look at the electronic brands that were consumed in the 1980s. I don't know how many friends remember “double happiness.†I remember that in the 1970s, the first TV set was black and white, and it was double happiness. The second TV set was bought in the 1980s and was the "Shanghai Card." At that time, our family lived in Shandong, but it was very satisfying to buy a "Shanghai Card" TV. This TV was repaired, repaired, and supplemented. Last year my father used a way to “home appliances to the countryside†for a new brand. He also often told me that there are too many domestic brands and it is very difficult to pick them up. It is better to use a few brands before and everyone knows each other very well. There are indeed many brands in China. According to our understanding, there are about 138 household electrical appliances in China, and many of them are companies of my colleagues here. I am deeply grateful. Because I am from Shandong, I am more welcoming to Haier and Hisense because I feel that their products are, after all, a pride for us in Shandong.
In addition, many foreign brands have gradually flooded into the Chinese market in recent years, so basically 40% of the brands are foreign, 60% are domestic, and competition is fierce. Due to competition, profits will be reduced. The solutions we provide may give you some answers. In the case of rising operating costs, many companies have to reduce profits, make the products more acceptable in the market, and be able to stand up. In the words of Mr. Zhou Zixue, “In 2011, sales of consumer electronics products are good, but there are less profitsâ€, so many manufacturers are more annoyed. This year I will give you the answer.
We can look at the trend of consumer electronics sales from 2009 to 2011 with an upward trend, and from 2011 to 2013 there is still an increase, but it is basically a smooth trend to go further. GfK's CEOs have also analyzed that the trend of consumer electronics in the future is very stable and there will not be much upward trend. At the same time, the prices of many products have to be lowered. In this year, LCD TVs have fallen by 50%, 3G mobile phones have fallen by 17%, and refrigerators are 12%. Many unit prices are falling, causing everyone a pressure on profits.
Another thing to talk about is services. In 2011, many companies must return to the essence of service, that is, how to effectively create customers. In many cases, in addition to the quality of products and constant pursuit of innovation, a relatively complete and nationwide after-sales service network must be established in terms of service quality. This is a problem that is worth exploring. Meiyan itself has a vast service network because we have teamed up with many manufacturers across the country to create a huge network that provides better after-sale protection. As we all know, consumers’ awareness of rights protection has been increasing in recent years. Everyone has experience, especially when the “3.15†time comes, the appeal is quite high. Let's take a look at the number of complaints in June of about 30,000, of which the effective figure is also nearly 30,000, and there are a lot of complaints. Among them, consumer electronics accounted for 10%. I think that if the service is properly handled, complaints will decline and your brand loyalty will increase.
Next, I will provide you with the answer we have for you to solve these problems, that is, "extended guarantees." "Extended warranty" is nothing more than an extension of the warranty, and an additional warranty period based on the inherent warranty. The scope of the warranty is very wide, it can be due to voltage-induced failures, it can guarantee the maintenance of major parts and non-primary parts, and even a new one if it is not repaired. These characteristics are the reason why “extended warranty†products can continue to develop in China. Consumers need such a product to support this service system.
We have cooperated with many distributors and manufacturers throughout the country. Many times we do some “extended warranty†sales on the Internet. Today my colleague, Xin Tian, ​​also participated in the meeting and was very fortunate to work with them. All of them have laid a very good foundation for China's "enjoyment" business. I think after the meeting, we can discuss a good cooperation relationship.
The first is to increase customer loyalty. Your service is good and customers will return to your shop to buy something.
The second is that customers do not lose to other stores. Every time you change a product or change a part, you must go to the same retailer, or to the same manufacturer, the customer retention is very large, and we will also improve the quality of service.
The most important thing is to increase profits for everyone. How can we increase profit margins? I will give you a demonstration later. We will provide manufacturers with better brand loyalty, enhance core competitiveness, and enable you to have a certain share of market share. We are currently working with several well-known Chinese companies and the results are very good. For our consumers, it is the protection of a service.
“Enrollment†is a very mature project in foreign countries. The penetration rate is about 40%. 100 people buy this product, and 40 people will buy “extension insurance†without you guiding. In China, this is still an immature market. In China, the “extended insurance†market is about US$300 million, and in foreign countries it is US$20 billion. The rate of increase and space is very large. This is why the Consumer Electronics Show invites me to come here to talk about the opportunity of this project cooperation. .
I will first introduce the U.S. Warranty Group. Our company's headquarters is in Chicago. The U.S. Warranty Group was established in 1964 and is now 47 years old, almost the same as GfK. We undertake all extended warranty items such as credit cards, accident insurance, and cooperation with manufacturers and distributors. We are not the same place as many “extended insurance†companies, that is, we are the only company that can provide extended warranty for automobiles and consumer goods. In addition to working with many manufacturers of consumer products recently, I will cooperate with more well-known foreign car manufacturers and provide some extended warranty. This space is quite large. Our company is not particularly large, about 5 billion US dollars in the company, but our parent company is the world's top 500 companies, with performance across the world. Our company has branches in 33 countries around the world and has business contacts with more than 50 countries. With offices in Shanghai, Guangzhou, and Beijing in China, our service network can cover 30,000 service points and provide a very large service network for manufacturers and distributors. There are many well-known customers in the world, and everyone is very familiar with these brands. The Chinese team was just formed at the end of 2010. There are a lot of senior industry insiders. We are also constantly looking for new cooperation opportunities in China and hope to share with you after the meeting.
One of our company's customer service centers in Shanghai is open to customers 365 days. We plan to open another customer service center in Beijing by the end of this year or early next year to provide more customers with 365 days of service. The company's core competitiveness is very simple and provides a package of services. Including risk control, product development, marketing, sales, training, many things you do not need to find other companies, because the United States Yan can indeed be able to bear all, this is a feature of our company, is a package of "extended" service providers . In China, we cooperate with many well-known companies. We are also very familiar with the names of these companies. We have been working with them for almost three or four years. Extended warranty is not a strange term in China, but for all of us here today. It may be a little strange, because you mostly come from the manufacturers, many of us are working with distributors. As you can see, there are many manufacturers' names and there are also some Internet sites.
Here are two successful cases to share with you. Just now, we have a large number of well-known companies in China. Among them, a very large retailer is cooperating in 2007, and the amount of money is starting to be 0.18. The proportion of the amount of money is the amount of “expenditure†divided by the amount of hardware sales. Many of my friends know that if they can achieve a percentage of 1% to 1.5% of the amount in the retail industry, the current stage of development is already quite good. What about manufacturers? Almost 1% or more. This customer has so far accounted for more than 1% of its total amount. In less than four years, it has exceeded 1% and the income is considerable. Another company is a manufacturer. When it started to cooperate in 2009, it was a manufacturer. The “expenditure†sales amounted to only 1.4 million. Now look at it. From January to May in 2011, it has reached 5.09 million, the whole year last year. It was 5.46 million. Now it has reached 5.09 million in half a year. This figure is very impressive.
Let us now analyze how the profits of “extended insurance†are generated. Let's make a more interesting demonstration. If your hardware sales are 500 million, the proportion of 1 point will bring you 50 million. This figure is quite impressive. The input is almost zero, because all the investment is on our side. What the most need for manufacturers and retailers to do is to have management execution power. Everyone needs to have the concept of “extended guarantee†to push this product down. Therefore, this product is a win-win solution. It can provide a large service network for retailers and provide a lot of space. For manufacturers, you can increase brand loyalty. This is also the brand that will thrive in the next few years. A new project. I also hope that all of you present here will join us in the creation of an "extended guarantee" business.
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