Interview with Market Director of Germany and Italy: Crisis Change Machine Product Differentiation Shows Strength

The financial crisis in August 2008 was like a major storm that swept all walks of life. Kitchen and bathroom industries were also affected. However, as one of the largest and most modern kitchenware production bases in the country, the top three in the industry and the kitchen utensils of Germany, Italy and Italy still maintain a positive trend and develop rapidly. Recently, on the issue of how to face up against the market, Shanghai Tuangou.com interviewed Tu Yi, Director of Marketing of Deyi Kitchenware Co., Ltd. The following is an interview record.

[Reporter]: Hello, Master Tu, I'm glad you can accept our interview. First, let's briefly review the history of Germany and Italy in the kitchen business.

[Director of Tu]: The period of introduction of the German-Italian brand dates back to 97 years. Germany and Italy were the first to make gas cookers. It was at the time that the stoves were transitioning to the embedded gas stoves. In the development of gas stoves, Germany and Italy seized the opportunity to upgrade their products and produce embedded gas stoves. Then gradually extended from this area, has been extended to the range hood, disinfection cabinet, 03,04 began producing sinks, faucets, began to build cabinets in 2002, the entire product line is centered around the kitchen. From 1997 to now, during many years of development, it has been sticking to the field of kitchen products. From the initial stage of brand establishment, we have always paid attention to product features and the advantages of product differentiation, emphasizing the value of classics, and have always been committed to providing consumers with unique products with classic values.

[Reporter]: The financial crisis is a problem that has to be discussed. Do you not know whether Germany and Italy have been affected by the financial crisis?

[Director Tu]: The beginning of the financial crisis in August 2008 really had a certain impact on the environment. We all know that the financial crisis has caused great fluctuations in the real estate industry, and the kitchen appliance industry is closely related to the real estate industry. There are new homes to buy, there will be renovations, there will be the purchase of kitchen appliances, decoration, the impact of the economic crisis, we believe that is mainly reflected in the market, the crisis caused consumer confidence, resulting in reduced demand, thereby affecting the entire industry Sales situation. However, for Germany and Italy, we have not been affected much. The entire moral concept is in an ascending stage. At such a stage, we consider not to compete with others but to compete with ourselves. In our view, the market share of Germany and Italy still has a large space for development. Competitors are not factors that we need to consider. We follow our plan for steady development.

[Reporter]: What does Germany and Italy expect from the market situation in the second half of the year and what marketing actions are there?

[Director Tu]: After the Spring Festival this year, real estate began to show signs of recovery and entered the stage where prices and prices rose. It began to enter a stage where prices and demand are both stable. We believe that compared to the second half of last year, the second half of this year will be It is a predictable period of steady growth in sales.

Last year's "11" peak season was not prosperous, leading the industry to realize that the crisis was coming. But in fact the duration of this crisis is not very long. Starting in March of this year, sales resumed fairly quickly. Since last October, the entire industry has adopted a conservative attitude to minimize the impact of the crisis. Our idea is just the opposite. This is not impulsive, but comes from our judgment of the market. Under such market conditions, we have adopted a positive attitude. Since the beginning of 2009, we have taken enhanced measures in terms of brand promotion, product development, business structure adjustment, and promotion. It should be said that the market's result is satisfactory. In particular, the market performance that began in March this year reflects the forward-lookingness and accuracy of our initiatives. In the second half of the year, market trends may have to undergo some changes, even with rapid recovery. For Germany and Italy, we will take a more positive approach.

[Reporter]: Just mentioned the product development. Which new products will be launched this year?

[Director Tu]: This year's product plan will be a qualitative change in the history of our product brand development. Mainly reflected in two aspects.

The first is the breakthrough in the core technology of our products. The gas stoves we will launch in September will have the technical advantages that will make us a leading technology in Chinese-style home cooking appliances.

The combustion system we have developed will provide a qualitative leap for the improvement of combustion efficiency, convenience for cleanliness, and ease of use. After the listing in September, the entire gas stove technology platform will be transformed. In fact, before this, some domestic companies also tried to do this, but we did not think it was thorough. Now we have done it.

The new gas stove introduced by us brings not only an increase in the combustion efficiency, but also a great help for the improvement of the entire domestic home. Now that the density of cabinets is getting better, the requirements for cookers are getting higher and higher. The stove needs air circulation. The better the density of the cabinet is, the worse the air circulation will be, resulting in a hazard to the stability and safety of the combustion. Therefore, many companies adopt a hole in the table or reserve a hole in the cabinet to improve this problem. However, we have completely solved this problem. The combustion system will supplement the air from the surface of the burner.

Secondly, we have also launched some product categories that cater to high-end home kitchen renovations, such as embedded ovens and microwave ovens. The introduction of these products is not only the high end of these categories, but the positioning of high-end technologies, designs, and processes on these products. And has a relatively advantageous technology. These products are expected to be listed in October this year.

Extending the product line and focusing on technology research and development, product breakthrough is one of the core factors that support the growth of Germany and Italy in such an environment.

[Reporter]: So Tu Tu, can you sum up the characteristics of Germany and Italy products?

[Director Tu]: In fact, in terms of products, we have been emphasizing the differentiated advantages of our products. This is our product strategy that we have always insisted on. We all know that markets tend to fall into price wars when comparable products are flooded. This is what we try to avoid. Vicious competition often brings about a decrease in quality.

At the same time, consumers' satisfaction with their products is constantly changing. Kitchen appliances are no longer just functional products. Of course, functional requirements are a prerequisite. Consumers have more non-functional requirements for them, including design, craftsmanship, style, color, additional functions, and convenience of use... ...

In terms of product R&D, functional design positioning is a basic requirement. Beautiful design and craftsmanship have become a higher level direction, and we must also pay attention to harmony. Now, the kitchen needs to integrate with the home atmosphere. We believe that customers like more value than simple product features.
In terms of product design, we emphasize the originality of design, emphasizing the integration with home atmosphere to satisfy consumers' aesthetic demands. For example, when we introduce near-suction range hoods, consumers will find that changes in the structure will bring about changes in appearance, and will be more fashionable, and at the same time, it will have more advantages in terms of functionality.

Product differentiation will increase consumer acceptance. Just like the gas stove just talked about, the decoration of the kitchen is getting more and more upscale, and the hermeticity of the cabinet is getting better and better. How to guarantee the functional function of the product lies in the upgrading of the product, ie upgrading. Emphasize the difference of products, that is, our Germany and Italy's product advantages. Our hood has a slogan "Deyi Xintian Arc China near-suction hood". It should be said that we have indeed confirmed this statement with practical actions.

[Reporter]: For consumers, after-sales service and product quality are equally important. How does Germany and Italy ensure that our after-sales service is smooth?

[Director of Tu]: After-sales service that ordinary consumers understand is the maintenance and quality assurance of the product. And our understanding of service in Germany and Italy is that service is the guarantee of people's experience in using the product.

Consumers buy products for their use value. Buying gas stoves is a function of cooking and heating. Buying a deal is not the end of sales.

This process of after-sales service is not only about the maintenance of the product itself, but a continuous process of sales. We think Germany regards service as such a link. Services do not completely center on products, but do it on the basis of consumers, timeliness, service quality, influence on consumers, and so on. The service we understand is not limited to product protection. The product guarantee depends not only on the service, but also on the product itself, product quality, design, craftsmanship, materials, etc., and the service itself is the satisfaction of the human experience. It is based on this that consumers are quite satisfied with the services of Germany and Italy.

[Reporter]: Did not see Germany and Italy in the field of online group buying in previous years. Recently, Germany and Germany seem to have been slowly involved in this area. What is our understanding and planning of Germany and Italy?

[Director Tu]: A careful analysis of consumer behavior will find that consumers must go to the store to buy something. This forms a habit and convention. With the changes in the environment, especially the changes in the network, in some developed regions, especially in developed coastal regions, the Internet has become a source of consumption information, and knowledge and experience have come from the Internet. The development of online sales has a lot to do with social structure and human behavior. The more developed the economy, the higher the level of people’s communication and the greater the dependence on the network. More and more people will collect information from the Internet before they consume. The diversity of human behavior leads to the diversity of sales behavior, and the diversity of sales behavior leads to the diversity of pathways. We believe that the network has great development prospects or super development prospects.

However, online sales are still in a stage of development or trial. The purchasing nature of the network itself is still being explored. It is undeniable that through the Internet platform, tracking of consumer behavior, this sales model is undoubtedly a great development prospect. Traditionally, consumers have to go to the mall to buy, to see, someone must come face to face to get information. The emergence of the Internet--the platform for providing massive information makes consumers take the initiative to obtain information, and is more comprehensive access to corporate information. The online group purchase brings about an innovation in consumer behavior. We are looking for a professional network platform to gradually explore this area.

[Reporter]: Thank you very much for accepting our interview. Thank you.

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