Bosch, Panasonic water heater is a good thing you left?

In 2006, has been ranked the world’s multinational companies 54 Bosch Group in China’s water heater production base in Shunde, Guangdong, quietly closed, meaning that the Bosch water heater fade out the Chinese market. Bosch water heaters, water heaters, a joint venture in 1995 and Divine, became China’s largest water heater manufacturers. To fade out in China in 2006, Bosch has been operating in China up to 10 a year, but has been unprofitable.

Into 2007, also from China, Japan, Matsushita heaters, gas stoves and other kitchen appliances market exit.

Bosch Group, said although the water heater production base to move to a joint venture between Shanghai and forests, while the Panasonic PR China headquarters said the company before the end of March this year, a worldwide cessation of gas stoves and gas water heaters in the production and sale of a strategic shift.

These two technologies has been the market leader in China’s water heater multinational brands to withdraw from the Chinese market, China’s water heater from the two brands in the market performance, they are helpless in the long term sustainability of China’s water heater industry price war and not do not quit, water heater brands in China as a «beat foreign brands» and cheering when the water heater industry in China we can not see the lack of international capital investment value. Yuhuan production out of China in 1979 the first gas water heater, 1984, China produced the first Divine secure (with flame failure protection) of the gas water heater, then Macro, 10000, and the rise of China to gas water heater industry, once thriving, the most flourishing and more than 500 companies in Western and Asian multinationals such as the German Bosch, AO Smith, United States, Japan, the rate of energy, Matsushita also have to invest.

Multinational investment not only for the water heater industry into the huge Chinese capital, more rigorous quality management is to bring awareness, higher value-added products technology, and rational philosophy. A water heater industry in China about the current high-water heater, you must mention the rate of energy in Japan, Matsushita and forest.

However, gas water heater industry in China has been obsessed market-oriented business model, the gas water heater main businesses are the «price war» for market-driven means of marketing, although the production and sale of products sets the number of rapid rise However, limited by the low sales price and the market impact of soaring raw material continuously, the domestic gas water heater is still a mainstream product in recent years low-tech, high safety factor is not the main water heater flue. According to statistics, China’s market share of sales of water heater flue gas water heaters accounted for 66.8% of total sales. Flue type water heaters are 60 to 70 of the last century’s products, even if the Chinese market leading products at present strong emission water heaters, water heaters, the Divine is the late 80 century, the product can be said that the technical content of gas water heaters in China and sales of the contribution rate is not high.

Domestic gas water heater market, because prices have been falling, the industry profit margins in the industry have been declining rapidly. Most of the current water heater business profit margins less than 5%, or even become negative. The international investment profit financial indicators for at least 20%, the water heater market in China for many years been seen as «areas of low investment value.» Although the consortium in 1995, one of Germany’s top ten Bosch Group and Shenzhou joint venture, a comprehensive investment in China Gas water heater, but low domestic gas water heater market and sustained a loss profit fade.

Foreign brands, and they had a higher delisting price of products, Chinese consumers spent only several hundred dollars to select water heater brands in China, from the national consumer sentiment is a happy thing, but Chinese consumption difficult for consumer products of high quality level, this is not a blessing.

China gas water heater in the field to enter a long-term lack of new capital, in particular, the consortium of international capital to enter, no new access to international capital, the traditional industrial structure adjustment is difficult with large, industry’s overall technological level is low, and the industry Structural adjustment and cross-reference business competition is not based on high technology products and value-driven business, stay in the price war that only low-level of competition, technological level of domestic water heater technology in a closed circle of self can not raise long-term .