The vending machine industry market has entered the era of destocking!

From most of the time talking about capacity expansion to most of the time talking about destocking, most of the vending machine industry entrepreneurs who are in the adjustment cycle in 2019 are more anxious. How to survive? Live better? Most people seem to have lost their way. 01 Continued decline and constant anxiety. Director X (pseudonym), the sales director of a vending machine manufacturer in South China, still remembers the days before and after May 2018, because with May 2018 as the boundary, Mr. X has experienced The biggest market'gap' since he was engaged in sales. From continuous growth for several years to a deep decline for more than 16 months, anxiety and confusion have exhausted X. In September of this year, under the pressure of continued high inventory, the vending machine production line of the company where X was headed finally stopped, the production line employees began to take a holiday, and the company's work was also fully shifted to destocking. In order to wait for a customer who bought 50 machines, Mr. X even gave up the vacation plan that he had agreed with his family long ago, hoping for a good result, but in the end Mr. X failed to do so. In fact, regardless of whether it is active or passive, except for a small number of industry manufacturers, most of X's colleagues have already started destocking operations, including price reductions, promotions, leasing, etc., using all means. However, Even so, the customers on the market are still very close, and the orders they can get are constantly decreasing. Anxiety and confusion are almost written on the face of the person in charge of every manufacturing company. 02 The market growth rate is the lowest in five years. Destocking has become the industry's top priority. The reasons for the continuous decline in industry growth are many. Among them, there are capital factors, competition factors, and insufficient innovation factors. However, from the root cause, there is still a problem with the company's judgment of the market's development trend. There is no stable long-term strategy either to the right or to the left, and there is no stable long-term strategy, which ultimately leads to high inventories and crises. According to the latest research materials of the Vending Industry Information and the Unmanned Retail Industry Branch of the Su Food Distribution Association in September, although the overall scale of the domestic vending machine industry market in 2019 has maintained a certain growth, the market growth percentage has appeared for the first time After a deep decline and continue to hover in the negative range, the growth rate is almost the lowest in the past five years. More importantly, inventory is becoming a common phenomenon in industry companies, whether it is a manufacturing company or an operating company. 03 High inventory is becoming the new normal of the industry, and the dangers behind it cannot be ignored. According to the latest estimates of relevant institutions, as of the end of September 2019, the equipment inventory of domestic manufacturing companies and operating companies accounted for about 12%-15% of the current total market inventory , Even higher. It is equivalent to the total sales of equipment in the domestic vending machine market three years ago. This means that both manufacturers and operators, although they have adopted the greatest destocking measures, have not yet played a substantial role, and high inventories have become the new normal in the industry. Affected by the external economic environment factors and the adjustment of the domestic market economy structure, the market downturn in the domestic vending machine industry may continue for some time in the future. In this context, the adverse impact of persistently high inventories on the future development of the industry cannot be underestimated. 1. The risk of capital occupation continues to be high. Inventory occupation of capital, especially working capital, is likely to cause tensions in the capital chain of industry enterprises, which will reduce the enterprise's ability to resist risks and at the same time cause the enterprise to lose its innovative vitality. A company with a fragile capital chain can easily shut down once it encounters an emergency. In the light of this, the vitality of the company will be severely damaged, and in the worst case, it will be closed directly. However, under the circumstances that self-protection is difficult, companies are bound to be unable to invest in new product research and development or to enter new markets, and the innovative vitality of the company is even more impossible to talk about. In the end, it turned into a boiled frog in warm water, and the state of the company was even worse with repeated misses. 2. Product depreciation risk and depreciation risk Due to the rapid development and upgrade of information technology and basic industrial manufacturing technology, the iteration cycle of domestic vending machine products is significantly shortening, and the products in stock are likely to appear in the first half of the year or innovative products, and in the second half of the year. Become obsolete products. Therefore, once the product is in stock, there is a high risk of product depreciation. At the same time, the longer the equipment is stored, the higher the risk of depreciation due to the aging of electronic components. 3. Increase in inventory management costs. Due to the increase in inventory products, companies need to invest more in inventory management. Whether it is site, personnel or other supporting facilities, the increase in inventory costs is almost inevitable. 4. Increase in clearance costs To reduce inventory, companies need to increase sales and market expenses, and when necessary, they need to deal with discounts. The corresponding clearance costs are also a huge burden for companies, especially in the case of high inventory. .