January 09, 2025

Is home appliance extension service a genuine or profitable product?

With the fierce competition in the market environment, in terms of the home appliance retail industry, companies have shifted from competition in products, technology, and brand to full-scale competitions such as home appliance retailing and home appliance services. As the starting point for connecting consumer demand and the new profit growth point in the new retail era, after-sales service is also the company's scramble for buying.

At this time, in the home appliance commodity service, the extended warranty service based on the continuation of repairs after the “three guarantees” period has also taken off. For example, in order to deepen its after-sales service system, Amazon China has reached a strategic cooperation with An Xinlong, the global industry-leading extended warranty service provider, and launched "Medical Security" extended warranty services tailored for Chinese users. It is understood that this extended warranty service has introduced a number of extended warranty products and covers nearly 400 electrical subdivision categories including mobile phones, computers, digital cameras, kitchen appliances, and home appliances on the Amazon China platform. According to different product categories, the main types include "Extended warranty service", "Only maintenance service", "Accident protection service", "Scattered screen security service" and "Extended warranty + fault warranty service" and other major types. Extended warranty products. Consumers can purchase extended warranty products and services of different types and ages according to individual needs.

In addition, as the leading home appliance and consumer electronics retail chain in China, Gome also deepens the service market for home appliances by accelerating the distribution of home appliance extension services and other industries. According to consumer's common problems in the use of home appliances and other commodities, Gome also customizes different extended warranty products according to different product categories. Similar to Amazon's extended warranty products, Gome’s extended warranty service for home appliances also includes “mobile phone broken screensavers” for mobile phones, “replacement extensions” for non-3C electrical products within 1,000 yuan, and digital products. , notebook "surprised insurance" and so on. At the same time, in order to improve the user experience, Gome's extended warranty service also provides consumers with a 24-hour response to ensure that consumers receive feedback within 24 hours after the repair.

With the increasing intelligence rate of home appliances, many home appliances have a high degree of integration. When a product malfunctions, finding a small problem can be a little complicated and costly to operate. Therefore, such as the emergence of television in one year Hardware failures can only be changed or not repaired, and some kitchen and bathroom brands have also won praises from some consumers for their non-repair service. Just as in May of this year, Microsoft officially released a new generation of SurfaceLaptop notebooks in New York. According to a well-known dismantling giant iFixit, scores of 0 on the dismantling assessment of this product indicate that this is a notebook that is the most difficult to disassemble. In the case of destroying critical components, it cannot be disassembled completely, and it cannot be restored, so once it fails, it cannot be repaired.

In terms of time, the extended warranty period is generally from one year to three years. According to the time, the cost of its services is also different. In general, the one-year extension fee will usually not exceed 8% of the product price, and three years The extended warranty service fees are more favorable, and some extended warranty services can also be purchased within a certain period of time after purchase. However, as a value-added service launched by the promotion, is the extended warranty service a gimmick or a genuine service product? When salespersons sell "enjoyed" services to consumers, they are often conscious of whether the practice of "extended warranty" and Sanbao is merely to earn more room for profit.

It is understood that "Three Guarantees" mainly refers to the goods or services provided by the operators of goods or services that do not meet the quality requirements. Consumers may, in accordance with state regulations and the parties concerned, require the business operators to fulfill the obligation of return, exchange or repair. When consumers accept “extended warranty” services, they are mainly those who enjoy goods or services outside the “three guarantees” period and are provided by “extended warranty” service providers to extend their warranty time, rather than extending their services. "Three Guarantees" content. At the same time, people in the industry pointed out that "maintenance package" mainly means that during the "three guarantees" period, manufacturers provide completely free maintenance services, and most of the extended warranty services are value-added services that merchants offer for sales promotion. Manufacturers provide free maintenance within a certain period of time. And maintenance services, but to collect the cost of the required parts.

In general, the extended warranty period of most home appliance manufacturers is within one to three years after the normal warranty period of the home appliance, but the possibility of appliance failure at this time is not high. For small household appliances that have a faster update rate, the price will not be too high, and consumers will choose to repurchase one unit after 1-3 years of use. In addition, many operators often tell consumers “free installation” when they sell household electrical appliances. However, in the actual installation process, there are behaviors such as increasing the number of installations and increasing the cost of installation materials. Even more, many repair-only services are subject to geographical restrictions. The reason is that the “extended warranty” service purchased by the operator “does not require maintenance at a designated repair station and the expense is not reimbursed” becomes a Zhang's "blank cheque" came to an end.

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