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Ecstasy or reason? War perspective appliance prices

2016/6/8 14:23:56 274


Stumble down, down constantly.

A reporter recently visited the market, to embed mounted in the cabinet in the oven, microwave, dishwasher and other relatively high-end kitchen appliances, the recent price significantly decline. It is part of the business reports, with the peak of home decoration, major brands competing for market share have lowered prices. Some of the original built-in oven on a million, now promotional price of just seven thousand dollars.

Similarly, large-screen TV prices recently sustained decline trend. It is understood that, with the new models onto the market in the spring, on a number of flat-panel TV prices around the end of last year, the market began to loosen. Reporters in an interview that the current domestic brands specifications 103 cm flat-panel TV market price has drop into less than 2,000 yuan, foreign brands are slightly more expensive, but substantially less than 2200 yuan.

In the recently held 2016 refrigerator Summit, Cai Ying, deputy director of the State Information Center, Information Resources Development Department also introduced, the overall average price of domestic refrigerators but also a downward trend. He speculated that, "overall price decline, both technological upgrading and cost control factors, but also reflects the intensity of competition in the industry. Enterprises in order to maintain market share, price is an important initiative to engage in promotional refrigerator reason the overall average price decline."

Indeed, China's home appliance market is currently in the overall downward phase, in the short term, a clear case of not bounce signals through the most intuitive low prices to win customers, clearly effective faster. As has been "torn open" Gome, Jingdong, Suning, Ali, "parity" has become 618 electricity supplier war "tradition" for electronic business platform itself, it is a symbol of low-cost platform strength. For users, the price is to attract them to buy goods driving force.

It is said that the retail price is a reflection of the enterprise's core competitiveness. Regular price promotions, in the home appliance industry is a normal metabolism, consumers can benefit from another look at the industry level, some of the relatively low productivity of the enterprise will be out of the price war in the process.

Some also say that simply is not sustainable profit sharing, can not change the pattern of the industry. Conversely under market economy conditions, if a significant reduction in prices, the market will damage the normal order of business, leading to malicious competition among enterprises, and ultimately undermine the stable development of the whole industry.

We can not assert that falling prices will not be an obstacle to development of the industry, but we can be sure, the market relying on business model innovation to bring consumers lower value added, such as, nowadays free hardware implementation model in white areas . The next innovation will appear in what direction? Service? Financial? Ecological? We'll see!

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