Foreign repeatedly frustrated, "ocean home will be" going to leave it? – Foreign investment, foreign brands – HC Network Appliance Industry
Recently active in the appliance on the market a lot of foreign brands of negative reports, first called "foreign
Air conditioning
"Overall sales fell in 2005, many brands do not complete the schedule; then Sony
Digital Cameras
Were tested failed, triggering consumer crisis of confidence in foreign brands; the Spring Festival, with Sony, Sharp,
Matsushita
,
Samsung
,
LG
Philips, Hitachi,
Toshiba
As the representative of the foreign brands, a strategy to change the past, stable prices, the first to set off wave of price cuts triggered a price war in consumer electronics market in the spring.
Repeatedly frustrated foreign brands make media talking about a time "full range of domestic products with foreign brands face of the defeat," "price war for Japanese TV Jingxian precursor mass was lost and" endless argument seems to make people feel appliances foreign brands in the Chinese market is already a dead end. However, is this really the case?
a doubt: the size of Heroes?
Some say that the Japanese color TV, air conditioning as the representative of the foreign household appliances in China, small-scale, high manufacturing costs, profits fall. Household electrical appliance enterprises in China rapidly expanded, greatly improved the competitiveness of the case, the Japanese home appliance brand in decline, much has been replaced by the trend of Chinese enterprises.
Scale enterprise development is one of the important goals to pursue, but also reduce costs, an important bargaining chip to compete with competitors, so that many regard the large-scale enterprises, including media, regarded as a primary development strategy for household appliances.
In fact, the simple to the size of the success or failure is not scientific. At present, China's home appliance market is a typical consumer pyramid. That is, the minority advocating the top brand, and stress the high fashion consumer groups; the middle part of the emphasis on the brand while stressing both affordable general consumer groups; the bottom is the price of the brand less demanding Quedui absolute value of the low end consumer groups, they occupied the largest proportion.
Resolution:
Foreign brands in China's strategy is to pyramid to the top of the high consumption group lock for the service group.
Their production and management is not the size of the pursuit, but the quality of the shape of the brand and culture. China's home appliance market in the history of the development, we easily find the size of foreign brands with high consumer groups always correspond to the size, therefore, and in recent years, the scale of China's household electrical appliance enterprises rapid growth compared to the scale of foreign brands has always been a slow growth situation is not difficult to understand.
doubt 2: Price level battle of the war?
Price war in the market competition is not the China market be a private secret book, but interpreted in the Chinese market the most vividly. For durable goods such as appliances, the price often is the development of consumer-level to recruit.
Use in the market price war there are two cases, one is cheap to develop the market. Data show that, for air-conditioning, refrigerator, color TV so consumer durables, a decrease of one price for each level will be a corresponding increase in number of consumer groups. Therefore, many manufacturers are formulating a development strategy, often trying to lower the price to get larger market share, thus taking the favorable situation.
Other is when the technology with new products, whether foreign companies will use any monopoly to reap high profits. For example, in the planned economy period, the core technology of color TV are basically controlled by Japan-based brand in the hands of foreign capital. When domestic enterprises through purchase of production lines and technology, and emerged to
Changhong
Represented by a large number of TV brand, price cuts and other foreign brands on the use of means of production to gradually withdraw from the sales of rear projection television, and even fought in the field of flat-panel TVs, new technologies continue to enjoy high profits.
Resolution:
Flat panel TV from around the Spring Festival, the renewed wave of price cuts of view, foreign brands are a collective price reduction on the latter.
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