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Appliance Prices Choice: Court Death Than To Die Were Killed?

by dpdp

posted in Business : Ethics

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Up and not up is a game,

Home Appliances Enterprises that choose? Some companies have chosen to "killed", then what does?

Beginning of the year so far, the voice appliance prices after another, especially

White Prices was evident. But domestic

Air conditioning Giant Hisense , Kelon's air-conditioning has Quedui contrarian price cuts, to the "Voice of prices," a brutally blow.

Experiences the "three high" have to rise?

Chinese home appliance industry this year, do

face multiple disadvantage, especially at the "three-high."

First, the accelerating appreciation of the renminbi, export profits to be compressed. The first three quarters of this year rose by 4.2 percentage points, a point of appreciation of the yuan each, the profits of export enterprises will be decreased from last year to now, due to revaluation of profits at least lead to an overall reduction in household appliances export a few points of profit. Expected appreciation of the RMB will continue to maintain a rapid growth momentum, high household appliances did not export profits will be further compressed.

Second, raw material prices. With steel, plastic, copper, wrapping paper and other raw material prices, increased production cost appliances. According to statistics, the average cost of household appliances this year, up 15%.

Third, labor costs rise. With the implementation of the new labor law, labor costs of enterprises will have no small magnitude of the rise, which further increased the cost pressure air conditioning business.

In addition, by the U.S. subprime mortgage crisis, I had a home appliance industry, the decline in exports, while the cost and rising. From these view, home appliance prices brewing seems in reason, not up, face tremendous pressure to live is to die.

If prices do, but also the face of strong downstream appliance retailers, and consumers, whether they recognized it by? It will not be court death?

Home appliance chain stabilize prices? Home appliance manufacturers in the enormous cost pressure may reach an agreement, choose to respond to price increases the cost of the crisis. However, this year, home appliance retailers, but "fell out" of, it touches on joint check prices.

With air conditioning, for example, States United States

Suning The two largest home appliance retailers have unanimously committed to maintain the prices do not rise this year, air-conditioning. Increased costs for air conditioning, mainly through the large single procurement policy to be eased, to ensure consumers are not buying the hand up against lower prices.

2008 3 12 Gome and Haier, Midea, Hisense, Panasonic and Mitsubishi air conditioner enterprises signed 16 air-conditioned 18.6 billion purchase agreement. Suning is not far behind, but also through cash purchases and the way of big purchases, the price for air conditioning control.

Course, the home appliance chain giant standing opposition to home appliance business, first in order to meet consumer demand, the second is the game for competition between merchants.

And from that point of view, is not it really will not be home appliances prices out? Is not true, after all, is the fact that production costs there, if not up so it not really dead. Household electrical appliance enterprises disguised price increases, mainly through upgrades, but perhaps not much; or improve production processes, reduce administrative costs, "internalized" way to resolve.

Some analysts believe that the voices rise up and not just a two-man show everything!

Court death than to die were killed?

Rise up and not a problem, "court death than to die strong", some even choose to "killed", then what then?

The case in the face of high costs, leading enterprises have the leading home appliance technology, brand, market size, with strong bargaining power and risk transfer capacity, not easily afraid of "court death" of.

About the Author:

I am a professional writer from China Manufacturers, which contains a great deal of information about tourmaline hair dryers , hair dryer conair, welcome to visit!

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