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Dramatic Changes In Air Conditioning Prices During The 2006 Freeze Years
The air conditioner market has always been the most dazzling in the home appliance market. Many "good plays" in the household electrical appliance industry are often staged in the air conditioning market. Looking back at this year's air conditioning market at the end of the 2006 year of refrigeration, it is still "eye-catching". The most noticeable one is the rise and fall of air conditioning prices. In fact, from the beginning of the 2006 new year, the air conditioner manufacturers began to disclose that the price of the mouth was going up and began to operate. Since the beginning of 2005, the market situation faced by the air conditioner manufacturers is not so ideal, so at the end of 2005, the air-conditioning companies frequently changed their jobs to become the focus of attention of people inside and outside the industry. After several rounds of price wars, few or even the most surviving air-conditioning companies are trying to solve the passive situation of the decline in net profit and try to get rid of the predicament through price increases. However, under the pressure of home appliance chain stores giants such as Gome, Suning, Yongle, Dazhong, Wuxing and so on, to raise prices really needs a reason that everyone can accept and can "take the shots". When it comes to air conditioning products upstream supply chain price rise, people often say "want to drown to send a pillow", when the air conditioning enterprises wait for the opportunity to seek reasonable price reasons, the price of the most used copper materials in the upstream supply chain of air conditioning products, especially the air conditioning products, began to show a "blowout" price increase in 2006, resulting in a substantial increase in the production cost of air-conditioning products. Although this makes the air-conditioning enterprises face new pressures, it also brings a good opportunity to adjust the prices of air-conditioning products. Various air conditioning enterprises have issued a notice of price increase to their dealers, announcing that the retail price of air conditioners is increased by about 100-500 yuan. According to the monitoring data of Sano, GfK and so on, the price of air conditioner products increased by 15-25%, and the manufacturers such as Haier, Kelon, Hisense, Chunlan, CHIGO, GREE, Galanz and so on all sent out price announces, hoping to take advantage of this opportunity to win the hot season of air-conditioning products before and after the golden week of May 1. At that time, almost all of us thought that this year, the price increase of air-conditioning products has become a reality. In particular, when Suning's ninth air conditioning Festival, which was held on 2 million cheap stocks, was declared over, the price of air-conditioning market, which was strongly suppressed, started to rise from the sign price. Haier rose 8%-10%, the United States rose by more than 8%, and other brands had at least 5% increase. The last wave of price adjustment before the peak season seems inevitable. It is difficult to catch up with the household appliances chain: the short-lived air price rise trend, but when the air conditioning enterprises think they are successful and the price of air conditioning products becomes a reality, the price notice issued by the chain stores such as Gome and Suning is not true, because they know that when they are holding large quantities of air-conditioned stocks they have purchased, the real owners of the air conditioning market are not air-conditioned enterprises, but they! Gome, Suning and other home appliance chain store giants began to say "no" to the air conditioner enterprises' behavior of raising prices. "No price increases, manufacturers do not have absolute right to speak." This is Fan Zhijun, CEO of Suning Appliance Management Office in North China. As a result, the rise or fall of air conditioning products has become another battle between air-conditioning companies and home appliance chain giants. After receiving the notice of price rise, Guo Mei decided to keep the air conditioner not going up. As early as in the March, Gome Wong Kwong Yu personally took the lead, and produced 5 billion yuan of cash for a single purchase. In 4 and May, Gome purchased a large number of mainstream air conditioners according to the popular market situation, and the overall procurement accounted for more than 50% of the total market demand this year. Therefore, Gome's response to the notice of air conditioning enterprises' rise in price is that He Yangqing, director of the brand management center of Gome, announced that the 1 million air conditioners hoarded will be put on the market in a high-profile manner. The more than 550 national GOME stores in the national market will be unified to start the "price reduction" war, and on the basis of the existing market retail prices, the whole line will be reduced by 15% to 20%. The air conditioning of Haier will drop by 10%, and the air conditioner in the US will decrease by about 8%. The Chigo Air conditioner will drop 10%, and the Hisense air conditioner will decrease by 10%. In the meantime, Suning organized a "anti price alliance" to fight against it. Hisense, Kelon, Panasonic and Chunlan four brands joined Suning's "anti price alliance". They carried out a 2 week joint promotion campaign in Suning, and made substantial profit giving activities to the best-selling models. For example, the series of air conditioners of the sea series made a profit of 200-500 yuan / Taiwan, Kelon's S3F and VB series hang up machines will subsidize 200 yuan / sets, UG1 series subsidies 150 yuan / sets, VYA and VYB series subsidies 300 yuan / Taiwan, UA1 cabinet machine subsidies 200 yuan / Taiwan, Panasonic and Chunlan adopted the way of letting electricity subsidies for air conditioning subsidies. Who laughs last? Is it a joint performance or a price game? In the collective block of home appliance chain stores, in July, there was a very dramatic scene in the price rising trend of air conditioning products: the marketing bosses of various air conditioning enterprises came together again, but this time they did not announce the price increase, but announced that the air-conditioning products began to depreciate. So the price of air-conditioning products began to fall. Some media reports said that these air conditioning enterprises took another collective action to catch the "last train" in the 06 year of refrigeration. But whatever the reason, all in all, the air conditioning price war of 2006 ended. The last laugh is still the appliance chain giant. Or is it actually a matter of expectation? Despite the end of this year's air conditioning price war, some people have said that this year's air price war is actually a "joint performance" held by air conditioning enterprises and home appliance chains, rather than the price game between the two sides. However, there is at least one phenomenon that can be affirmed, that is, the air conditioning enterprises in China have shown a momentum of "collective combat" this time. In particular, CHIGO, GREE, Galanz and so on were originally called "second-line" brands. Through this collective action, the distance between them and the first-line brands has been greatly reduced. So, what will happen in the 2007 year of freezing? I am afraid it is hard to predict.
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