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    On The Battlefield Of Price, Small And Medium-Sized Enterprises Are More Difficult To Survive.

    2009/2/23 0:00:00 10227

    Price War

    Fujian Xinhua Plaza shopping mall is the most popular shopping center in Quanzhou. The reporter saw that the big brands were selling at a reduced price, the price cut was between 30% and 50%, and the price of shoes and clothing products dropped by about 50%. Anta, Jordan, 361, del Hui, PEAK, XTEP and other sports shoes leading enterprises have joined the price war. Affected by the financial crisis, many large enterprises have already lowered their retail prices in order to maintain market share. How will SMEs break through when they lose their price advantage? Recently, in Fuzhou, some supermarkets and stores have seen many large enterprises doing product promotion activities. Fujian Xinhua Plaza shopping mall is the most popular shopping center in Quanzhou. The reporter saw that the big brands were selling at a reduced price, the price cut was between 30% and 50%, and the price of shoes and clothing products dropped by about 50%. Anta, Jordan, 361, del Hui, PEAK, XTEP and other sports shoes leading enterprises have joined the price war. Reporters at Anta store saw that a pair of 2008 popular sports shoes retail price of 385 yuan, less than 200 yuan after the discount will be able to buy. Chen Xiangyang, a classmate from Huaqiao University, told reporters: "before these brand products were priced at about 20 percent off, this year the discount is higher, reaching 50 percent off. Some outdated styles, even with 2 discount, can be bought by tens of dollars. This price can only buy some products of small and medium-sized enterprises before. In the city of Jinjiang, Fujian, the "08 strong storm" merchandise sales activities are in full swing: thousands of square meters of exhibition area are filled with clothing, such as jacket, suit, shirt, T-shirt and a series of products, which are sold at almost ninety percent off prices. It costs only 30-50 yuan for a jacket. According to internal staff, the peak exhibition area receives millions of yuan per day. In order to deal with the current severe economic situation, apart from Li Lang, nine famous brands such as nine shepherd kings, seven wolf wolves, rich birds, PEAK, XTEP and so on have launched various preferential promotional activities in different degrees, and price war has become the main competitive means of brand enterprises. The sales director of a brand enterprise told reporters: "the product of promotion is basically a backlog of inventory products of the enterprise over the past year. If not handled in time, it will occupy the operating capital of the enterprise. Although promotional prices are relatively low, they can recover huge amounts of money in a short time. " We will cut down on the terminal sales market, and manufacturers will deal with the products at a low price, and the biggest consumers will be the consumers. But for market operators, it is a big blow. Lin Zhenshun, Quanzhou Baoshang Road clothing wholesale market, told reporters: "wholesale markets are all low-grade clothing. The wholesale object is the first class retail market in Fujian province. In the past, business was very good near the new year's day, and dozens of goods were sent to dozens of places every day. This year, the retail stores in Quanzhou district have been greatly affected, and one or two pieces of goods a day are pretty good. There are so many brands of shoes and clothing enterprises in Quanzhou, and a series of sales promotion activities attract more and more consumers. The price of these enterprises is lower than the cost price of small and medium enterprises. If this goes on for a long time, the market will be eaten by "big fish". Xiao Nan, editor in chief
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