In December, the home appliance market will welcome a general round of price increase: it will have little impact on consumers!
Affected by the continuous rise of raw materials, the supply price of home appliances rose or did it not rise?
Looking at the current situation, most small and medium-sized home appliance manufacturers have decisively chosen to increase the supply price for channel businesses. Only a small part of the major manufacturers have chosen not to move. However, this situation will change.
Multiple channels of information sources confirmed to the appliance circle, some home appliance giants have issued a notice in late November, will start in December a phased, sub-model, diversified products for price increases, involving a variety of home appliances black and white categories.
However, since this round of price increase is mainly aimed at increasing the supply price of merchants, it is not to increase the terminal price, so it will not cause any impact on the home appliance retail market. At the same time, a group of home appliance giants will continue to promote the implementation and detonation of the brand day in December, which is expected to ensure the continued stability of the terminal shipments throughout the market.
Appliance prices rise again The next wave of price increases will focus mainly on the current top ten companies in China's home appliance industry.
Compared with previous SMEs directly facing merchants for full-category and full-model price increases, it is different. The price increase of these large enterprises mainly focused on new products, and the merchants' price on new products was significantly higher than the same period of last year.
In the model of red size, the increase will not be too large, the focus is still to hope that the impact of this round of price increases will be handled through structural price increases; and we hope to continue to maintain price advantage in low-end and mid-to-low-end products so as to squeeze small and medium-sized products. Competitors' living space; increase pricing and selling prices on high-end products to form high-end volume.
Insiders of the factory pointed out that “the current round of rising raw materials brings with it an extremely complex internal operation and market competition in the home appliance industry. All companies are facing the same pressure, but the big companies are more resistant to pressure. Internal operations Look, it is best for companies to increase prices and breathe a breath. From the perspective of external competition, if large companies want to take the opportunity to reshuffle, then market price increases will certainly make some small and medium enterprises will be eliminated.
The reality is: since September of this year, the tide of price increases has begun to hit the home appliance industry, first TVs, followed by air conditioners, washing machines, and refrigerators; first, small-scale companies have risen, followed by medium-sized companies; but large companies have been slow. There is no release of price increases in the first-line market. The intention is naturally to hope that this wave of price increases can be used to accelerate the in-depth reshuffle of the home appliance industry.
Pressure is not just raw materials For many home appliance giants, the current business pressure is not just rising raw materials. It also includes internal employee salary increases, and external service workers to increase installation costs, businesses to provide profit space, are urgently needed home appliances companies to improve profitability and profit levels.
As early as September of this year, Gree Air-conditioner directly increased the installation fee for each air-conditioner by 100 yuan. According to Gree's annual sales volume, this alone added at least 2 billion yuan in cost; then Gree announced in November that it would be 70,000 yuan. The monthly salary of multi-employees will increase by 1,000 yuan per person per month, and this alone will increase the annual expenditure by at least 800 million yuan.
Although only Gree has disclosed to the installers the installation fees and news of salary increases for employees, other companies in the household appliance industry are actually facing the common proposition that the employees should receive salary increases and businesses increase profits. This necessarily requires that all companies must seek to improve operating profits.
In the home appliance market in the last two months, household appliance companies experienced a series of terminal promotions such as 10.1 Golden Week detonation, 11.5 brand day and 11.11 e-commerce shopping festival, and the first-line market consumption began to be rapidly activated. This also gave a lot of home appliance giants to promote the structural price increases in the confidence and power at this time, through the promotion of high-end, high-end landing to increase prices.
In early November, LeTV Super TV made a public direct increase in retail prices, triggering a controversy in public opinion. In fact, other traditional color TV giants are also brewing a new round of price increases. Also in the last month, many small and medium-sized white-electricity companies have started to increase merchants' supply prices. After entering late November, the white-water giant represented by Gree expects price increases to begin to appear, and some regions have begun to move.
In the matter of price increases, all current home appliance companies have pressure, power and demand. Only big companies are more resistant to pressure, and not only think of rising prices from the perspective of internal operations, but also must be related to industrial changes from the perspective of external business strategies. As a result, prices for home appliances have risen over the past half-year, and they have been faced with a situation of "windy and heavy rain."
The sudden appearance of the home appliance market in the future, as well as irregularities, and unpredictable external shocks may often occur, even more so than the previous “declining demand and sluggish marketâ€. For all home appliance manufacturers, it means that in the next market operation, we must learn to build a stronger ability to respond to unexpected situations, so as to adapt to external business variability challenges.
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