The price of LCD TV market experts say is an overdraft in the future

Price has been considered an inevitable law of competition in household appliance industry, TV industry is even more so. This is the eleven LCD TV price war in the golden week of unprecedented fierce, large screen LCD TV to the past a venerable gesture, broken million, breaking the 6000 yuan offensive continued, partly due to the years 7 generation production line, large screen LCD panel to reduce production costs, and more is always business competitive strategy. In the face of a fight at outrance cannibalism, TV will really get what they want?

Has been a lesson

Since 1985, the color TV industry to form a climate, has been hit for 15 consecutive years without the loss of the entire industry miracle, and it is the price war in 2000, so that the color TV industry, the flag of the national industry broke the vitality. Thus triggered a series of bankruptcy and mergers and acquisitions, many famous brand names have disappeared, the formation of the basic pattern of China's color TV industry today.

Price war, may increase the market, but it is a loss of profit

It is understood that this year 1-9 month sales of LCD TV market grew by 80%, but the LCD panel manufacturers in the two or three quarter, but a loss. The first half of 1 million 160 thousand color TV sets and sales of various types of Xoceco, representing an increase of 22.1%, achieved sales revenue of 2 billion 393 million yuan, but net profit was only 15 million 70 thousand yuan; and Hisense first half of the company's main business income of 4 billion 465 million yuan, net profit of only 33 million 870 thousand yuan. According to the published data, two companies profit margins of only 6/1000 to 8/1000. Recently, the SASAC once again issued a warning, 47 electronic industry state-owned key enterprises in August further losses of $280 million.

Whether it is low quality and cheap to repeat the same mistakes?

High quality and high priced products are easy to see, but the low price products are often packaged sounding. It is reported that the use of the seventh generation LCD screen of the product is mostly in the distance of 32 inches in the price of about $32, the LCD TV is the lowest of 6999 times the value of two yuan. Most of the performance of the following products are following the mainstream of the 7 generation LCD screen LCD TV products have a big gap. There is also a wide range of nearly ten thousand yuan on the market for the sixth generation LCD screen of the product of 32 inches, although it is also a substantial price cuts but not cheap.

The only means of competition? Are there any other options?

Compared with the 2000 price war, the price is still the main means of TV industry business promotion, the only difference is the focus of most TV companies is no longer recommended by ordinary machines, but plasma, LCD TV and other high-tech products. Through price factors to stimulate market consumption, seems to have become the core means of competition, during the holiday season is mainly driven by the popularity of this, to promote the purchase. This is the lack of most of the domestic color TV core technology related, can not get out of the product can only use the price trump card, although it is a double-edged sword.

Simple low price strategy is equal to the fall of the Dynasty

It has been predicted that after two years of elimination of three, the domestic LCD TV manufacturers will only survive 4-5 home. Guangzhou army attack plan strategy director Liu Buchen pointed out that this year, flat-panel TV manufacturers in the future overdraft overdraft tomorrow likely price space, for manufacturers, more in the market price through the enclosure, but not actually achieve profitability. The price of fighting, often leading to the enterprises a year has sold millions of TV sets but only earned a processing fee.

After the TV era, soft power is the key

And the early, extensive mode of growth is different, after the TV era, when entering the buyer's market, the gradual rise of consumers have been more emphasis on performance, health, culture and other soft power. Talent and R & D capability as the core of the soft power will be the focus of future competition. Do not care about the lowest price, who mastered the updated technology to meet the growing needs of consumers, who will take the initiative in the future market competition.

More competitive strategy, more profit space

Through technological progress, to reduce the cost of the product and price is a primary means of competition, it is not only the winning magic weapon, but should not develop into the original capital regardless of the price war. For such products, LCD TV, can do with panel, chip is good this core technology, but most manufacturers did not accumulate such technology, but in appearance, workmanship, technical interfaces, especially software or do. Through the penetration of the concept of corporate culture, the establishment of raw materials, manufacturing, logistics, marketing to the integration of the operation mode to meet the needs of different consumers. The competition focus on meet the needs of the consumers, rather than simply reduce the price, in order to build a stable consumer groups and consumer awareness, to complete the enterprise long-term accumulation of capital and technology, to achieve sustainable competitiveness. The consumer is definitely not a simple price, the market does not necessarily have to fight at outrance, more competitive strategy, more profit space.