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Prices Of Home Appliances Business Exclaimed: Rome Was Not Built In A Day

Prices Of Home Appliances Business Exclaimed: Rome Was Not Built In A Day

As soon as he heard news

iron ore price rise, "the domestic home appliances to go up 5% of the price," the voice suddenly ceased. Industry have pointed out: Rome was not built in a day.

Steel, petroleum products prices had already been sustained in recent years, China's household electrical appliance enterprises feel the unbearable bear its burden. Meiling Co., Ltd. Market Director Tom forget this proper way to reporters yesterday, a statement: general steel price per ton from 3,000 two years ago, rose to nearly 7,000 now, refrigerator manufactured by the use of special thin steel from 2003 rose to 3,800 yuan per ton at the end of the current 8,000. Not only in the soaring steel refrigerator essential raw materials such as foam-made liquid, liner, plastic and other petroleum products continued strong increases in recent years.

And steadily rising raw material prices buck the trend is that the refrigerator industry average profit margin is now down to about 3%, while the figure in the early nineties of last century has been as high as 20% or 30%. Five Star Market in Anhui Minister Ou Xiaoming in an interview yesterday, said before the sell refrigerators, air conditioners, one can earn more than a dozen, 20 points of profit margin is now basically down to 10 points below the sale of a Taiwan, can only make dozens of dollars or even book the losses, can only expect bigger and wait for the end of the volume manufacturers rebate.

Price Changing Faces Fact, part of the refrigerator, air conditioning companies have explicitly or implicitly in the quietly raise prices.

TCL air conditioner Anhui Guo-Ming Lu regional manager, told reporters yesterday that, in April certainly air conditioning prices rise, because raw materials prices continue to pressure brought to production enterprises have been difficult to re-digest. Although businesses do not want to price increases, but price increases is the general trend. The skin, the hair stand? Guo-Ming Lu quotes this proverb seems to Poxian helpless.

Fact, earlier this year following the announcement of Siemens products across the board in March, after price increases, there are already some manufacturers such as Haier, Yung-Sheng, Meiling so quietly follow-up. Matsushita from the beginning, hook up an average of 200 yuan / sets, Guiji is up 300 yuan / sets, the overall 5% increase in the price. Reporter yesterday from Meiling Co., Ltd., where the parties confirmed that the company already has six types of products recently in a small price increase.

Interestingly, most of home appliance manufacturers are "quietly raise prices." Even as Siemens, as publicly announced price increases across the board, with gains of only 3% to 5%, more modest price increases of the manufacturers quietly raise prices at the same time the chosen silence. Industry sources, even if the prices manufacturers, their way will be very "moderate": Some will use the new products, new models, cancellation of special machines and other forms of dark rose; some will be in the gift to "perpetrating a fraud", the consumer may have inadvertently Obviously, this does not feel.

Manufacturers ingenuity? The face of wave after wave of price increases voice that appliance prices do not really sound the same question the existence of a rebound.

Five Star president and Wang Jianguo of the view that air-conditioning products, raw material costs generally account for only about 35% of sales price. A 1.5 air-conditioning, the market price is usually around 1,500 yuan, steel, plastic, galvanized sheet, copper and other raw material costs only 550 yuan, the other is, R & D, management, advertising and logistics costs. This analysis, up to 50% of all raw materials, raw material costs will reach 800 from top to bottom, although the cost of goods would have been affected, but other manufacturers also can compress the way to ease the cost.

From the current market supply and demand, China air conditioning output at 66 million units, but the air conditioning on demand is only about 30 million units. Have caused the entire industry in 2004 6.5 million air conditioners in the inventory backlog, then air conditioning in hot weather is not up declined. Jian-Guo Wang believes that the situation will continue to repeat itself this year.

Five Star Market Anhui Minister Ou Xiaoming believes that air-conditioning, refrigerator prices by the market and consumers ultimately have the final say. In particular, for the purposes of Hefei, with the five-star, Suning, and giant Carrefour entered, business more competitive. Whether manufacturers or businesses, to consumers dominant overall pattern, or only around the end price competition, forced to compress their profit margins.

Reshuffle Industry generally in an interview that the cry behind the price increase, more importantly, revealed the Chinese appliance market herald a new round of shuffling.

"The current prices are basically sound factory issued. But the voice of the factory, dealers, both herald the beginning of a process of re-shuffling", Anhui Five Star Market, said the Minister Ou Xiaoming , raw material prices direct consequences is that firms reorganizing, production scale, technology, the leading provider of enterprise resource integration can control the costs to deal with raw material prices, and those small-scale, high cost of factory management will be more difficult or even eliminated.

Prices Of Home Appliances Business Exclaimed: Rome Was Not Built In A Day

By: zzj89@foxmail.com
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