The heat of summer has ignited consumers' enthusiasm for purchasing home appliances, especially home air conditioners. The price war for color TVs continues, and home air conditioners are not lagging behind either. The two giants Meditech and Geli are competing against each other.
Meidi, a strategic partner of Jianan Supermarket Group and Lingjiang Electrical Appliance Chain Group, is naturally involved in the air conditioner price war. As a result, in addition to the wailing of small and medium-sized color TV manufacturing companies, there are a number of domestic small and medium-sized household air conditioners in the market.
manufacturer.
Previously, it was believed that some companies' control of market prices was harmful to the interests of the country and ordinary people. But after the tragic price war occurred, what was shown was not necessarily good.
There are too many home appliance manufacturers in China, and the management technology and operating costs of these factories are uneven. In addition, the popularity of these brands is far from that of Kangjia, Medi, Changhong, Chuangwei, TCL, Little Swan, Haier, and Ge.
On par with other big brands.
This time, manufacturers only pursue low profits to expand the market. Coupled with the efforts of channel dealers, the market for small and medium-sized home appliances brands has declined rapidly. Their popularity is not as good as that of big brands, and their price advantages are not as good as those of big brands. Normal-thinking consumers
People will buy big brand home appliances instead of choosing them.
As the price war for home appliances continues, local governments are facing greater pressure. They have to consider the next development issues of the home appliance companies under their management. If the current situation is not improved, these companies will go bankrupt.
middle.
It’s not that the government is reluctant to part with these enterprises, the main problem is the placement of tens of thousands or even hundreds of thousands of employees in these enterprises, which is definitely a huge burden for the local government’s finances.
Yuzhou Radio Factory and Jinque Color TV, this well-known brand among Yuzhou citizens, have gradually withdrawn from the sight of Yuzhou citizens in recent years. The Yuzhou color TV market has become dominated by Changhong, Kangjia, and TCL.
In the past, Jinque Color TV was able to barely maintain its operation with relatively low prices and the sentiments of Yuzhou citizens. What they did not expect was that a price storm suddenly struck, and the last advantage of Jinque Color TV was wiped out.
In the first half of June, not to mention increasing orders, even those who had previously signed orders with channel providers also received a large number of unsubscriptions.
Faced with this situation, the senior management of the wireless factory and all employees of the Jinque Color TV Production Department were filled with a dark cloud. If the situation could not be reversed quickly, the Jinque Color TV Production Department could only announce a suspension of production, and thousands of workers would temporarily suspend operations.
It was a huge blow to the radio factory.
In the conference room of the radio factory, the senior managers in the factory were all frowning and quite pessimistic. None of the senior managers were optimistic about the future development of Jinque Color TV.
The Jinque color TV, which was once the most profitable project in the factory and made countless people in the factory proud, has now become the biggest burden in the factory.
The technology is backward and the cost is high, which makes them think of no way to make Jinque color TV survive this tide.
The radio factory is not alone in facing this situation. Their brother unit, the Hongyan TV production department of Yuzhou Radio No. 3 Factory, is also facing the same problem as Jinque Color TV.
Yuzhou Washing Machine Factory, Yuzhou Refrigerator Factory, Rongcheng Radio Factory Rongcheng brand TV, Rongcheng Engine Company Shuangyan brand refrigerator, etc.? These once well-known home appliance brands in the province are facing the possibility of imminent discontinuation of production.
The Yuzhou and Rongcheng municipal governments attach great importance to this? There are so many companies, but the jobs of tens of thousands of workers are at stake? If it cannot be properly solved? It will be a huge blow to their finances. Will there be problems when these employees are laid off? No layoffs
, if the government comes to support it, it will be a drag on local economic development.
Is this home appliance war not only squeezing the market for foreign brands? It is also squeezing the market for domestic small and medium-sized brands? After these major home appliance giants monopolize the market, it is estimated that this war will stop.
In the future, except for these big brand giants, small and medium-sized brands will not be able to make any splash in the domestic market.
Is this home appliance price war an accelerator to eliminate these companies? No one will stop at this time? Profits can be ignored, and seizing the market is the most important goal at present.
This is true for both home appliance manufacturers and channel sellers. This time, not only domestic home appliance retail giants are involved, but foreign retail giants such as Wal-Mart, Carrefour, Ito-Yokado, and Metro are also taking advantage of this home appliance price war to expand rapidly.
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Is this an era of chaotic business wars? Is this an era of the rise of giants? It is also an era in which many small and medium-sized enterprises disappear, and it is also an era in which many state-owned enterprises with little technical content repeat construction and blindly expand and go bankrupt.
Is it also because of this home appliance price war? It has made the already problematic problem of laid-off workers even more severe.
There are thousands of home appliance manufacturing companies across the country, with millions of employees in this industry? The current situation is that the giants take all, except for a few dozen companies that can occupy a place in this industry? More companies are more
The only option is to close down.
Isn’t it just a few years ago? The retail giants are no longer limited to one city or one place? The sales network spans many provinces. With their assistance, the products of the home appliance giants can be sold everywhere quickly, which also prevents the manufacturing industries in various places from enjoying the benefits they once had.
Territorial protection.
The upper management has also seen the problems here, but now there are two different opinions. One is to follow the laws of market development. Since these enterprises cannot adapt to market development, they should be eliminated.
The second is for the government to intervene to cool down the home appliance price war and leave some room for development for small and medium-sized manufacturers.
I don’t know if the home appliance manufacturing giants have received any news. In order to further expand their brands’ market share, they have contacted their partners and offered summer special prices again.
It is only provided to channel dealers at an ex-factory price slightly higher than the cost. In order to further attack competitors, these channel dealers only maintain a profit of 5% to 10% for sales, causing the price of the entire home appliance market to drop significantly again.
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Lingjiang Electrical Appliance Chain Group's stores in important cities such as Shanghai, Lin'an, Suzhou, Yongcheng, Ludao, and Rongcheng are accelerating renovation.
In Sichuan and Sichuan Province, in addition to the rapid expansion of Huarun, giants such as Wal-Mart, Carrefour, Ito-Yokado, Yonghui, and Watsons have entered the market with high profile, and their stores are also being renovated at an accelerated pace.
In East China, retail giants such as Guomei, Zhongbai, Hongqi Chain, New Four Seasons, and New World have also entered this fierce retail competition.
In this era when commercial laws are not yet perfect, these companies are engaged in the most brutal battles, with price wars and promotion wars emerging one after another.
This is also the most tragic era for small and medium-sized enterprises. In this era of giants taking all, most of them will disappear silently in the long river of history. A few decades later, except for the older generation, only the documentary records will still exist.
With so little trace of its existence, no one in the younger generation will remember that there was such a glorious enterprise in this province and city.
The two price wars last year and this year also prompted the upper levels to consider a special law to ensure the normal order of the market, give those companies with development potential a space to develop, and prevent the domestic market from becoming a special event for giants.