Tuesday, November 30, 2010

[Zhejiang] Wenzhou "foreign home appliances" left civilians routes

Recently, has been positioning high-end, high prices of foreign brands in home appliances, TVs, washing machines and refrigerators product represents a price war.

Individual foreign brands sales prices even far lower than the comparable price of the domestic brands of household appliances, electrical household appliances has always been the preference of foreign brands of Wenzhou consumers chuckle.

In Wenzhou home appliances market, a price war has long been a domestic brand seize market's main weapon, originally foreign brands are basically "squabble", the domestic brands and foreign brands, foreign brands always maintained in the low-end and high-end area his own battle mode, has always been "well not guilty of the river".

Wenzhou consumers have also formed a fixed price leverage: "foreign brand appliances prices higher than one-third of the made in China, good stuff is not cheap. ”

But now this lever is out.

In the brand's competitive mid-range door refrigerator camp, Samsung, LG has a special promotion, but is not limited, retail price $ remained in 5000-6000 Yuan, while the domestic brands of Hisense, best rongsheng promotional products, retail price $ in 6000-7000 Yuan, up to $ 1000 full. In addition, in the Middle more door refrigerator, Haier, LG, Samsung several best-selling product prices are $ 6000-7000, the difference between the two is almost negligible.

In addition to the refrigerator, foreign brands in other products also frequently resorted to price cuts ruthless strokes.

32 inch LCD TV, Sony launched the beginning of the limited special offer $ 2990 until now; Philips, LG also has a retail price of $ special LCD 2690. The 32 inch LCD of domestic brands, retail price $ 2500 are basically in the up and down, the gap between a few hundred dollars only in between. In the washing machine, Sanyo, Samsung and Panasonic have one or two paragraph on special promotions, drum-type washing machines price, minimum price has been reduced to below $ 3000, substantially smaller and domestic brands like product price difference.

In the first half of the domestic brands of household appliances in technology research and development on strong inputs, accelerate update product category and extend their price advantage, many consumers in Wenzhou purchasing products shift occurs.

Domestic sales in the first half of the LED TV is obviously good wide brand. At the same time, foreign brands in home appliances to the countryside in the critic, to maintain market share, the team can only take the price auditions, grab the market.

On the other hand, foreign brands have been coming out of the recall and its high-end image.

Last year, Toshiba LCD TV's "vertical bar the door", Samsung for door refrigerator bomb incidents and implementing a global recall, LG also announced at the beginning of the year 105 million national capacity to recall drum washing machines, and recently also occur Panasonic recall of hundreds of thousands of refrigerator. After coming out of foreign brand quality events allow some consumers to foreign brands trust.

In foreign brands and domestic brand appliances price difference gradually narrow to negligible, low-cost advantage of domestic products is bound to be a new path.

Wenzhou appliances supermarket sales official said that foreign brand appliances in mid-range products constantly reduced, especially LCD flat panel TV, almost a zero profit to steal market, this will be provided at the domestic market share. But many domestic brands start in technology efforts, particularly in the functional configuration done "foreign" without me, same price, the lot of a few features that many singles grab grasp of sin.

Such a contest of market competition, the preference of foreign brands of Wenzhou consumers will be the biggest beneficiaries.

It is expected that this kind of competition is likely to spread in during the national day to high-end household appliances.

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