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â— Visit home appliance stores: prices rose on March 3, in a large entity electronics store in Beijing's South Fourth Ring, daily economic news reporter noted that the prices of major home appliances have appeared in varying degrees of price increases. Among them, white-electric refrigerators and air conditioners led the gains, while black prices were mainly television. A number of sales staff of hot-selling home appliance brands told reporters that the brand manufacturers have issued a notice and will adjust their prices around mid-March. One of the well-known brands of sales personnel made it clear that "after March 9, all manufacturers (home appliances) prices 500 to 1,000 yuan."
"Now it is no longer a problem of low, medium and high-end home appliances who have raised their prices. From the third quarter of last year to now, the entire home appliance industry has been increasing prices. The prices of various raw materials in upstream have risen a lot, and the thin profits of home appliance companies have no Measures to increase the pressure brought about by rising consumption.This year alone, the increase in home appliances has reached 5% to 10%.Among them, air conditioners, refrigerators, color TVs, etc. rose the most, air-conditioning average rose 100 to 300 yuan; Color TVs rose by an average of 300-500 yuan, "said industry observer Hong Shibin told reporters, judging from the current situation, the trend of rising prices of home appliances is not over yet.
In fact, the topic of price increases for various home appliance 3C products has been hotly debated since the third quarter of last year. Internet TV, which has always been regarded as a price killer, has taken the lead in opening up price increases and has raised prices several times in a short period of time.
On February 27, LeTV released a price adjustment announcement for some models of Super TVs, stating that “on the insistence of cost pricing and eco-subsidy hardware, some model prices will be raised, and new prices will be implemented starting at 0:00 on February 28. "It is worth noting that this is LeTV’s announcement in November 2016 that the prices of some 40-inch, 43-inch, 50-inch and 55-inch models have been increased by 100 yuan for each model and 300 yuan for some models with 65-inch models. Another price increase decision was made.
LeTV is not the only Internet TV brand to increase its price. On February 8, the 48-inch and 55-inch Xiaomi TV 3S were raised to 2599 yuan and 3999 yuan (excluding freight). In fact, 3S only made price adjustments twice in 2017.
"Color TV is a fully competitive industry with an average net profit of less than 2%, so there is not enough room for profit to absorb the rising costs." Last month, Peng Jianfeng, deputy secretary-general of the China Electronics Industry Association, said in an interview with Xinhua News Agency reporters. . In Peng Jianfeng's view, the price correction of color TV is a normal market behavior, and it is not a bad thing for the industry, enterprises and consumers. In recent years, the use of Internet capital to overemphasize the behavior of low-price competition is neither sustainable nor conducive to the long-term development of the industry.
No matter whether LeTV or Xiaomi, they all want to rely on their own content ecology to “stick†users and achieve profits through continuous membership fees. Therefore, a loss of sales on the hardware can also guarantee “pay first and earn afterwardsâ€. This profit model does seem to work. But from the current point of view, does LeTV's funding support these members' payment year after year until the cost of television is covered? LeTV's price hikes show that the "content subsidy hardware" strategy sales model remains to be tested.
For consumers, in the face of price increases, we must keep a clear head, first of all to overcome the "buy to buy not buy or fall" mentality, do not need to buy products do not blindly. Hong Shibin said that when home appliances go up, consumers can give priority to selecting oligopolists with pricing power. Because of the large-scale enterprises, the bargaining power at the upstream suppliers is strong.
The general increase in home appliances has caused regulatory concerns. The National Development and Reform Commission’s Price Supervision, Inspection, and Anti-Monopoly Bureau held a reminder meeting on the home appliance industry price regulation policy on January 9 to interview major domestic air conditioners, refrigerators, color TVs, washing machines, small household appliances manufacturers, and principals of major e-commerce platforms. The person in charge of the Price Supervision Bureau of the National Development and Reform Commission reminded enterprises not to collude with each other in a horizontal monopoly or to raise prices.
â— Consumption upgrade forced the home appliance industry to accelerate transformation With the continuous rise of raw materials and costs in 2017, this round of price increase may not end, and household appliance prices will continue to be under pressure in the future, which also forces the industry to accelerate the transition to the high-end market.
Take color TV as an example. On the one hand, China, the world’s top ten color TV brands, has taken up five seats. On the other hand, TV companies have been in a state of deficit and profit for a long time, and manufacturers are actively seeking changes. TV companies such as Skyworth, Changhong, Hisense, and TCL intend to resolve the pressure of price increase by adjusting the product structure, that is, continue to reduce the proportion of small-sized models, increase the delivery of 55-inch or more and mid-to-high end, especially OLED products, and accelerate the push. New products and high-end products have stable average selling prices.
Consumers are more and more interested in big TV, which has been confirmed by the data from research institutions.
Alex Kang, Senior Research Analyst at IHS Markit Display Research Institute, market research organization, said: “Although the total TV panel growth has been sluggish, TV panel makers will benefit from the demand for display area due to the increasing average size of television screens that consumers demand. Rapid growth: "The average TV panel size exceeds 40 inches for the first time in 2016, and will further increase 1.3 inches in 2017 to 42.6 inches. "Given that consumers prefer a larger display model and television manufacturers promote more profitable products, the average size of TV panels should continue to increase."
An insider of a panel manufacturer in China pointed out that although consumers have to pay more economic costs to purchase TVs after a price increase, it is positive that currently all panel makers are promoting large-size, high-definition panels. TVs that consumers can buy after price increases will be even better.
Li Yaqin also stated that the panel industry has recently become more complex. In the coming months, structural prices may also appear. For example, 60-inch and 65-inch prices will continue to rise.
As far as the current price rises, the Internet TV brand is the most rampant. The home appliance industry expert Liu Buchen told the Daily Economic News that Internet TV with low prices as a competitive means will no longer have obvious price advantages, but traditional TV brands and Internet TV. The competition will be even more intense. In 2017, TV companies will enter a real knockout.
In the face of business pressure, improving brand reputation and value-added products have become a major competitive force for the survival and development of home appliance companies in the future. Industry experts believe that the intelligentization of home appliances, large screens, entertainment, and the move from traditional to family life center will be the trend after the price war. In response, many traditional home appliance-related companies have already begun their transformation. For example, Foxconn, which is known as a foundry, has announced the establishment of a new-generation LCD production line in Shenzhen. It also announced the establishment of a smart home appliance product research and development center in Shenzhen, while the domestic Hisense Group decided to expand the Silicon Valley R&D organization. For the R&D center, the R&D task also includes a breakthrough pre-study design for the analog circuits required by a single digital audio/video chip, and amplifies the core technologies of display technology, chips, optical communications, and artificial intelligence.
Despite the price increase, the industry is still optimistic about the home appliance market, especially the innovative development of color TV market. In 2016, China's color TV sales exceeded 50 million units for the first time; the average profit margin of the home appliance industry in the first 11 months reached 7.3%, setting a new high in the industry in recent years. Ovid Cloud predicts that the color TV market will continue to grow in 2017. It is expected that the retail volume of China's color TV market will reach 53.10 million units, a year-on-year increase of 4.2%, and retail sales will reach 164 billion yuan, up 5.1% year-on-year.
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The surge in home appliance prices since the end of last year is still continuing. Regardless of the cost-effective Internet companies known as millet and LeTV, or traditional household electrical appliance companies, and even air conditioners, kitchen appliances and other companies, have all raised prices.