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Internet Sales lead Price Wars Among Manufacturing Enterprises

   Release date: 2019-08-31     Hits: 29     Comment: 0    
Note: Internet Sales Enters Price War for Manufacturing Enterprises,CEO of gmtlight: Internet sales let manufacturing enterpr

Internet Sales Enters Price War for Manufacturing Enterprises,Internet Sales lead Price War for Manufacturing Enterprises!

Internet Sales Enters Price War for Manufacturing Enterprises

CEO of gmtlight: Internet sales let manufacturing enterprises enter the price war. On the e-commerce platform, whether Taobao or ebay, price gap has become the first factor that consumers pay attention to, and brand ranks second. This makes many good brands of products, but lost the Internet market. That's why the battle between Glea and Aux was fought.

CEO of gmtlight:Aux has won the victory of online sales at a low price. The quality of Gree air conditioner is very good, but the price advantage is poor and the sales volume is not up. Therefore, the Internet platform is a low-cost platform, for manufacturers, but also a non-profit platform.

CEO of gmtlight:It can be said that, under certain factors, the Internet platform has a harmful effect on the brand. Like the 6-inch fluorescent rod we made, it used to cost $0.35 and now it's $0.20. There's no profit for us to talk about. But other suppliers can sell for $0.15, so many users choose low prices. As a result, the market is dominated by low-quality products.

There are two major air conditioning brands in China, Aux and Gree, and Haier, Media etc,of course.

The reasons why the air conditioning market has turned upside down are as follows: first, the market tends to be saturated and the power for renewal is insufficient. After years of development, the air conditioning market is basically saturated in the urban market. Although the rural market has increased, the growth is slow. The peak period of real estate construction has passed, and the incremental basis is unstable. Second, the continuous high temperature weather has not appeared. May-July is usually the peak season of air-conditioning sales, but this year during this period extreme weather occurs frequently, the duration of high temperature is short, to a certain extent, affecting the sales of air-conditioning.

Behind the competition between China's two major air-conditioning brands is the defect of Chinese people's market operation and product consumption concept. Most people lack marketing knowledge and value price in the sales process. Most consumers have less brand awareness than price awareness.

As the air conditioning market continues to cool down, the competition among brands becomes more and more fierce. In the first half of this year, we can see that the competition has been upgraded from undercover competition to "real guns and live ammunition", and the overall pattern of air-conditioning has changed a lot. Relevant data show that Gree's share in the air-conditioning industry, which has a strong market, has been loosened, especially in the online market, has been completely crushed by Media and AUX, which also forces Gree to bow in the face of price war.

From the practical point of view, the effect of air-conditioning price war is not ideal, even with the use of low-cost promotions and other means, the days of manufacturers are not good. Price war is a marketing strategy, but it is not the only and most important way out.

Is the social order a bit chaotic? Why? Answer: It's all caused by the Internet.


 
 
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