To flat-panel TV, for example, because of their prices too fast, plus the market is still in start-up phase, enterprises have invested a lot of manpower and financial resources for the promotion and launch market, flat panel TV's average profit less than 1%. On the appliance industry, from production to the price of Competition Competition will continue the cycle of
Joint research under the Chinese household appliance market discussion group of the survey data show that in 2005 China
Air conditioning
The total market sales of 26.56 million units in about 2004, the data only with considerable; exported about 25.6 million units, compared with 2004 growth less than 10%. Correspondingly, is the air conditioning industry, the expansion of the overall production capacity has reached a considerable scale:
Haier
, Gree, Midea, etc.
Brand
Du said production capacity expansion to more than 1,000 million units.
Look at the domestic refrigerator industry, is now a capacity of 25 million units, the market capacity of only 10 million units. With the high-end market
Competition
Intensifies, the refrigerator industry has started a new round of expansion: Recently, Meiling Group executives to announce, from 2006 onwards, Meiling Sihe for the existing production base, creating a new industrial park Meiling Industry the objective is to build Asia's largest single-class four million units annual production capacity of refrigerator manufacturing base; LG has also decided to continue the replenishment of 160 million yuan in Taizhou, the new one upscale refrigerator production line, will be officially put into operation in January next year.
Not only air conditioners, refrigerators, capacity expansion and overcapacity in almost spread to the entire consumer electronics industry. China
TV
Domestic market capacity for the year 3500 to 40,000,000 units, plus exports but 80 million units, while the TV company claimed to have production capacity has reached that number twice or more;
Mobile
Industry overcapacity is a "disaster area": the industry's annual production capacity of as much as 400 million, but in the domestic market
Marketing capabilities
Was less than 100 million.
Marketing is a direct consequence of lack of coordination led to sharp increase in inventory and
Price war
. According to statistics of the State Information Center, 2004
Air Conditioner
Brand from more than 150 in 2003 down to 96 in 2005, another 27 brands out of the competition. Area in the refrigerator, the same data has shown that the average price of refrigerators has dropped to 2,229 yuan in 2003 to 1,988 yuan in 2004, fell more than 12%, although some Korean series in 2005, turned to high-end brand competition, but in the low-end Competition remains intense in the field of prices.
China's household electrical appliance enterprises
why it is so keen on expansion of production capacity? Develop even in the knowledge that will lead to a serious industry-wide excess capacity situation continued fanatical pursuit of scale? Guangzhou, the army attack plan
Business management
Director of Strategy Consulting Limited, the famous home appliance industry observers Liu Buchen, that keen on the capacity of the enterprise to a certain stage in the development of products. With the rapid market expansion, market demand stimulated by the rapid expansion in all, while the capacity curve and demand curve are simultaneously upgrading and always exceed demand growth, the growth in demand when the market tends to slow or eventually stop , the capacity should increase by inertia for some time, when production capacity far exceeds demand. The excess capacity is a direct consequence of the waste of resources, including plant, equipment, personnel and other resources idle.
Liu Buchen, that companies develop competitive strategies and sometimes not too much to consider their own
Social Responsibility
, But only to put business interests first. In order to prevail over competitors, companies must take absolute advantage in size, as the result of fierce competition within the industry must be industry consolidation, small brands out of the market and the scale of the "big" you can guarantee a certain extent, the competitiveness of enterprises. With
LCD TV
For example, is currently involved in the domestic LCD TV market competition is not a claimed capacity of less than 100 million units, while demand for China's current LCD, but also full with 3 million units, although there are business component is exaggerated, but the TV production can greatly than the market needs is really an indisputable fact, it can not be said that brutal competition in the industry results.
Then, how to make business out of production capacity from the Competition? Overcapacity? The price war cycle? Liu Buchen, this is not optimistic. I am a professional writer from China Crafts Suppliers, which contains a great deal of information about digital dial gauge , metric dial indicator, welcome to visit!
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