Survey: Jiangmen Prices Rose In 2006 Appliance
Since the city
(Jiangmen)
In addition to TV outside the home appliance prices both rise
Refrigerator up 0.9 percent year on year, washing machines, up 2.3 percent year on year, up 5 percent year on year air conditioning, microwave oven up 0.1 percent year on year
City departments, according to recently released survey appliance prices by the domestic raw material prices, the impact of rising energy prices this year, the city suffered from various types of home appliances of different price levels to rise.
City departments concerned over home appliance retailers, manufacturers conducted a survey of the results: substantial increase in raw material prices is the main reason for promoting the appliance prices, which directly led to investigation of the five kinds of home appliances (TV, refrigerator, washing machines, air conditioners, microwave ovens), in addition to TV, the other four kinds of production costs; four kinds of ex-factory prices and retail prices of home appliances were up to varying degrees.
Three reasons why prices of a wide range of home appliances
According to the staff of relevant departments, the momentum of price increases this year, home appliances, in fact, already set to take center earlier in the year, but only the price of individual varieties of fine-tuning. Four or five months, the prices of varieties significantly expanded range has improved markedly.
Survey shows that rising prices of raw materials, refined oil, electricity, fuel prices and increased consumption of concentration is to promote the three major causes of home appliance prices, in which the main raw material prices. It is understood that this year, home appliance production of major raw materials of copper, aluminum, stainless steel and plastic prices have both been significantly higher, such as copper, in the first half rose 60% above average, the highest price in May rose by 100%. Raw material prices caused a substantial increase in the cost of home appliances manufacturer, only to absorb the cost by increasing the ex-factory price, leading to end retail price increase, such as the city’s Golden antelope brand washing machine production, this year in June, the average ratio of production costs each year washing machine increase of 30 yuan, or 4.5%. To ensure a reasonable profit margins, plant prices of some models of washing machines were up, while the enterprise reflects the continuing rise in oil prices, a general increase in freight prices, materials and products, a substantial increase in transportation costs; with electricity, fuel prices continued to rise, home appliance production cost has increased.
People prefer to buy brand-name consumer concentration increase also makes home appliances prices possible. In recent years, home appliance brand market share in the city are improving, air conditioning, for example, Haier, Gree, the U.S. occupation of the three domestic brands more than 40% market share. Increasingly strong consumer brand awareness, the natural price sensitivity of the brand will be reduced, businesses raise prices on products, as long as the rate of consumer recognition in the context of sales would not have a significant impact, therefore, the brand with a high concentration for the business venture to raise prices to provide a reliable guarantee.
A more subtle way of price increases low
The characteristics of prices for household appliances, the staff of that appliance prices this year is mainly characterized by price increases range, low-margin, more subtle way, lead by the well-known brand, other brands to follow up.
City departments were on TV, refrigerators, washing machines, air conditioners, microwave ovens and other appliances the price of 5 were investigated, in addition to TV prices fell 2.7%, other 4 kinds of different degrees prices rise, which refrigerators rose 0.9%, washing machines rose 2.3%, air-conditioning rose 5 percent, microwave ovens rose 0.1%.
According to the survey, household appliances rose more subtle way, businesses often use prices and special alternating manner, with the festive, seasonal price reduction, price increase in customers unwittingly achieve the goal. Common practice is: business on the basis of the original price of slightly reduced, to consumers caused by “price” of the illusion, over a period of time, then ended the promotions business for the reason to re-adjust the price to rise even higher than the original price “normal price”, a few cycles, prices have been on a higher level.
In addition, this increase is to take the lead by the well-known brand, other brands to follow up. It is understood that the city’s home appliance market is highly competitive, although the ex-factory price up, but businesses are not willing to affect the market share because of price increases, but the purchase costs of up to digest, merchants in the course of business, Select well-known brands generally lead prices, because customers a high degree of brand recognition, a slight price increase would not pose a major impact on sales, so prices of brand-name products in the operation as the lead role, while other smaller brands as the market response to follow-up care.
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