Appliance industry profit is low turn out great cause to lift the 4 – air condit
Recently by Iron ore Impact of price increases, Baosteel and other domestic several
Steel Inc. have announced the sudden rise in the first quarter of 2008 the supply price, or 8%? 10%, followed by the copper and aluminum up companies are prepared to follow suit. Of steel, copper, aluminum, etc.
Raw materials -Based home appliance industry will be the first to be significantly affected. Substantial increase in raw material prices will certainly affect the price of home appliances, household electrical appliance enterprises operating profit down, so that the future survival of the industry on the home appliance industry a greater concern.
Overall profit is low Recently, the domestic stock market in turn into the climax of the annual report disclosure. Continuation of the first three quarters of 2007 the rapid growth of listed companies in 2007 annual results still show growth inertia. However, according to the Central Plains
Investment Management Consultant's latest statistics show that more than 40 companies listed appliance annual results despite "good news" will be greater than "Bad News", but still the same as last year grad. In the strong competition, difficult home appliance, in which
TV The performance of the weakest section, mostly losses,
Air conditioning , Refrigerator Section performed better,
Small appliances Show greater investment opportunities, but compared with other industries, the entire appliance industry average sales profit is not high, only about 3%.
Passage of time, a year has passed, can not help but recall the past, so let us work together to take this review, inventory of 2007 the main focus of domestic appliance industry events, to the past and.
2007, the Chinese home appliance industry, is a surging, grew by nearly Cross, waves of the year.
To welcome the Beijing Olympics 2007 Appliance predators play the "Olympic" brand, the Olympic battle smoke billowing; Some appliances Gangster series of losses, asset restructuring, more and more serious
TCL Even staged a "Brokeback insurance markets," large; appliance stores enclosure movement intensified, large and medium discarding, faithless with
States United States Lightning marriage, set off waves in the home appliance chain; the government subsidize the appliances to the countryside bypass vigorous action, appliances to accelerate to 34 extension; CPI continuous rise in prices as the pain of home appliance industry in 2007, sustained rise in raw material prices to the home appliance industry has brought great pressure; brutal price war weakens each category in 2007 the competitiveness of home appliances, near the edge of loss, business is almost no funds to improve the technological content of products, improve the industrial design; 2007 Black mobile phone increased flooding, caused by strong domestic mobile phone on the impact of diversification, as both mobile consumer electronics companies increasingly serious situation, some brands have reported losses.
Addition, the domestic appliance industry is still flat
TV , Mobile phones, air conditioning and other fields, their cracks around the channel, the standard game, events such as product innovation in a field of interpretation of a hot battle. These events from the product, brand, business, channel depth affect other aspects of Chinese home appliance industry in 2007.
Four "causes" 2007 peace on domestic appliance industry is not the problem more and more, many of the crisis emerged, and these crises are triggered by several causes:
First, the present system of domestic appliances business and mechanism . Although the office market economy, but the leaders of state-owned enterprises incentive plan is still in the times, frequent personnel changes, policy makers are careful, can not really feel free to continue to strengthen and expand business. Substitution for the strategy of the enterprise is a great harm.
Second, vicious price competition Cycle . The purpose is not to eliminate competition in the market competitors, but rather strengthen and expand the industry together. Many home appliances have not patented, can not bring a premium brand, but also to compete for market share, had to hard price competition, advances business resources for survival.
Third, over-diversification. This will not only increase
Business management
The complexity and difficulty to control the risk and increase the management costs of enterprises, and excessive diversification also led corporate bodies bloated, leading to poor awareness of appliance market, the market reaction speed slow, corporate internal friction burden.
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