2002 air conditioning industry characterized by price wars dialysis.docVIP

 PAGE \* MERGEFORMAT 5 2002 air conditioning industry characterized by price wars dialysis Hisense first stirred in 2000, the ‘working-frequency revolution’ in 2001, Leroy ‘compressed upstream resources’ and Ochs’s ‘father and mother revolution’, air-conditioning market, the average price level has been an overall reduction of 30% - 40 % or so. February 26, 2002, Glanz the first to the flag prices have gone down Ochs, Kelon, Leroy, power and other enterprises have followed suit, triggering air war in 2002. In the long run, air-conditioning price reduction is inevitable, for three reasons. First, large air-conditioner industry, the elasticity of demand, while the supply elasticity is small, difficult to balance the supply and demand. Although the general trend in recent years is the air conditioner industry in the rapid development, but if you encounter an economic downturn and climate anomalies can occur shrinking demand, or the growth rate slowed. Second, air-conditioner industry, the development potential of the enterprise competitive pressure gradually decreased gradually increased. Third, the air conditioning industry is currently difficult to change the situation of supply exceeding demand, product homogenization of more serious, leading to manufacturers, businesses basically identical competition means the main reason. Enterprise Market Research Center, Beijing, researchers integrated air conditioners from January to April this year, the characteristics of the industry lowers its prices are as follows: (1), second-tier brands to provoke a price war - Glanz, Ochs, Kelon, Lok Wah Estate, power and other second-tier brands cut prices to stir up the first air conditioner price war in 2002, Gree, Midea and other first-line brands while not openly cut prices, but also means to participate through a variety of promotional price cuts. (2), air-conditioning industry, price wars have become more rational - appliance market last year, the most controversial topic