After the wave of price cuts business go from here-.docVIP

 PAGE \* MERGEFORMAT 7 After the wave of price cuts business go from here? The color TV industry for the first time negative growth, the price surge after the company go from here? An official of the State Ministry of Information Industry recently said that China’s color TV industry, the first negative growth in the first half. From January to June, China’s color TV industry produced a total of 16.54 million color TV sets, -3.4% over last year, selling 19.4 million units, an increase of -0.9%. The official said that in 1997, China’s color TV output to 24 million units in 1998 surge up to 34 million units, resulting in color TV market a serious oversupply of large inventories, which led to negative growth for this year’s color TV industry, the main reasons. August 11 and 12, respectively, Shenzhen Konka and Changhong color TV announced a big reduction in prices, in which the largest decline of 20% Konka, Changhong and the drop higher, up to 35%. Annual production capacity of the domestic color TV has been more than 40 million units, while the market demand, even including the export of parts, and only 30 million computers a month, the gap between supply and demand of 10 million units. Imbalance between supply and demand caused by the underlying reason for this is redundant construction, color TV manufacturers from time to time up to 200 more than TVs in the 90 mid-shift an oversupply of products from the shortage, the price war is obviously inevitable. Price war has accelerated the development of China’s color TV industry, a number of enterprises through the baptism of the market development and growth, China’s color TV enterprises have to compete with the strength of transnational corporations, but on the other hand, we have seen in many varieties of color TV sets and even a low price at the cost price of the circumstances, the price war is continuing staged! There is no doubt that a price below the cost of war will never be a winner, but why would such a pric