TV to price rise: China's biggest manufacturing fallacy - color TV, television, flat panel - hou

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Recently, color TV industry to price increases in 2004 as the news spread fast among the people like the plague, and many of the media does not help. Some "experts" and "industry" has assumed a color TV for all the reasons to verify prices, and some even give an accurate estimate: color TV industry in the next year based on current average prices will rise sharply, up by about 15 % to 30%. Also "by extension" of the relevant industry was predicted that the number of consumer durables such as household appliances, IT, communications products, will also rise.

It? How do we in the end of the current number of raw materials and industrial products, agricultural product prices? How do the basic raw materials price increases on household appliances, communications and other traditional manufacturing industries in 2004 prices to impact? To the author's point of view, next to TV as the representative of traditional home appliances will not only increase the price, but also a certain level of decline in space!

Reason for not raising their prices

Global industry development trend, prices of electronic products has tended to decrease, this price trend will continue. As advances in technology, low-cost alternative materials, promote the formation of large-scale manufacture of basic raw materials of these industries in the proportion of total product costs will continue to the next. At the same time necessitating the development of new technologies to reduce manufacturing enterprises, as businesses in turn reduce the formation of a larger scale within the manufacturing. Currently, China's electronic products also is the case.

Run from the domestic situation in view of the economy, water, electricity, coal, steel products and other basic raw materials increased by different degrees, which is obviously the overall investment demand in recent years, and infrastructure caused by the substantial increase in the economic moment The "stagflation." Price increase next year in the TV industry, public opinion, the most important reason is because economic "expansion", leading to the rise in raw materials, color TV industry, the price has also risen. The inference seems justified actually wrong. Current raw materials prices is only stage, the rate of increase is not high, Moreover, many companies have and have stockpiled large quantities of raw materials to meet it. Therefore, the basic raw material prices will not affect the price of machine products.

From customer consumption habits and Economic Analysis, the traditional home appliances, electronic products, consumers have been accustomed to "buy down up not buying the" rational consumption habits, and home appliance products, the price elasticity of demand and relatively large, once the price increase in the demand for these products have a more significant decline, which for much abroad, "anti-dumping" troubled, intense competition in the domestic market has no doubt that domestic enterprises are worse. In exports is bound to generate a large number of stocks, how to digest? Certainly can not rely on price increases. Domestic color TV and mobile phone industries have been pushing the major consumer groups and from three to four markets. The market price elasticity of demand of consumers more, plus more enterprises to participate in such markets, competition will be more intense, lower prices will inevitably bear the brunt of the tool.

Finally, from the perspective of business competition game, current domestic appliances large excess manufacturing capacity is an indisputable fact. A higher degree in the market, very competitive environment, companies must be subject to any decisions of other firms within the industry. To TV companies, for example, participation in any competition and have certain "weight" of the TV companies do not incite active prices, because prices, if other companies did not respond and follow-up, the company will lose a large number of consumer and a larger market share, so their competition into a very disadvantageous position.

Raw material prices, depreciation of the dollar, the international division of labor to complete these manufacturing enterprises in China, especially as represented by the traditional TV industry composition of the price pressure on manufacturers. However, according to the author of the above analysis, the possibility of price increases is close to zero. So, should the household electrical appliance enterprises can be sitting ducks? The answer is clearly no.
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Article Source: http://depositarticles.com/

I am a professional editor from China Suppliers, and my work is to promote a free online trade platform. www.frbiz.com/ contain a great deal of information about samsung p735 , hp ipaq h6325 welcome to visit!

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