Bombshell sharp price rise of buildings gree mishap

Keywords: gree gree AC price hikes gree

The world brand lab report: rising raw materials prices, especially recent copper prices soaring, air conditioning and high speed enterprise, a substantial increase in the cost. For example, this year, copper prices from 4.3 $/ton had straight up to the peak of 8 million Yuan/ton. Although prices have dropped, but remains in the upper, if consumption in accordance with the normal average conditioner with bronze 6 to 7 kg per air conditioner will light copper costs 100 ~ 200 Yuan. This gives air conditioning manufacturers resulted in cost pressures are still very great.

Against this background, the various manufacturers on the price of air conditioning are growing ever louder, and formed the so-called price League, a planned and systematic way to implement their price action, hoping to raise prices, full air conditioning offset the rising cost pressure. As an air conditioner manufacturing leader of gree, is the first publicly stated the price of the air conditioning business, but also the price range of the highest air conditioning business, its action will naturally be more interesting. But in my view, this has strongly reinforced self-centric personal heroism, in the face of real air conditioning market competition is like bombshell.

By virtue of a: gree

What would dare to gree as price pioneer? I think that may be obtained from the following areas to expand the analysis.

First, the cost increase, that is, the raw material of a beginning of said price increases. From the perspective of cost pricing by increasing prices, offset the rising cost of materials, pressure is the most glamorous reason gree is win market recognized Salchow.

Second, the more highly profitable pursuit. Household appliance market due to the "years of war" and home appliance stores in price, makes product profit margins decrease, including gree, air-conditioning Enterprise urgently needed by raising prices to enhance profitability. Air conditioning manufacturers consensus between, gree perhaps think there is a whole industry as the backing, as long as we all follow up, their first rose also does not affect the overall situation. At the same time, another possibility is to play with consumer manufacturers in psychological warfare, before the arrival in the high season publications price information to consumers so that consumers in the air before the crazy procurement price rise. And copper prices continuing to rise just has provided an opportunity for the price.

Third, the status of the channel's control. Gree's self-built channels is known in the industry, its purpose is to prevent the price from chain giant to suppress. After several years of construction and development, gree already have their own powerful chain specializes in network, this network in gree also have not affected by external forces directly restrict self pricing, the pursuit of more highly profitable right, "my site I call the shots".

It is for the above reasons, the price of the gree into the background.

2: substantial rise in price of hard gree injury

One thing always contains two aspects. Although the price increases of gree has the markets and the enterprises themselves, surface looks reasonable, but hidden fatal mishap, dig your own grave.

First of all, the price is not a Terminal.

All appliances sold between competitive, in order to maintain its own market share and price advantage's public image, they will definitely not hastily open price, that will severely suppressed air-conditioning manufacturers price, make your own air conditioning department stores with competitive price. For example, many chain magnates took from stock to stabilize prices, prices of manufacturers oppose acts.

A sales terminal, now there are dozens of domestic air-conditioning brand, far from being met fierce market reshuffle, description and air conditioning manufacturers still have a big profit space, copper price increases by the air-conditioning manufacturers internal digestion. And manufacturers price increases have exceeded the cost of the actual upgrade. From this perspective, the channel will naturally be considered now Terminal and rampant price of calls, more air conditioning manufacturers tracts price objective, nor will it support prices.

In this case, although the gree has its own channel can self pricing, but other manufacturers mainly rely on the chain home appliance giant channels in the terminal support, other manufacturers can put the price up, then eventually the real possibility of achieving a substantial price rise is just gree's family. This clears the entire market price and the "matures" gree, will be subjected to the risk of market ruthless abandon.