Just in the first half of the past, the new television industry, frequent, one after another, 618 E-Commerce Festival is to push the entire industry to a climax. To the surprise of the vast number of consumers, of course, is a lower price than one. When the price of Internet-branded TVs sold online is in full swing, traditional offline TV brands that still account for 70% of the market share adhere to new technological R&D and innovation. On the one hand is the price war, on the other hand is the value of the brand war, who is the industry's future real road?
Xiao Bian asks a question here: As a consumer, will you first look at the brand or price when buying a TV?
Four incentives for color TV industry price war
There are many ways to get users. The price war is usually the most direct and the most lethal. However, if you do a little carelessness, you will kill one enemy and lose 800. The reason why the color TV industry broke out in price warfare seems to Xiaobian, the following four reasons:
First, the product is similar. The current color TV products, whether it is the design or the manufacturing process, it is difficult for consumers to see the difference, so that the user has a product selection syndrome. Therefore, the price has become an important factor in determining the user's choice.
Second, clean up inventory. Excess inventory overstocked corporate funds and wasted inventory management. Usually, the product enters the end of the life cycle, or seasonal goods will be reduced in price before the off-season. Companies adopt price wars and sell at cost prices even lower than the cost price. Although they cannot obtain expected profits, they can return funds, reduce inventory, and reduce losses.
Third, poor channel control. Inadequate corporate control of the channels will lead to price runaway risks. Once the pricing power is mastered by the sellers, it will intensify the price war. Such as Jingdong, Suning set off a price war.
Fourth, the consumption level is low. It is undeniable that in the past decade, consumers' consumption levels and consumer quality have been significantly improved, but their overall spending power is still at a relatively low level. Therefore, to convert potential consumers into actual users, it is quite attractive to lower prices without reducing product quality.
Long-term price war is not feasible
The reason why the price war has always been criticized is that, because the company sells for a long time at a low price, its profit is reduced, and its investment in R&D, technical reform, marketing, management and other fields will also be reduced, resulting in insufficient development potential, and in turn further development. Affecting the company's operating performance, making companies fall into a vicious cycle of muddy.
On the other hand, letting companies suffer from low-price dependency, they mistakenly believe that the problem of product and sales can be solved through price wars. Instead, many colorful electric manufacturers have fallen under the “price benchmark†they set.
Furthermore, for the consumer, the long-term price war makes consumers lose confidence in normal price adjustment strategies, and it is easier to give consumers low-cost labels. Millet, which is low-cost for the user, is an example. It has not been possible to achieve a breakthrough in the high-end area so far.
Value war is the "good medicine" for industry recovery?
Fortunately, from the beginning to the end, companies have adhered to the bottom line of value, placed innovation and R&D at the top of development, and a growing number of manufacturers have realized that price wars are not a good thing for companies to ride the battlefield. The opponent's sharp edge.
What is a "value war"? Xiao Bian believes that the value war is driven by technological innovations by enterprises, continuously increasing the added value of products and services, enhancing brand premium capabilities, and gaining broader market competition space. At the same time, the value war is also creating more value for the user, meet or exceed the user's psychological expectations, so as to obtain the user's psychological identity.
On the technology end, in recent years, LG has continued to create OLEDs, and Samsung has promoted second-generation SUHD quantum dot TVs. In addition, ULED, HDR, 8K, curved surfaces, laser cinemas, and non-screen TVs have emerged one after another, reflecting the technology of home appliance companies. Breakthroughs.
At the end of the content, there is a trend of “continuation of a hundred schools of thought and a hundred flowersâ€. In addition to LeTV’s creation of an Internet viewing experience based on its own ecosystem, Skyworth also presented Tencent Video VIP membership services to high-end TV users for one to two years on the basis of its original content. At the same time, Hisense also said that consumers who purchase VIDAA Internet TV will enjoy the first year of iQIYI VIP content free of charge and have continuous two-and-a-half renewal privilege.
It can thus be seen that television manufacturers have increasingly emphasized the value of their products, promoted the extension of the industry to value competition, and become the “good medicine†for the recovery of the industry.
Build brand value and return to rational competition
Looking at the home appliance industry, there is a certain sense of the mobile phone market. Many home-made smartphones seek to find ways out for low-cost users, but the vast majority of profits in the mobile phone industry are held in the hands of the two foreign mobile phone brands, Apple and Samsung. Even though they are expensive, it is still difficult to stop the enthusiasm of consumers.
“Stones from other mountains can be used to attack jadeâ€, which undoubtedly points out the way out for the color TV industry seeking a way out: price war can accumulate users in a short time, but the brand value brought by the value war is enhanced, and the user experience is enhanced and the user is on the brand. The sense of trust is even more precious.
From price wars to value wars, it is not only the external competition of home appliance companies, but also the booster of the industry upgrade. As a company, continue to focus on the moment, greed for the moment, or look to the future, and strive to lead the industry? TV companies should have the answer.
Xiao Bian asks a question here: As a consumer, will you first look at the brand or price when buying a TV?
Four incentives for color TV industry price war
There are many ways to get users. The price war is usually the most direct and the most lethal. However, if you do a little carelessness, you will kill one enemy and lose 800. The reason why the color TV industry broke out in price warfare seems to Xiaobian, the following four reasons:
First, the product is similar. The current color TV products, whether it is the design or the manufacturing process, it is difficult for consumers to see the difference, so that the user has a product selection syndrome. Therefore, the price has become an important factor in determining the user's choice.
Second, clean up inventory. Excess inventory overstocked corporate funds and wasted inventory management. Usually, the product enters the end of the life cycle, or seasonal goods will be reduced in price before the off-season. Companies adopt price wars and sell at cost prices even lower than the cost price. Although they cannot obtain expected profits, they can return funds, reduce inventory, and reduce losses.
Third, poor channel control. Inadequate corporate control of the channels will lead to price runaway risks. Once the pricing power is mastered by the sellers, it will intensify the price war. Such as Jingdong, Suning set off a price war.
Fourth, the consumption level is low. It is undeniable that in the past decade, consumers' consumption levels and consumer quality have been significantly improved, but their overall spending power is still at a relatively low level. Therefore, to convert potential consumers into actual users, it is quite attractive to lower prices without reducing product quality.
Long-term price war is not feasible
The reason why the price war has always been criticized is that, because the company sells for a long time at a low price, its profit is reduced, and its investment in R&D, technical reform, marketing, management and other fields will also be reduced, resulting in insufficient development potential, and in turn further development. Affecting the company's operating performance, making companies fall into a vicious cycle of muddy.
On the other hand, letting companies suffer from low-price dependency, they mistakenly believe that the problem of product and sales can be solved through price wars. Instead, many colorful electric manufacturers have fallen under the “price benchmark†they set.
Furthermore, for the consumer, the long-term price war makes consumers lose confidence in normal price adjustment strategies, and it is easier to give consumers low-cost labels. Millet, which is low-cost for the user, is an example. It has not been possible to achieve a breakthrough in the high-end area so far.
Value war is the "good medicine" for industry recovery?
Fortunately, from the beginning to the end, companies have adhered to the bottom line of value, placed innovation and R&D at the top of development, and a growing number of manufacturers have realized that price wars are not a good thing for companies to ride the battlefield. The opponent's sharp edge.
What is a "value war"? Xiao Bian believes that the value war is driven by technological innovations by enterprises, continuously increasing the added value of products and services, enhancing brand premium capabilities, and gaining broader market competition space. At the same time, the value war is also creating more value for the user, meet or exceed the user's psychological expectations, so as to obtain the user's psychological identity.
On the technology end, in recent years, LG has continued to create OLEDs, and Samsung has promoted second-generation SUHD quantum dot TVs. In addition, ULED, HDR, 8K, curved surfaces, laser cinemas, and non-screen TVs have emerged one after another, reflecting the technology of home appliance companies. Breakthroughs.
At the end of the content, there is a trend of “continuation of a hundred schools of thought and a hundred flowersâ€. In addition to LeTV’s creation of an Internet viewing experience based on its own ecosystem, Skyworth also presented Tencent Video VIP membership services to high-end TV users for one to two years on the basis of its original content. At the same time, Hisense also said that consumers who purchase VIDAA Internet TV will enjoy the first year of iQIYI VIP content free of charge and have continuous two-and-a-half renewal privilege.
It can thus be seen that television manufacturers have increasingly emphasized the value of their products, promoted the extension of the industry to value competition, and become the “good medicine†for the recovery of the industry.
Build brand value and return to rational competition
Looking at the home appliance industry, there is a certain sense of the mobile phone market. Many home-made smartphones seek to find ways out for low-cost users, but the vast majority of profits in the mobile phone industry are held in the hands of the two foreign mobile phone brands, Apple and Samsung. Even though they are expensive, it is still difficult to stop the enthusiasm of consumers.
“Stones from other mountains can be used to attack jadeâ€, which undoubtedly points out the way out for the color TV industry seeking a way out: price war can accumulate users in a short time, but the brand value brought by the value war is enhanced, and the user experience is enhanced and the user is on the brand. The sense of trust is even more precious.
From price wars to value wars, it is not only the external competition of home appliance companies, but also the booster of the industry upgrade. As a company, continue to focus on the moment, greed for the moment, or look to the future, and strive to lead the industry? TV companies should have the answer.
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