September 29, 2010
by the financial crisis, many large companies in order to maintain market share, has lowered retail prices. SMEs in the case of loss of price advantage, the future will be how to break it?
price for the return of production capital
correspondent recently in Fuzhou, a number of supermarkets, store to see many large companies are engaged in product promotion activities, the intensity of the unprecedented.
Fujian Quanzhou Xinhua Shopping Plaza is the most popular shopping center, the reporter saw the big brands have settled in price promotions, pricing of between 30% -50%, shoes Products the biggest drop in price about 50%. Anta, Jordan, 361, Del benefits, Olympic, special steps these shoes leading companies have joined the price war. Reporters saw at Anta, a pair of popular 2008 shoes retail price is 385 yuan, folded after less than 200 can buy. Chen Xiangyang, students from overseas universities, told reporters: “In the past prices of these brands are about 8 fold, the higher discount this year, up to 5 fold, some of the more obsolete models, even with 2 discount – you can buy hundreds of dollars to. The price of some small and medium enterprises in the past can only buy the product. “
Lee Lang suit factory in Jinjiang City, Fujian resident, called” 08 Strong storm “of goods sale activities in full swing: a few thousand square meters of exhibition area is the piles of clothing, clothing such as jackets, suits, shirts, T-shirts and a series of plant products, is almost a discount price. A suit jacket only 30-50 yuan. According to insiders revealed that the peak of several hundred million yuan a day income exhibition.
In order to cope with the current severe economic situation, in addition to Lee Lang, the joeone, seven wolves, rich bird, Olympic, special steps such as brand-name companies have introduced a variety of different degrees of special promotions , the price war has become a major competitive brands means. A brand of the company sales director, told reporters: “The basic product is a promotional company over the past year backlog of inventory, if not in time will take the money to run businesses, although sales prices are relatively low, but huge amounts of money within a short time but can be recycled . “terminal sales prices eroded the market
low-cost treatment products manufacturers, the greatest gains of the consumers. However, the market operator is a big blow. Bao Chau Road Quanzhou clothing wholesale Lin Zhenshun told reporters: “are middle and low wholesale clothing business, wholesale objects are within the cities and counties in Fujian Province level retail market, close to the year before, when business is very good, every hair to over dozens of pieces of cargo, stores this year by the Quanzhou area of ??greater impact, one day made one or two goods is very good. Quanzhou city has so many brand shoes and apparel companies, the spate of promotional activities to attract more to more consumers, the price of these products than small and medium enterprises cost of the product price is lower and if this continues long term, the market will be “big fish” eat. “
correspondent visited Some small and medium enterprises shoes, they also found the sales market concerns. Jinjiang a shoe boss told reporters: “2009 is certainly not as good as the sales market in 2008, and all manufacturers issued to dealers around the tasks in the new year sales shall not be less than 2008, the dealer is difficult to complete the task, in order to keep distribution rights, local dealers on price adjusted accordingly, in order to attract more consumers, as long as a price reduction of large enterprises, SMEs, there is no price advantage, so they were taken away the original low-end the market. “He gave reporters an analogy:” Now the brand sports shoes most of the retail price of 200 yuan, according to half of the amount sold, the retail price of only $ 100, and 100 yuan this price is the selling price of products for SMEs, SMEs now price to 70 yuan a pair of products, consumers will not necessarily accept the 100 yuan a pair of shoes for large enterprises, there may be profit, but 70 yuan a pair of shoes for small and medium terms, there may be a loss. “
Reporters on small and medium enterprises both products and brand prices, a random survey of consumers 50, 90 percent of respondents said they would use well-known enterprises price products because the brand influence.
price is not the only means
Quanzhou government economic advisory group of experts on the phenomenon of large corporations worried about markdowns, small and medium enterprises in the local economy plays a decisive role, particularly in addressing labor and employment issues has been outstanding. Quanzhou city in the economically developed, more than 70% of the jobs is to provide small and medium enterprises. The survival of SMEs rely on price advantage, thanks to the second and third tier markets. Quanzhou SMEs can now face the difficult transition situation: SMEs are done before the export orders in recent years as the overseas markets and increased risk of some companies to sell to domestic market. However, with well-established brands dominated the domestic sales network and a major consumer groups, cities, small and medium enterprises can develop second and third tier markets with price advantage to survive. If the brand company to launch a price war, and the sales channels to twenty-three market, and then, the living environment for SMEs will have been squeezed. Well-known brands from the end of the promotional activities of view, once the prices come down, the sales share of SMEs certainly be eroded away. Professor of Renmin University of China said Eddie Wong, bring low-cost promotional sales is limited, a peak sales period does not mean that the consumption of the entire market, just ahead of consumer price promotions, and postponed consumption, rather than increase consumption. Brands should strive to develop potential markets, rather than compete for existing market.
for SMEs, do not blindly join the price war, price is not the only means of corporate marketing. Consumers are diverse, their different characteristics, different needs, price sensitivity is also completely different. Some consumers want convenience, some consumers want fashion, and some consumers in need of services. Small shoes and apparel companies to plan the direction of the selected target population, designed the company value, targeted to go its own way.
