Of 98 ~ 2005 Times The Scale Of The Rapidly Developing Economies Of Scale

Chinese home appliance industry ups and downs, from luxury goods to fly into homes of ordinary people in achieving their own time over a huge, also witnessed the great changes in social and economic life. Especially from 1998 to now over 20 years, we have to feel the wheel of history by the rapid development of slowly moving into the big speed.

Rapid expansion of China’s home appliance market

1998, China’s home appliance market, the total capacity of less than 200 billion in 2005, the size of the household appliance market, has more than 500 billion. Market bigger cake, and the consumption level of people’s lives improved. This is the home appliances market in recent years, an overall summary. Which,

Kitchen

Electrical appliances, refrigerator, washing machine market has maintained steady development.

Air conditioning

,

TV

And small household appliance market is showing a kind of leap-forward development of the state.

Into the late 90′s, air-conditioning industry developed rapidly. Air conditioning in 2002 production reached 24 million units in 2003 to 34.5 million units in 2004, 48.25 million units. 2005 urban households across 30 air-conditioned to maintain rate of 78%, and compared to 1998, an increase of 25 percentage points. Shanghai, Beijing, Guangzhou and other large scale air conditioning for every 100 urban residents have already reached 108% above the rate. China air conditioning industry in the 21st century rolled on the fast track its development, the rapid growth stage to maturity by the completion of the history of change.

TV industries can be said to be ups and downs in recent years. March 1996 the price wars began to color TV, breaking the past 5 years the domestic color TV market price stability, that TV market has become

Monopoly

Competitive market. The traditional CRT TV manufacturers are also in this almost cruel almost total collapse of the price. In 2000, the flat-panel TV started to enter Chinese families. After 2001, 2002, 2003 and 2004 market introduction up to 4 years period of 2005 entered the flat panel TV product growth period. China’s color TV market in 2005 reached a total of 18 million units, in addition to the traditional CRT TV to become the king of

TCL

,

Konka

,

Skyworth

,

Chang

Four big families, but also emerged

Haier

,

Hisense

, Xoceco a large number of flat panel such as new business.

In addition, the small household appliance market in the last five years have been a sufficient development. As people improve the quality of life requirements,

Microwave ovens

,

Cooker

, Hairdryer, shaver and other personal life began selling small household electrical appliances used. Huge market capacity and potential and relatively high profit margins have made it more and more external

Capital

To the rapid accumulation of small household appliance industry. In 2004, the market size up to 500 billion yuan, a fast-growing small-appliance market in 2004 horizon.

Price war

Demonstrate marketing effectiveness

Recent years, the rapid development of large household appliance market, the credit due to a price war after another to promote and support. Back in 1998, before air conditioning, color TV, refrigerator,

Washing machine

And other home appliances

Sell

Prices have been relatively constant, while enjoying the various electrical appliances manufacturers are highly profitable and even fun times profits. Unfortunately, good times good, as manufacturers compete in the market increased, more and more new entrants to be known in a short time only, but also market share, have chosen to play an effective price of arms.

The price war, was undoubtedly the most representative of the air-conditioning and TV. Report from the National Bureau of Statistics data show that: just four years, the average price of air conditioning products have shrunk by half every year to keep a decline of around 12%. Originally from some manufacturers have margins of more than 50% of color TV industry, CRT as profits in the early 90s has been fierce price war hit running out of their price cut has slowed, the flat-panel prices are 30 per year % rate decrease.

Price war that can not forget Leroy, Ying Yan,

Oaks

And other well-known one by one

Brand

. The competition in the market in recent years emerged in the price to send representatives, but today has shrunk.
About the Author

I am an expert from China Manufacturers, usually analyzes all kind of industries situation, such as coffee grinder hand , magnetic knife holder.

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