[Preface] Many people think that "pushing up" means selling high-quality high-end home appliances at high prices and harvesting the market at high prices. In fact, this understanding is wrong and is the result of product thinking. Only by solving problems can we establish user th

[Preface] Many people think that "pushing up" means selling high-quality high-end home appliances at high prices and harvesting the market at high prices. In fact, this understanding is wrong and is the result of product thinking. Only by solving problems can we establish user thinking.

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Recently, I often hear a saying in the market - push new ones and sell highs. Promoting new selling highs is a major development plan suitable for domestic consumption upgrading, and it meets people's demand for home appliances from a "food-supply" to a "quality-oriented" development of basic functions; promoting new selling highs also adapts to the requirements of the transformation of the home appliance industry and is an active market strategy that keeps pace with the times.

However, some people rarely have any misunderstandings about "promoting new" and are constantly launching innovative home appliances to meet people's diversified needs in pursuit of quality. But it is not the case for "selling high". Many people think that "pushing high" means selling high-quality high-end home appliances at high prices and harvesting the market at high prices. In fact, this understanding is extremely wrong.

High quality cannot be equal to high price

People's demand for quality of life is constantly improving. Taking home appliances as an example, in the first 30 years of more than 40 years of reform and opening up, home appliances are witnesses of the continuous improvement of living standards. The washing machine has a single cylinder to a double cylinder, a pulsator to a drum, and a volume of 5 kg to a volume of more than 10 kg, reflecting the advanced product from the low-end to the high-end. The price gap has also widened with the advancement of products. The difference between a few hundred yuan and tens of thousands of yuan

Have you ever remembered it? When CRT TVs were about to be monopolized by the "Red Sun" family 40 years ago, the emergence of flat-screen TVs became recognized as high-end, but the price was also high due to their unique characteristics. In the 2K era of LCD TVs, the emergence of 4K was high-end, and the price also rose. In the era of LCD TVs, OLEDs and Mini LEDs suitable for large screens have emerged, and the price has reached a higher level.

Of course, many people think that high quality and high-end prices can be equated. Yes, the materials used for high-quality and high-end products are indeed different from those used for general products, and they are of relatively good quality and have stricter processes. Moreover, the new product has just been launched, and the cost of R&D and other things needs to be shared when the sales volume is not large. Therefore, it is understandable that the price is relatively expensive.

However, there is one phenomenon that needs to be paid attention to, that is, the price of high-end products is relatively high, and can only meet a small number of consumer groups, while most consumers can only sigh! After all, some high-end products are several times higher than popular products. For a consumer product, although the excessive price meets the current needs of high-end users, it also limits their subsequent updates and iterations.

High price hinders market popularity

From the past 40 years of popularization of home appliances, every new product from its launch to its popularity is accompanied by a process of continuous decline in prices. If the price is always high, it will be out of reach for most consumers. Like TVs, when LCD TVs first appeared, the 40-inch TVs, as the father of LCD, were sold for about 10,000 yuan, which was out of reach for ordinary users. And now, 65 or 70-inch ones cannot reach this price.

Therefore, if high-end products and high-quality products are to be popularized, the prices must be reduced. For example, "There are fewer people in the spring and snow, and many people in the lower limbs." Only by reducing the price to a certain level can most people afford it. Otherwise, it would be like the high-ranking Yangchun Baixue, with a high and low profile!

compares OLED with LCD. Technically speaking, OLED is naturally more advanced than LCD. Theoretically, OLED has better picture quality performance, thinner body design, and better eye protection effect. However, due to price constraints, LCD TVs are still dominating the mainstream market. In particular, Mini LED not only has the ability to compete with OLED in terms of display, but also has a comparative advantage in price. It can be seen that it is the price advantage that is the fundamental reason why TV manufacturers are making plans.

Another example? In the early days of reform and opening up, many families liked to buy microwave ovens of Japanese Panasonic , Sony , and Sanyo . Why didn’t these foreign brands do it later? Because they realized that their microwave ovens had a factory price that was more expensive than the retail price of Galanz , they had to sell the factory directly to Galanz. Why is this happening? This is how Galanz achieves efficiency improvement through scale and decreasing marginal costs, which is called low-cost strategy . This is not a price war, but a low-cost strategy. Of course, low cost does not depend on sacrificing raw materials, but on two logics, technological revolution and management revolution, releasing productivity through technological revolution to improve efficiency, and significantly reducing production costs through scale-up management revolution. It is these two revolutions that have brought about low-cost strategies.

The reason is very simple. Many good technologies and high-quality products are difficult to popularize because of the high prices. After all, home appliances are consumer goods, and high prices can only satisfy those who make 100 million yuan in a small profit, and consumers are still very concerned about the price of consumer products. High prices are the biggest obstacle to the popularity of products.

Reasonable price is beneficial to high-end

If you want to accelerate consumption upgrade and let high-end products enter thousands of households, you must consider reducing the high price, otherwise consumption upgrade will be empty talk. It should be realized that with the application of new technologies, new processes, and new materials, coupled with the advancement of digital production, manufacturing costs will continue to decrease, and with the scale of high-end new products in the market, it is possible that prices will continue to decline. Moreover, in a mass-consuming product like home appliances, it is impossible to make huge profits.

High-end must be a high price? High prices are only relative. Only by reasonably priced home appliances must not only make producers and operators profitable, but also make Guangdong consumers worth the money, so that home appliances can contribute more to quality life. It can be foreseen that in the future, more high-quality, high-tech and high-value emerging home appliances will fully renew consumers' life scenarios, promote the upgrading and transformation of the industry structure, and bring more happiness to the public.

It should be pointed out that we cannot regard the price reduction of normal products after maturity, or the cost reduction brought about by the technological revolution, as price wars. Price wars are an abnormal means of competition, and the industry hates price wars, and no one wants to disrupt market order because of price competition.

However, when new product technology matures, it is the real product value to reduce prices and benefit the people, and it is more in line with the rules of market economy . The high price will never make the product popular. Therefore, when your product is not competitive in the market, you think about whether there is something wrong with your pricing!

Home appliances are not diamonds - one is forever passed down! No matter how high-end home appliances are, they are durable consumer goods. What are consumer goods? It is something used to realize the function of use, not preserve and inherit it like diamonds. What needs to be preserved is in the museum. In hundreds of years, let future generations remember what electrical appliances people use in our era?

China's infrastructure, China's high-speed rail, and China's home appliances, can enter the global market and have strong competitiveness. It is because of its high quality and low prices that have defeated the monopoly of multinational enterprises and embarked on the broad road of the Belt and Road! So, high-quality and high-end do not necessarily require high prices. Isn’t that the truth?

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