Low prices are the quickest way to quickly capture the market, but they are also the most difficult and most unwilling enterprises to adopt. Because of this, price wars have been dismissed by the industry and few companies have succeeded.
In fact, the price war is like the "Seven Injured Boxing" in Jin Yong's martial arts novels. As a result of the Shu school handed down from the outside world, the seven wounded fists sang Weihehe on the rivers and lakes. When they punched, the momentum was amazing. There were seven different strengths in the punch, either fierce, or feminine, or just soft, or soft. Just, or out of the line, or sent straight, or inward contraction, the enemy can not withstand this source of power, they will be deeply internal injuries. However, "there are yin and yang in the human body. Five elements of gold wood, water, fire and earth, the heart is fire, the lungs are gold, the kidney is water, the spleen is soil, the liver is wood, a training seven injuries, all seven are injured, the five elements of the tone of yin and yang, Loss of heart-damaged lung destroys the liver and intestines, hides the spirit of loss and loses consciousness, and the three coke is reversed." This seven-injury boxing exercise is one layer deeper, and one's own internal organs are damaged by one more layer. The so-called "seven wounds" are actually hurting oneself and injuring the enemy again. If internal forces are not immersed in the environment, they will have great harm to themselves.
Although the price war is the next step, as a "magic weapon" to increase sales and quickly squeeze the market in the short term, quite a few companies are unable to stop. At present, there are mainly the following aspects in the market for reasonable and low-priced product sales: First, the backlog of product backlogs is processed to quickly process inventory repatriation funds and take a low-cost sell-off; second, in a specific period of time, in a specific area, for a specific product To reduce prices in order to achieve the goal of quickly occupying the market in the short term; thirdly, to counter the market competition of competitors, and to counterattacks in the market strategically; fourthly, as a marketing tactical means, a strategy and competitive products specifically set according to the profit model of the enterprise Guarantee market sales. It is undeniable that there are quite a number of companies in the industry who, for the sake of short-term interests, for the sake of windfall, disrupt the market with counterfeit, inferior, and low-quality products. Of course, in market operations, there are very few companies that have reached market share, especially emerging brands with considerable strength, often resort to low-profit or even loss-making strategies to impact the market in order to change the existing market structure, but this requires the company to pay The big market price is even more harm than good.
Just like the Seven Injuries Boxing, although low prices can wind up in the market, it also requires companies to have deep internal strength to withstand. Among these, companies are the first to bear strong capital strength, whether they can support the corporate operating system in the case of low profit or even negative profits, and free up hands to fight against competitors; in addition, because the price is not controlled, companies need to have Relatively sound management system to ensure delivery speed, after-sales service and other service support in operation; Third, set a reasonable profit model, ensure that the hematopoietic function of the enterprise will not be destroyed on the basis of low price; Finally, reasonable control of the business The cost of various procurement, manpower, services, logistics, etc., to obtain greater room for price reductions. Of course, as a provocatee for price wars, companies must also be ready to be the target of public criticism and numerous competitors. This places very high demands on the company's funds, products, teams, marketing, and partners. Therefore, many companies choose to sell their products strategically.
With the maturity of the market and large-scale production of enterprises, in the case of breakthroughs in technology and growing maturity, rapid decline in product cost control, and excessive brand and overcapacity, each industry will experience different levels of price cuts, especially in the industry. In the case of transparent information, companies face a serious backlog of products, the market tends to fade, and sluggishness, which will become the trigger for price wars. It is undeniable that the lighting industry in the transition period of the industry will inevitably experience this pain. The clock back to two years ago, in 2008 Beijing Olympic Games, Songye Lighting, Benbang (Huaqiang) lighting all share a share, "wall flower wall outside the incense." So far there is still not many people know that these companies are out of leech.