Channels Involved In Manufacturing, Some Companies Worry About Price Wars Intensify

Channels Involved In Manufacturing, Some Companies Worry About Price Wars Intensify

According to "Modern Express" reported that

Suning M & A Group may be in Nanjing, "Yuhuan" and "Bole" two old state-owned enterprises, respectively, with an annual output capacity of 100 million small household appliances and refrigerator manufacturing base. Just a week ago,

States United States Electric's parent company, Eagle Group has just announced the official White love more, R & D its own brand of home appliances. Two

Home appliance chain Giant invariably involved in manufacturing, means that commercial capital is gradually increased control over the upstream manufacturing sectors.

Countries into the United States denying production

It is understood by Beijing Eagle

Investment Group Limited and love more than a joint venture of the new company, called the "National America love more", the registered capital of 50 million yuan, Beijing Eagle Investment Co. holding 51%, the two sides will jointly invest 130 million yuan of new companies. However, Planning Minister Li Songsong Gome in an interview with reporters repeatedly stressed that the United States acquired the country more than love does not mean that States United States to fully enter the home appliance production, this is only the company an opportunity for investment projects. Gome and the Eagle Group is still based on real estate and

Appliance Retail Based enterprise group. Suning big to do its own brand

Air conditioning Compared to GOME, Suning Appliance in fact already involved in manufacturing. March 2001, Suning invest 50 million yuan and the U.S. Songs and international, winning the Hong Kong International in Nanjing, the joint force to build Philco air conditioner, Suning holding 50%. Suning have this project was defined as "the first large-scale commercial capital into the manufacturing Industry. " To June 2003, Suning has established a joint venture with the United States Fedders Air Conditioning Co., Ltd., from last year, Fedders air conditioner has been part of in Suning stores in some areas and even into the air before Suning sales 10.

Said Sun Weimin, vice president of Suning, Suning produce their own air conditioning advantage is that the whole industry chain in upstream production processes to enhance control, with pricing power, and by

Johnson The relationship between manufacturers and retailers closely and fixity.

One mode of production and marketing concerns raised

For the two giant home appliance chain moves, the State Council Development Research Center of Market Economy Institute deputy director Lu Renbo that the larger the home appliance chain, the profit squeeze on the upper reaches of the bigger manufacturers. Direct injection of manufacturing commercial capital, is undoubtedly reflect the most direct way of capital penetration and increased bargaining chip with the other vendors.

But a washer business leader told the press that their concerns over the country will love the United States acquired businesses in an unequal position of other disc players. For example, in stores in the love of many products into the most prominent position, and if other companies to do this, we need to pay many costs the country U.S.. In the promotion policy, concessions for a similar situation will exist. More importantly, if the States United States to take more than love as the vanguard of lower prices, forcing other firms to follow price cuts, it is a nightmare for the enterprise.

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