subject: Foreign Home Appliance Stores: Wholesale And Retail Price Difference Mainly To Make Money [print this page] Abroad are mostly 'first payment, after delivery' profits depend on commodity spreads, while balancing the relationship with the upstream appliance business.
Mainly wholesale and retail stores spread abroad to make money by slotting allowance are living on the domestic
"Do you really think the Chinese market, the price is very low household appliances you? In fact, you may be surprised, the same products sold in North America, the price lower than China, but higher profit margins." President of Best Buy China, Lv Weimin before the "First Financial Daily" said that the reason for this situation is, domestic home appliance chain sales channels too costly. Wholesale and retail stores abroad, mainly in post to make money by slotting allowance is a living and domestic.
Said Sun Weimin, president of Suning Appliance, Best Buy and other foreign retailers higher profit margins than the 10% domestic to 15%. Yongle Home Appliances spokesman Huang Jianping more, said Best Buy's gross margin of about 24% to 27%, while domestic public data show that the general appliance gross profit margin of only 12% of the hypermarket.
On manufacturing capabilities, product quality, China's household electrical appliance enterprises and their foreign counterparts do not have much compared to the gap. But the chain of hypermarkets in the general cost of sales accounting for manufacturer sales revenue 11% to 12%, of which about sales slotting allowance of 2% to 3%, the cost-sharing in the commodities, will inevitably improve the product unit price. This is the upstream appliance manufacturers in recent years and the National United States, Suning, Yongle contradiction between these supermarkets have been the reason why.
Lv Weimin said the occupation of the domestic channel provider payment model and unreasonable, "the special environment of this model, while many retailers are also property developers in China, which is very disadvantageous for manufacturers. Abroad are mostly 'prepaid shall, after the supplier 'profits depend on the spread of goods, while balancing the relationship with the upstream appliance business. Best buy will replicate this model in China. "
Present, the overall price by the market operator, domestic appliances unit price difference is not significant. Vice president of market advisory firm Sino Ye Ping, said last year's Samsung 40-inch LCDTV (LCD TV) is about 14,000 yuan of domestic unit, Best Buy in the U.S. is selling 1,799 U.S. dollars (about 14,032 yuan). "If you include the consumption tax, the United States, higher than the domestic price also. Of course, this is basically a foreign brand." Sharp Business (China) Co., Ltd. General Manager Rintei Qing point of view also supports this assertion, he said, are completely made in China and exports household appliances, such as Changhong, many in foreign countries than the domestic price low, but Sharp is priced the same product basically the same at home and abroad. "Slightly lower in the Japanese market is because they do not include 5% consumption tax, the United States is also true." If the domestic market of home appliances unit in 17% of the value added tax deduction, Sharp's products sold in China cheaper than in the United States.
The State Council Development Research Center, said Lu Renbo, deputy director of the market, under certain conditions, some brands or advertising effect for the Distribution Issues, the price may be low, but this is very rare. Sun Weimin, the domestic appliance exports export tax rebate policy, reflected in the foreign market price may have some advantages, but overall the domestic appliance prices low for all to see. TCL general manager of global emerging markets overseas, told reporters that easily spring, TCL products overseas is much higher than domestic prices, some more than 50%, and the price is up more space. However, he also said that some low-end domestic appliances OEM export price is very low indeed. In response, Ye Ping is not to say, he said: "Although China's household electrical appliances production value, large, left smaller, such as LCD TVs to ship nearly 18 million units, accounting for about 40%, but sales of only 48.8 billion yuan (about 60 billion U.S. dollars), accounting for less than the global total (300 billion U.S. dollars) to 20%, the export unit price each converted into about 2,300 yuan, only equivalent to a good CRT (conventional CRT) TVs . "
[Key words]: Suning States United States
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Foreign Home Appliance Stores: Wholesale And Retail Price Difference Mainly To Make Money
