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Recently, some consumers have discovered that the end of the year and the beginning of the year have been the price reduction season for home appliances, but this year there has been relatively little movement. What’s more worrisome is that, from core components such as air-conditioning compressors and LCD panels, to basic materials such as steel, iron, copper, rare earths, and plastic particles, from raw materials to operating costs, there have been substantial price increases. May usher in "getting together" price increases in the near future.
Electric appliance stores have little promotion and some appliances quietly raise pricesAfter the beginning of the new year, Mr. Mu was ready to install the house, thinking that there might be a promotion at the end of the year, so he went to the store to see home appliances with his family. However, after visiting several home appliance stores, he found that although there are still certain discounts for major appliances, the incentives are much lower than the usual two to three thousand discounts during the same period in previous years.
The reporter visited and found that although Christmas and New Year's Day sales have been launched, major electrical appliance stores such as Suning, Gome, and Shangshe Electrical Appliances have sold explosive products, and have also introduced subsidies such as trade-in, but the intensity of discount sales is not large. Occasionally there are "seckill" appliances, which are all limited time offers.
"As early as December 8th last year, we received a price increase notice from a brand company. The industry trend is lack of cores and screens. Starting from December 8th, all sizes of TVs will have a full price increase.
Relevant persons in Suning said that in order to ensure price stability, Suning TV has started stocking in the third quarter, and co-branded manufacturers jointly launched several customized large orders. For different groups of people, Suning TV also launched a deposit subsidy of 5% and a renewal subsidy of 5%. , Big screen subsidy 10%, set purchase subsidy 10%, quadruple subsidy up to 30%.
The price increase of raw materials is the main reason for the price increase of home appliances. Data show that most of the raw materials for home appliances started to rise in August last year, and the rise reached a climax in October. In 2020, the rise of main raw materials for home appliances will be more than 40%. Among the direct raw materials for home appliances, polymer MDI, which accounts for "half of the country" in the refrigerator and freezer industries, topped the market with a rise of 122.2%.
A related person explained: The main reason for the rise in TV prices is the rise in the price of core raw materials (liquid crystal panels), and the cost of raw materials accounts for up to 80% of the TV production process. With the closure of Samsung/LG LCD panel factories and the market's increasing demand for LCD panels, the supply of LCD panels is severely insufficient and prices have risen, which in turn has led to an increase in TV prices.
Statistics from Omdia show that at the end of November last year, the price of a 55-inch 4K LCD TV panel was US$170, while the price was only US$100 a year ago, which means it has risen by 70% in just one year. The price of 65-inch panels has remained above US$200 for two consecutive months. The iage of the 43-inch 1080P LCD panel exceeded US$100 for the first time, and the 32-inch also hit a new high in recent years at US$61.
According to Ovi Revo’s forecast data, global panel shipments in 2021 will fall by 1.0% year-on-year, and TV prices may continue to increase. The average retail price of the color TV market recovered to 2,808 yuan, a year-on-year increase of 9.3%.
In fact, this round of increases is not only the prices of various raw materials for home appliances, but also the "visible" and "invisible" operating costs of home appliance manufacturers. Including logistics and distribution, marketing and promotion, maintenance services and other links, there has been a round of collective growth under the entire industry chain.
Many insiders in the home appliance industry told reporters that the strength and duration of this round of increases exceeded expectations. In the first quarter of 2021, and even throughout the first half of the year, this kind of increase will be common and will continue.
