Although the central air-conditioning market has repeatedly raised the price of prices in recent years, it is undeniable that the price hikes in the central air-conditioning market in 2017 have come to the fore. As of the end of 2017, mainstream brands in the market have issued notices of price increases. Unlike before, even some brands have raised their prices for several consecutive rounds, especially for home central air-conditioning products, ranging from 3% to 15%. It is foreseeable that in the case of multiple cost increases, the price increase of the central air-conditioning industry will continue to spread.
Judging from the raw materials situation in 2017, the increase was the largest and unexpected in history. The prices of copper, aluminum and steel have all increased, as well as the material of packaging materials and logistics costs have increased significantly. More worth mentioning is the refrigerant. From the beginning of 2017 and even the second half of 2016, the information on the price increase of refrigerants has begun to appear one after another, and the increase is shocking, with the highest monthly increase of more than 50%. On the one hand, in 2017, it encountered the highest level of environmental protection supervision in history. Many upstream manufacturers of raw materials faced production stoppages, rectifications, etc., which caused products to be out of supply, and demand exceeded supply. On the other hand, new traffic regulations also made logistics costs rise again. The overload standard of bicycles is reduced, and the total amount of freight is unchanged, which means that the unit price of freight is increased, and taxes and fees are also increased. The unit price of transportation has also increased by more than 30%. The central air-conditioning market has flowed from the initial calm to the undercurrent until the new price adjustment strategy has surfaced.
In 2017, the competition in the central air-conditioning market has become more intense. Both the project market and the home central air-conditioning market have entered an unprecedented period of white-hot rubber. Everyone is struggling to win the market. First of all, the phenomenon of price wars in engineering projects is not uncommon. However, under the pressure of rising costs, the constant concessions in the face of prices have caused many companies to fall into the dilemma. Moreover, the home improvement retail market is the largest market in recent years. An important position for brand competition, some manufacturers are worried that the rash price increase will affect the overall sales. Therefore, from the perspective of enterprises, the pace and magnitude of price increases are not consistent. Due to the strict requirements on profit margins, some enterprises took the lead in issuing price increases under the pressure of various costs. According to different product types, the price increases were different, especially for new products. Some enterprises have temporarily withstood the pressure brought by rising costs, worried that the price increase will affect the sales of the whole year, or through other means to reduce the pressure; and some enterprises have not yet issued the price increase letter but have already verbally disclosed The dealer will soon increase the price, but the time is not fixed. What is certain is that the situation of sharp rise in raw materials and shortage of spare parts will continue. The pressure on central air-conditioning enterprises will only increase, and the final price increase is the most effective and direct way.
From the perspective of channel market conditions, the increase in the price of central air-conditioning products is inevitable. Some engineering companies have reported that if the price hikes spread, or the price adjustments between brands vary, it will have an impact on the project market. Low profit margins, long construction period, and slow payment are the top three pressures of engineering companies. If manufacturers pass on cost pressures to engineering companies, then engineering companies may face losses in order to survive, and the cost of installation will be higher. In fact, for the engineering market, the price increase of manufacturers is mostly in the dark observation stage. After all, the price has a great impact on the project market. Some engineering companies have said that the engineering firm with strong financial strength will choose to distribute the goods in advance. The survival pressure of the weaker dealers will only be greater or even eliminated. The dealers in the home central air-conditioning market are relatively active. At present, most of the online brands have already issued price increases, but it will take some time to reflect the price increase on the terminal, especially at the critical moment of the end of the year. Some dealers have proposed new transformation ideas in the after-sales service, and introduced different standards and different price points for the installation process for consumers to choose, take the Seiko installation route, and let consumers take the initiative to pay for the service. Indeed, with the development of the home central air-conditioning market, profits are more transparent, and only by continuously improving the quality of the dealers themselves can they gain a long-term place in the market competition.
In fact, consumers' sensitivity to prices has been decreasing year by year. The survey results from Aiken Air Conditioning and Refrigeration Network specifically for consumers show that as consumers become more aware of central air-conditioning products, the program Design, company qualifications and capabilities, after-sales service, etc. slowly overtake the price and become the basis for the final choice, and the reasonable price increase is acceptable.
In fact, there is no need for over-interpretation and excessive panic in the price increase, especially the general trend of this “generalizationâ€. In the long run, this price increase is like a double-edged sword. Although the overall capacity of the central air-conditioning market is still expanding, the profit margin is getting lower and lower. A reasonable upward adjustment of the price is conducive to the enterprise to re-adjust the product structure and further optimize and upgrade the original product system. At the same time, it can also bring more healthy and rational development to the channel. On the one hand, under the pressure of further compression of profit margins, the difficulty of marketing will also increase, which is more conducive to the improvement of marketing level; on the other hand, to guide the channel business to positive changes in business, the market will also be more benign Direction development.
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