The price hike strikes again: How can small and medium-sized refrigerator companies survive?

Hard times are still continuing in the refrigerator market, especially for a large number of small and medium-sized refrigerator factories, which are now facing even greater hardships.

On this side, the price of upstream raw materials such as black materials has been rising step by step, pressing the cost line of life and death of small and medium-sized refrigerator factories. The price of black materials alone has skyrocketed from 24,000 to 29,000 yuan. If the already rising labor costs and logistics costs are taken into account, the increase can be said to be frightening;

On the other hand, the retail prices in the downstream first-tier markets continue to fall. The retail prices of many refrigerator giants have locked the cost line of small and medium-sized factories, and the prices of refrigerators have fallen back to ten years ago. A large number of small and medium-sized refrigerator factories can only bear not to raise prices, or raise prices less. But it is almost impossible to reduce prices at a loss;

How can a large number of small and medium-sized refrigerator manufacturers survive under the pressure from both ends? This is a major issue that is urgent. After all, whether it is the upstream raw material prices or the downstream retail prices of complete machines, it is impossible to see a big turnaround in the short term. With one rising and one falling, corporate profits are being eroded and the market survival space is being squeezed.

However, for large refrigerator companies, they have to take advantage of the rising prices of upstream raw materials to squeeze the living space of small and medium-sized factories. As far as the price of raw materials is concerned, large companies rely on their large-scale purchasing capabilities and have the bargaining power to completely dominate upstream suppliers. In this way, they can maintain profitability under cost advantages under the same product and quality. Small and medium-sized factories can only exit at a loss.

Therefore, the way for small and medium-sized refrigerator factories to survive is obviously to avoid the quagmire of low-price competition, and to form differentiated competition with large enterprises in market channels and user groups as much as possible. Even if the differentiation is very small, they should dare to break through; the way to survive is to establish a multi-platform development system for differentiated products and brands. Don't just focus on prices, but pay attention to the differences in products and channels.

There were no roads in the world originally, but when more people walked on them, they became roads. Similarly, for many small and medium-sized refrigerator factory owners, it is the brave who wins when they meet on a narrow road. It seems that there is no way out, but there may be a bright future: the most difficult thing at present is to make good products, the easiest thing is to promote channels, the most luxurious thing is to rise in brand power, and the most impossible thing is to improve management efficiency. However, if we change our thinking and change the track, we can find that: channels are public, products are our own; brands are slow and meticulous, and management is the real magic weapon.

Next, all small and medium-sized refrigerator factories must continue to build their brands and promote their own brands, especially by taking advantage of the younger consumer groups to promote the brand's transformation into a younger and more fashionable one; at the same time, they must continue to invest in technology, not big innovations but micro-innovations and small innovations, and functional differentiation based on consumer insights, to truly launch differentiated new products that are different from their peers; finally, it must be efficient and refined internal management, to maximize the ability to fight the cold winter by improving efficiency and reducing costs.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.