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Tricycle price war can be done, but not only price war!

- May 10, 2017 -

For the tricycle industry, price war is a cliché, and the electric car "new GB" is the media every year, the same topic, the different is the "new GB" just in the vague industry do not know when to lift the veil, but the price war is all the time in the influence and even change the tricycle industries.

From the start of a tricycle slowdown, the price war began to really show its lethality, "Combat vehicle", "special car" and "to the old new" began to rampage the market, countless do not do well to meet the competitive preparation of enterprises and dealers are low-priced out of the door, to promote the industry integration shuffle the

In the overall development of the relatively low-end of the tricycle industry, the price war is afraid but also have to join the doomed battle without victors. A decade of Price wars, the average profit margins of tricycle dropped more than 1000 yuan, the number of production enterprises eliminated more than half, the number of dealers decreased, the former that almost every county has "electric cars, tricycle a street" most of the left half of the street, there are many brands are the same boss is doing.

Starting 2016, "high-end" the word with the aura of salvation generally appeared in the tricycle industry, it seems that suddenly became the industry's new life-saving straw. Many well-known brands, although the mouth does not follow suit, but also quietly to this path adjustment. And from creating "high-end" effect, some brands do in the brand and product force to maintain a relatively high profit margins, but who's money to know, this is true gold silver smashed out, belonging to high input output of the long-term operation, and not for the overwhelming majority of tricycle enterprises.

Therefore, the tricycle industry began to show more obvious polarization.

A pole is the strength of the "high-end" camp, through extraordinary brand promotion expenditure to enhance their value-added, elevating the profit margin of the product, as long as the operation of the capital chain Health, there is a great opportunity in the future to obtain generous returns, thus occupying the bulk of the domestic tricycle market share, this trend has been very evident;

The other is a large number of other "low-priced" regiments, there are many small and medium-sized tricycle industry, which is the most serious, the most fierce competition, they do not have to squander the backing of the funds, no more than others ' product R & D capability, no nationwide marketing network, price war is the most commonly used weapon.

In the author's view, the low-end market price war is understandable, this in China almost all industries are widespread. But if a tricycle is simply a low price, then sooner or later, it can only be "killed". Simple low-priced, often means that more than others thinner than the riser, more easily broken pieces of plastic than others, more than other than the fault of the circuit, not to mention good after-sales service, only the tricycle industry will be pulled down the bottom line.

Comparatively speaking, we often mention the "cost-effective" in essence is also in the emphasis on price advantage, but do I think that small tricycle enterprises should be the most pursued positioning, at the same price to provide consumers with better quality products, more to do some real sense of differentiation, at least to provide the most basic after-sales service to protect consumers and distributors to worry about cleaning, gradually accumulated corporate reputation, through the effect of a snowball growing themselves.

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