Domestic Electronics Manufacturers Facing Fierce Competition
Xinhua English Newswire
Fri, Jan 09 1998
Despite boasting a rapidly increasing market share in 1997, China's household electronics appliance manufacturers will face growing tough competition with foreign brands on the domestic market during 1998, according to a survey conducted by the State Statistical Bureau and China Statistical Society.
In terms of the domestic color television market, the report noted that market share of such foreign brands such as Panasonic, Philips, Sony and Samsung have rebounded from a year-long decline. Panasonic and Philips ranked on the list of top 10 bestsellers on Chinese market during 1997.
Domestic color TV manufacturers have little room for further price reductions, and could very possibly lose market share to the foreign rivals whose technology and capital advantage are far from being challenged by Chinese counterparts.
Foreign brands held a 5.51 percent share of the refrigerator market in 1997, with Panasonic and Sony once again included on the list of top 10 bestsellers.
The report acknowledged that foreign companies will most likely gain an even greater share of the refrigerator market in 1998.
In addition to introducing their own VCD players to the Chinese market, foreign companies have accelerated the promotion of DVD products and are quickly breaking the dominance of Chinese VCD manufacturers on the video products market.
Various foreign companies will introduce DVD players priced at some 2,000 yuan (US$241) this year, and will in turn spark a rising DVD consumption in China, according to the report.
The only way for Chinese household appliance manufacturers to survive the fierce market competition is to accelerate technical renovations and launch new products, rather than simply engage in a cut-throat price war, the report said.
(Copyright 1998) |
