Chinese Enterprises Lead
with High Performance Price Ratio
HO CHI MINH CITY, Vietnam, Aug. 19,
2011 /PRNewswire-Asia-AsiaNet/ -- Attacked by Japanese brands in
the "price war", Chinese brands are enhancing their brands
publicity to win the edge in "performance price ratio" in the ASEAN
market.
The largest electrical shop of Ho
Chi Minh City has stocked up on all kinds of household electrical
appliance from China, Japan, and South Korea. It is not hard to
find that the price of Chinese brands is 15-20% lower than similar
products from Japan and South Korea.
Several years ago, the price gap
between Japanese and South Korean brands and Chinese brands was
about 20-30%. The high performance price ratio in recent years has
changed the low quality image of "Made in China" in the heart of
Vietnamese since major Chinese brands like Midea, Haier, and TCL
set up branches in Vietnam, which exerted great pressure on
Japanese and South Korean brands, lowering the price of their
products continuously. The closest price gap was merely 5%, and
sometimes their actual price after promotion activities was almost
the same to that of Chinese brands during festivals and
holidays.
There are various indications that
Chinese brands will adopt the magic weapon of "performance price
ratio" again by lowering costs after expanding their production
base, augmenting the size, enhancing their brand publicizing, and
the integration of channel, storage, and distribution etc. They
will also increase their support for the local supplier of raw
materials to accelerate the localization of raw materials.
Recently, "The 2011 New Products
Launch Conference in ASEAN Area by Midea Group" was unveiled in Ho
Chi Minh City, during which the president of Midea Living Appliance
Group ASEAN Division revealed that Midea will invest $40 million on
the building of a new production base and increase its products to
cover all household electrical appliances. Midea has already
realized the full localization of supply chain and its R&D is
also on the way to localization. At present, Midea Living Appliance
Group ASEAN Division has become the largest electric fan producer,
rice cooker producer, induction cooker producer, and the largest
exporter of household electrical appliances in the ASEAN area. Many
products of Midea have become the leader in the market of ASEAN
countries like Vietnam.
By taking this measure, Midea hopes
to maintain a reasonable price gap of 10% to 15% with Japanese and
Korean brands on the premise of continuous increasing of brand
influence, and they want to win more market share in ASEAN with its
high quality products, excellent after-sale service and their
internationalized brand image.
SOURCE Midea