Redwood furniture cabbage price hurt?

This winter, Dongyang Redwood has become a hot topic on the Internet. In Beijing, Jinan, Shandong, Shenyang, Liaoning, Nanjing, Jiangsu, Chengdu, Sichuan, and other places there have been "Dongyang mahogany furniture factory price direct benefits" activities, red sandalwood, rosewood, rosewood and other high-grade mahogany furniture, will play a "clearing price" " Cabbage price "" selling less than 20% of franchise stores" selling point. As far as the scene knows, the original price of 118,000 yuan rosewood sofa 6 sets, the current price is only 49,000 yuan; red rosewood bed 3 sets of original price 138,000 yuan, the current price is only 39,000 yuan; sofa plus bed plus table 16 sets of mahogany furniture, the original price of nearly 250,000, the current price of only 49,800 yuan ... ... so the temptation of the price, many consumers shouted "I really did not expect, too cheap!"

The form of this direct selling event is similar to Taobao's double 11 online shopping carnival. Many brands of mahogany furniture are displayed on the Internet, and consumers are attracted by an attractive price. However, we know that mahogany furniture seldom has such a significant price cut. Therefore, when direct sales appear in the market, one cannot help but wonder: Is this activity tricky? Will the product price increase after the price increase? Product quality how about it?

In 2014, affected by the big environment, the mahogany furniture market also suffered winter, and many manufacturers complained that business was not good. The adoption of this method of setting the price of products by manufacturers is nothing but a desperate attempt to get out of the difficulties in the market downturn. They hope that through such price reduction promotions, they will consume backlogs of goods, speed up the circulation of goods, and quickly return operating funds.

However, it is undeniable that direct sales will have a significant impact on the mahogany furniture market. The price of "cabbage" disrupts the price of mahogany furniture in the original market, which in turn reduces the profitability of products and squeezes the living space of enterprises. Direct sales will push mahogany furniture from high prices to low prices, which may lead to vicious price competition in the industry. In addition, some manufacturers will take the opportunity to drill down the drain, and use cheap and expensive products to act as high-end products. This will not only disrupt the market order, affect the image of mahogany furniture industry, and may even cause permanent damage to the market development. In the interview, many mahogany furniture companies in Zhongshan and Dongyang did not agree with the direct sales meeting. They said that compared with other furniture products, the “high price” of mahogany furniture lies in precious materials, deep cultural connotations and high technological content. Good things, such as mahogany furniture, should be worthwhile. In selling, it is necessary to maintain its taste, rather than selling it at a low price. If manufacturers simply blindly sell their products, they will undermine the rules of the market and the value of the product itself.

Although "tablet prices" mahogany furniture is easy to attract some price-sensitive consumers, but it should be noted that "cabbage price" is also easy for consumers to form a low-quality image, so that product attraction greatly reduced, and even affect the brand's long-term Development and consumer loyalty. When consumers are accustomed to the price of mahogany furniture “cabbage”, the status of the brand in the minds of consumers will be the grade and image of the price of “cabbage”. Now, the mahogany furniture industry has entered the era of brand competition as the core, manufacturers pay particular attention to the continued spread of word of mouth. Many international big brands such as BMW, Mercedes-Benz, Hermès, Chanel, etc. are rarely discounted and reduced in price. They retain consumers' hearts and minds not in terms of price but immutable high quality, unique brand connotation, professional and meticulous quality. service. These aspects are worthy of learning from mahogany furniture companies.

The low price embodied in the price of "cabbage" means that it is nothing more than a gimmick. It attracts consumers' attention with low prices and generates a great deal of buying behavior. The situation of “biscuit prices” continues. It can be predicted that the environment of mahogany furniture market will become worse and it will be a great blow to corporate brand image.