The development situation of household appliances market
Assignment
for
Managerial Economics
MGEC 514
Assignment Name:
The development situation of household appliances market
Assignment Number:
1
Teacher:
Zhimin Tang
Student Name(s):
王萍莉
Student Number(s):
0133700772
Class:
2013FT
Team Number:
2
Submission Date:
2013年9月8日
The development situation of household appliances market The influence of the global financial crisis has already spread to the real economy gradually. In this depressed circumstances, the government issued some policy which can expand domestic demand and adjust structure of the market. A. Current Situation. a. Consumer demand. As the level of economic progress, people's consumption level also rise gradually, it is not a problem to buy household appliances for most people in the income level nowadays. Because the competition is intense and the market has been basically saturated, price is getting lower obviously in recent years. As most of the families already have had all the basic equipped, which lead consumers to buy household appliances for displacement. For a small number of the consumers who want the high-end home appliance, quality and service is the main purpose of the purchase. According to the current urban household income and consumption levels, the price of home appliances now is around thousands of Yuan, which are the intermediate goods. This means the demands of cheap goods is bigger and less demands for high-end goods in the market. b. Cost. The manufacturing cost of the appliances are not only limited to the rising material prices, but also the transportation prices, sell lease prices, and staff wages are also rising. This make the profit space become limited, and there is also competition between brands, so many home appliance enterprise suffer a survival problem. In this grim market environment, the rising cost can only be digest internally. The enterprise which have the cost-control and risk-resist ability is equal to have a sustainable
for
Managerial Economics
MGEC 514
Assignment Name:
The development situation of household appliances market
Assignment Number:
1
Teacher:
Zhimin Tang
Student Name(s):
王萍莉
Student Number(s):
0133700772
Class:
2013FT
Team Number:
2
Submission Date:
2013年9月8日
The development situation of household appliances market The influence of the global financial crisis has already spread to the real economy gradually. In this depressed circumstances, the government issued some policy which can expand domestic demand and adjust structure of the market. A. Current Situation. a. Consumer demand. As the level of economic progress, people's consumption level also rise gradually, it is not a problem to buy household appliances for most people in the income level nowadays. Because the competition is intense and the market has been basically saturated, price is getting lower obviously in recent years. As most of the families already have had all the basic equipped, which lead consumers to buy household appliances for displacement. For a small number of the consumers who want the high-end home appliance, quality and service is the main purpose of the purchase. According to the current urban household income and consumption levels, the price of home appliances now is around thousands of Yuan, which are the intermediate goods. This means the demands of cheap goods is bigger and less demands for high-end goods in the market. b. Cost. The manufacturing cost of the appliances are not only limited to the rising material prices, but also the transportation prices, sell lease prices, and staff wages are also rising. This make the profit space become limited, and there is also competition between brands, so many home appliance enterprise suffer a survival problem. In this grim market environment, the rising cost can only be digest internally. The enterprise which have the cost-control and risk-resist ability is equal to have a sustainable