Causes Of Pressure On The Kitchen And Electricity Market?

- Apr 20, 2019-

There are many reasons for this pressure.

First of all, with the promotion of natural gas, more heat-burning products on the market, on the one hand to increase competition, on the other hand, also played a role in consumer guidance, because of the lower cost of use, gas products have won a part of the consumer, divided into a slice of the electric heating market. Second, the explosive growth of the market in previous years has brought about two obvious performances, the entry of new brands into market and the expansion of the capacity of old brands. Due to the lack of brand precipitation and long-term development planning, some new brands have taken short period of speculation, in the market under the so heavy postpone withdrawal, resulting in many products become "service orphans", to the entire electrothermal industry has brought some negative impact.

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In addition, for the old brand, the expansion of production capacity in the case of market contraction led to the duplication and surplus, the backlog of inventory brought greater operating pressure. Third, consumer awareness of category demand and consumption has changed. On the one hand, rational choice becomes the mainstream consciousness of consumption, on the other hand, the consumption consciousness is also more refined, and the demand for product function tends to be centralized and simplified.

The simplification of function leads to the most direct result is to reduce the entry threshold of the industry, and for brand-making enterprises, simplification makes the cost of manufacturing higher, and in the face of the decline in consumer prices, input and output ratio of the imbalance is one of the sources of factory pressure. The population dividend is no longer, the economic environment is down, the production and manufacturing link profit space repeated compression ... When this series of industry-common problems arise, in fact, just in the overall situation of the industry stagnation, but also to test the enterprise as a time, is the best time for a brand to develop upward.