The Bottleneck in the Development of the Domestic Yacht Industry - Lost Pricing Power
Release time:
2018-04-02 17:10
Source:
The domestic yacht industry, after experiencing rapid development in just a few years, is facing the same dilemma as many industries such as steel, rare earths, clothing, and footwear: gradually losing pricing power, with vicious competition leading to a rapid decline in industry profit margins, and product research and development, as well as quality upgrades, facing an awkward situation.
The reasons can be summarized in the following two aspects:
The number of new enterprises is increasing daily, and after starting up, they compete for market share by lowering prices, which forces older enterprises to also reduce prices, creating a vicious cycle;
Foreign buyers maliciously drive down prices, using large orders as bait, constantly breaking through the price bottom line of enterprises;
If this continues, when prices reach their limit, another big stick from abroad will swing over at the right moment, which is "anti-dumping" sanctions. The yacht industry will have to face a dead end. So, how to respond? In fact, it is quite simple. First, strengthen industry self-discipline and actively promote the development of industry associations to play their coordinating role and avoid vicious competition; secondly, focus on quality and new product research and development to win pricing power.
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