TV retailer rules out prick hikes
26/12/2003 17:57
A leading home appliance retail in Shanghai yesterday ruled out the
possibility of TV price hikes for next year in response to a recent market
anticipation that TV prices will go up sharply due to the rising costs in
manufacturing and marketing.
"We don't think such steep price rises are
possible," said Zhang Xinlin, general manager of Shanghai Guomei Electronics
Appliances Co Ltd, cited by yesterday's Shanghai Evening News.
He said his
store hasn't received any price rise notices from its TV suppliers so
far.
According to Zhang's analysis, price rise of TV making materials
expected for next year, particularly steel products, will fall in a normal range
and unlikely to result in price hikes of TV sets.
"Big domestic TV
manufactures are able to digest the edging-up making costs, as most of them have
a capacity of 6 million products valued at 8 billion yuan (US$967 million)," he
noted.
Showing confidence of this analysis, Guomei will start a one-month
promotion campaign this week, in which TV products will again be the center
target.
Some market analysts echoed Zhang's opinion and said the TV price
hike rumor is likely a promotion scheme that some TV makers create to boost the
ailing TV manufacturing industry, which has long been beset with rampant price
wars.
Jane Chen / Shanghai Daily news
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