LeTV's price hikes to friends has made a big problem

Today, a "LTV TV model price announcement" detonated the color TV industry, said Internet companies will only price promotions, not to mention, the Internet giant LeTV unexpectedly in the color TV industry shouted the first price increase, so that those Only from an angle to look at Internet companies' eye-popping.
The LeTV announcement stated that the price increase is “This year, due to the increase in the average panel size leading to increased cutting costs and the impact of comprehensive factors such as the earthquake in Taiwan, the supply chain of the upstream supply chain is insufficient, and panel prices continue to increase. Subsidy hardware, negative profit pricing model, but due to panel prices rising too fast, the amount of single TV eco-subsidy hardware also continues to increase, has exceeded our ability to ecological subsidies, in order to ensure the company's long-term operations, better sharing In the eco-screen world, we decided to increase the price of the fourth-generation LeTV Super TV models by RMB 100-200.”
The interpretation of LeTV’s announcement is not difficult to find. The first is that the rise of color TV panels is affected by multiple factors and continues to rise; while the second LeTV is adopting an ecologically-subsidized negative-profit pricing model, continuing panel price increases have exceeded the ecology. Subsidy capacity; third on the fourth generation of music as part of the super TV model prices, the price increase is only 100 yuan -200 yuan.
The price of 100 yuan -200 yuan is what concept? I consulted, LeTV launched in April this year as the fourth generation of Super 4 X55 Curved price 4999 yuan, in accordance with the rise of 100, then the price increase is only 2% only, is the price increase of 200 yuan is only 4 % only, it is impossible to make up for the loss of panel prices.
Therefore, it can be said that LeTV’s price increase is a great mystery, and there are certainly many articles hidden behind it. It's just hard to guess

Since the beginning of this year, color TV panels have been under pressure to increase prices. They only need to pass the time to complete machine manufacturers. One is the increase in the average size caused by demand, while the increase in the average size leads to global capacity loss, and each additional inch of consumption. A production capacity of 8.5 generation line; Second, this year, a magnitude 6.7 earthquake occurred in Kaohsiung, Taiwan. The epicenter was located in Kaohsiung, where a number of panel makers were assembled. This resulted in the production capacity of Taiwan's panel makers being affected. Third, Samsung shut down a 7th-generation line, resulting in a 40-inch capacity loss of nearly 30-40%, and the introduction of new Samsung technology was not achieved. The production capacity of Samsung VD Division originally planned to be reached has not been reached, and the Samsung VD Business Unit has shifted purchase demand to other panel makers, eventually opening a high price. In addition, at the end of 2015, almost all panel makers suffered a total loss. From the perspective of capital markets and operations, they also accumulated the incentive for panel prices.
LeTV explained it very clearly in the announcement. It is due to the above reasons that the price of TV panels continued to rise. Especially since August, the major size such as 40吋/43吋 panels has risen by as much as 12%~15%, and the panel has occupied the cost of color TV sets. Most of them. 4% price increase simply can not make up for the loss of the panel price increase, which shows that the music as the price increase is not simply to make up for the loss of panel prices, which answer the answer will be given.
As we all know, LeTV can take negative interest pricing because LeEco takes ecological subsidies. Otherwise, according to actual costs, LeTV is losing money to sell television. In this context, LeTV adopted a price increase of only RMB 100-200, which is indeed puzzling. It also makes it difficult for competitors to decide whether to follow up or wait and see.
Follow up, the price increase rate is too small, and follow-up is also not helpful in reversing the operating loss; if you do not follow up, the loss of the hole will increase. What is important is that let LeTV not take the initiative to account for the price increase, but also set a benchmark for how much the price increases, and beyond this benchmark, it loses market initiative. Let's regard this strategy as a real solution to the industry and its friends.
As for the price increase of LeTV, we will examine the rate of increase again. How to look at it is like a marketing plan. If you really want to offset the panel's price increase through price increases, then raising such a point will not solve the problem and people will have to look for answers from other sources. In particular, the announcement was released before 9.19. It is common sense that it should be reasonable to pass information on price cuts. However, it must be known that LeTV has never been allowed to use common sense.

On the one hand, it is in the industry, to friends, and to the fans that controlling prices LeTV can do its job. Today, LeTV has carried out price increases and is the first in the industry. Dare to raise prices will require confidence and courage. At the same time, it also solemnly declare to the industry that after the panel prices decline in the future, LeTV will also make relevant price reductions according to the situation. When you want to rise when you are up, you are willing to fall when you fall. Isn't that more than sufficient?
On the other hand, LeTV took control of the timing before 9.19 to show to the industry and consumers that 9.19 was an excellent purchase opportunity before the price increase. After this village, there would be no such shop. Let those who are hesitant to purchase plans decide as soon as possible.
Of course, it cannot be ruled out that there is a trend of rising prices in the field of household appliances. Gree does not subsidize installation costs of RMB 100 per installer? In fact, this is another tactic to increase prices. It is only a potential, and it can win the reputation of caring for vulnerable groups. LeTV's price increases after 9.19, leaving a 9.19 time slot for users to continue to benefit. Such a marketing strategy is difficult to imagine in a traditional enterprise. LeTV is music, not a general enterprise.
The price increase of the panel will inevitably be transmitted to the whole machine manufacturer. In fact, for color TV companies, it is not Leshi who suffers from panel price increases, and the entire manufacturing companies are facing this pressure. But for most companies, facing such a cruel competition environment in the color TV industry can only be a matter of thinking about it. They absolutely cannot dare to say such a thing as LeTV, saying that the rise has really risen. In the final analysis, it is still a question of confidence.
So let's take a look at what LeTV is and how is it? In fact, LeTV has already said clearly in the announcement. LeTV promised in the announcement that after these models have increased their prices, they will continue to subsidize hardware and continue to set negative profits.
Let’s take a look at the fact that LeTV’s current ecosystem is extremely large, including three major areas: one is LeTV as the core of the smart family; the other is the LeTV as the core of smart phones; and the other is LeTV Supercar, the core of the Internet of Vehicles. In fact, it is the music ecosystem of “platform + content + terminal + application”.

It is the existence of such a system of mutual interaction, mutual dependence, and mutual reversal that the LeSports resources can be fully amplified and formed to support each other. Whether it is the past industry's most cost-effective price or the reverse of the first price increase today, it is LeTV's feedback on many ecological resources. This is not what any company wants to do.
Wu returned to the theme, stemming from the butterfly effect caused by the earthquake in Taiwan at the beginning of the year and finally responding to the mainland. From the first half of the supply of the panel began to be tight, and then the formation of panel prices in the second half, and prompted the color TV business machine prices, forming a cycle of the industrial chain. Among them, LeTV seized the opportunity to once again attract the eyeballs. It was indeed unexpected and actually reasonable.
Judging from the promise in LeTV’s announcement, the first LeTV considers negative-pricing pricing and the ecologically subsidized hardware's initial mindset; the second never sacrifices configuration to reduce the price and guarantee the product's entire life cycle experience; , share ecological value with users. It can be seen that LeTV's price increase is just a head start. The focus is still to attract users to 9.19, thus creating a third artificial holiday in e-commerce shopping that is in line with “Double 11” and “8.18”.
Letv's take the lead in price increase, as an action of marketing innovation, other color TV companies can only follow passively. LeTV will use this to start a new round of market operations and share the big screen ecological world with fans.

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