The Pressure of Enterprises Shouldn't Be Taken by Consumers-Thinking from the Price Increase of Meizu Box

On December 26, 2016, Meizu Technology released a message saying that the price of the Meizu box was adjusted to 399 yuan. There is also a wave of discussion on the Internet. With the rapid development of science and technology, the cycle of replacement of electronic products has become shorter and shorter. Especially for digital products such as mobile phones, some products have even been sold for less than a year and soon replaced by new products. The strategy is to cut prices and clear the way for a new generation of products.

The above two boxes are priced at 299 yuan, but also did not increase prices. And here we must pay attention to, these two boxes are 2G of running memory, in Android hardware, we all know that running the memory of the entire system to play a decisive role.

As for other brands of boxes, prices are even lower, let's not say for the time being, in which many manufacturers have not raised the price increase, Meizu Technology releases price information, no matter what the reason is, it is undoubtedly unfavorable for its brand. .

Of course, the Meizu box has its own advantages that cannot be ignored. The first is exquisite workmanship. To be fair, the Meizu box is the box product with the highest face value in the current market.

Meizu product design has always been more admired by myself, including mobile phones, bracelets, watches, and the box discussed today. The superb design and workmanship are also commendable. For example, the mobile phone earliest developed metal body, the hidden screen of the wristband, etc. The shape of the box and the workmanship design have indeed won a valuable point in the competition, detached from the traditional square design, placed in the living room and become a handicraft.

After that, it is a key to find the function of the remote controller, which also brings convenience to the user in use. Especially for the users who are used to throwing remote controllers, the TV remote control learning function also eliminates the need to use two remote controllers to watch TV. Troubles.

Continue to analyze in detail the reasons for price increases. The reason given by the official is that the cost of BOM caused by the increase in raw material prices has soared. The reason is probably due to the memory of the PC market and the price of SSDs. Now the price is even 40% higher when compared to October. Flash memory makers such as Samsung and Hynix have jointly reduced their production capacity, and the increase in selling prices has led to a surge in the price of flash memory chips.

If you continue the analysis, it is the devaluation of the renminbi. Most of the components of the Meizu box come from foreign countries, and transactions basically use the US dollar as the international currency. The exchange rate of the US dollar against the renminbi soared from the level of 6.7 in October to nearly 7 now, an increase of 5%. The impact on costs is also very large.

After the configuration comparison is complete, the advantages have also been put forward, and the reasons for price increases have also been analyzed. Then the question is, should Meizu box price increase in the end? What will be the impact of price increases?

First of all, the Meizu box is very late in the market, and its market share is very small. Under the circumstances that the old box has a large market, the Tmall box, the millet box, and the Leshi box have long been rushed into and occupy certain parts. market. Moreover, in the process of upgrading, the previous generation of products also has a certain price reduction, and each brand has a number of boxes for users to choose, plus Xiaomi Leshi also produces smart TV products. Meizu box as a latecomer, when the sale of 299 pricing personally think that already does not have much competitive advantage, Fortunately, there are face value and special features to attract users, can be considered a box industry highlights, if you really want to As the box market has picked up, it should be catching up.

Unexpectedly, in the fiercely competitive market, Meizu was the first to raise the price, and the price rose by 100 yuan. The price increase was as high as 33%, which was a bit disappointing.

In fact, I was still relatively optimistic about the Meizu box, when Meizu released the first mobile phone, I was very concerned about that year because of lack of funds, did not seize the market in advance, and poor shipments that year really make people feel bad. Later, after Ali's capital injection, the money was really different. Crazy new mobile phones were released, and the cost performance was still very high. Plus the smooth flyme system's blessing was just like a duck. In the fierce competition, it was also a bloody way to win. A place.

I am not a fan of a certain brand. I think that the appearance of electronic products is relatively objective. The rise of Meizu is really gratifying. After all, products are service users, and users get high-quality product experience at a low price. This is the most fundamental thing. , is also the core of enterprise service users, get people's world, a large amount of users, corporate profits naturally hit, this is a win-win thing.

We will continue to see whether the bright spots of Meizu can support this 33% of the price increase.

First, Yan value work. The worthy face value is worthy of recognition. However, the price at the time of sale is not very low. Compared with other boxes that have been allocated, you already have a part of your price. Then I think this is the reason for the price increase. invalid.

Second, the remote control has special features. One key to finding a remote controller is really a bright spot. Unfortunately, most of the time it is as a fresh function. Except for some users who are used to littering the remote control, most users have a fixed placement habit. The use of television cabinets or coffee tables and television sets for so many years is very rare when remote controls are not available. Voice control, this feature is indeed worthy of recognition, and now the rest of the box products basically need to use a mobile phone or a separate remote control to achieve voice control, and voice features can indeed bring great convenience to the operation, plus one point. In general, in the case of cost predicament, it can be used as one of the reasons for the price increase, but it is still not enough to prop up the 33% increase.

Third, the increase in the cost of raw materials brings up costs. This point of view is very simple, no one company price increases, this reason is completely untrue, the company itself should have a certain degree of pressure, and should have to deal with the upstream material manufacturers to increase the price of the plan. Moreover, bulk purchases of raw materials are contracts, and prices in completed orders generally do not change with market prices.

After comprehensive thinking, the individual concluded that the price increase rate and reason for 33% were completely unconvincing.

Then, we guessed why this amazing price increase of Meizu Technology is in the end.

Guess one: The Meizu box market is not particularly good, and shipments are not particularly large. This point, from Jingdong and Tmall's sales can probably guess one or two.

Judging from the amount of comments, sales are really bleak, perhaps Meizu Technology believes that box products are not the main product, coupled with the original not high sales, perhaps the price fluctuations caused by the fluctuations in the entire market feedback is not a big reason, and sales of The rate of downturn costs will slow down, and prices will have to be quickly recovered.

Conjecture 2: From the cost factors given by the official, it may be that after the calculation of the market, the first batch of boxes produced is not too much, and the amount of raw material orders will not be too large. When the next batch of production is continued, there will be no sufficient reserves. Materials, need to re-order to buy accessories, and this time coincides with the price of accessories, the cost of re-production has exceeded expectations, had to raise prices to recover this part of the cost.

So what are the consequences of price increases?

Consequence 1: The sales volume is even more sluggish. The products that originally depended on the face value and the highlights competed. After the price increase, the price/performance ratio became lower. Those users who originally chose to hesitate to use the box naturally want to abandon the Meizu box and turn to more cost-effective products.

Consequence 2: The price increase brought about by the fallacy, more or less will have some negative impact on the Meizu brand, will lose some users or even fans, but fortunately just the box, if Meizu mobile phone prices, then the impact Perhaps not so much now.

Consequences 3: Personally think that is a bit more powerful, that is hurt the heart of kerosene! The accumulation of fans is not a day or two, especially keen kerosene, along the way, those iron powder, every time you release a new product must buy an old user, I think that the product value lies, experience comfortable, wanted to start, Suddenly such a rise will inevitably lead to loss.

In short, the 299 pricing does not know whether it exceeds the BOM cost of the product, but after rising to 399, the profit margin of the Meizu box will not be too small. Personally think that Meizu this time is a price increase for a small product, but its practice is indeed not considered, to take the recent rumors of loss of funds LeTV, regardless of product quality, on the basis of the original price is very low No price increase. Should Meizu reflect on this?

In any case, the price should not rise, and the pressure on the company should not be borne by the user!

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