market dynamics
Why are motorcycles falling in price in China?
Release date:2021.03.18

For example, there has been a wave of price cuts in the motorcycle industry recently. Many people attribute this to the sudden surge of joint venture brands, but in my opinion, this is actually a phenomenon of self-optimization in the market to a certain stage, and it will become the norm for some time

Industry competition is more and more fully, rely on the sole, production advantage, policy advantage, information asymmetry, competitive and profitable space in a way that is more and more small, each manufacturer has a capacity for independent design ability, communication ability, research and development, at the same time supply chain is also becoming more mature, complementary resources sharing are more active, equal in vehicle functions, displacement, appearance or have distinguishing feature each, so the price has become a way for users to vote with their feet

Industry blind expansion, excess and homogeneity of serious, but the product strength is insufficient, so a lot of manufactured products have to rely on marketing to do the digestion, rather than the product flow of their own, initial channel will place an order, but if channels are unsalable, follow-up orders also failed to keep pace with, brand party will have to make an issue of on price to stimulate the market, is actually a unhealthy self consumption behavior


Product iteration cycle shorter, the motorcycle industry in China has not the past that a recruit fresh, an era of product can meet the market to make money, need to form a complete set of product to market, increase exposure to provide continued income, at the same time it also need to constantly upgrade quickly product line to meet the strategic competition a momentum, this product iteration more rapidly, the market demand change more frequent new scene, let some old enterprises especially in the production and management on the "bloated lag" enterprise, have to face the embarrassment of listed will be cut, otherwise it is difficult to survive

Short video and "We Media" have entered a steady period of traffic, and the new number of car players is slowing down. Car players are more and more clear about their demands, and the demands are more and more dispersed, no longer focused on a brand or a certain model, but more diversified. At this time, to obtain more exposure and transformation, price reduction is a good choice

Author's view:

The developed media undoubtedly accelerates the time and speed of the spread of the price reduction. A price reduction will become widely known in an instant, so it will form a chain reaction

See online statement said that the price won't last, personal opinion, this is the change of the industry is a can't insurmountable stage, motorcycle manufacturers from market orientation, production design, sales model, if you can't keep up with the market demand of this phase, so most of the "slow half racket", will slowly whittling away in price, and lead the enterprise will constantly in the process of reduction of some resources, to build their own brands and channel advantage, when the demographic dividend is more and more narrow, a large part of not involved with "heart" brand will exit the market, the industry will enter more fully integrate competition constantly reshuffle

But lowering the price will also hurt the loyalty of the customers who have already bought the brand, but the desire for survival of the brand side does not take into account these problems!