Price is the core of the entire marketing strategy. In the traditional marketing model, companies always do everything possible to squeeze competitors and seize market share by depressing the price of commodities. This “ price war ” is often extremely cruel, among them the losers. There may be exit from the market or even bankruptcy. The winners may also be overwhelmed. Although they have won competition, the fierce price war makes their business activities totally unprofitable.

However, in the automobile and parts industry, there is always such a cruel side. With the increasing pressure of market competition, many companies use their prices to overwhelm each other to beat their opponents, but seldom consider managing each other in terms of quality and quality.

In terms of the automobile market, China has become a major automobile country, and it is absolutely necessary to bring fierce competition in the auto market. After all, after-sales service is an important market for all businesses, and its businesses are favored by consumers when prices are reduced by accessories. In order to improve their own competitiveness, they have to compress the profits of the accessories, lower the price of accessories, in fact, this is only the manufacturers to respond to market changes and made frustration adjustment, and the interests of this game in the interest of the game, in practice They returned all the benefits to each other.

Taking the filter as an example, there are currently more than 1,000 filter companies in China, most of which are self-owned brands. Despite the large number, only 30 major producers have been included in the statistics of the entire industry, and there are even fewer companies that have their own brands and improve their sales network. Although the current domestic filter industry market is fiercely competitive, the high-end filter market is basically occupied by joint ventures and foreign-funded enterprises. Liu Wanbin said that in this situation, self-owned brand filter companies should establish a competitive advantage that goes beyond product and price. However, at present, the competition among self-owned brand enterprises of domestic filters is mainly price competition. This competition situation will inevitably jeopardize the development of the entire domestic filter industry and affect the prospects of the filter industry.

The price war has made many fake and shoddy products continue to thrive in the market. Some auto parts companies specialize in selling counterfeit and shoddy products. Because of their low prices, they always have a place to survive in the market, causing tens of thousands of auto parts companies to spring up. Appeared, most of them are small, many in quantity, unbranded, and have low awareness of quality and safety. In addition to the extreme lack of consumer knowledge of automotive parts and components, it was decided to rely on prices to select products. Therefore, many parts and components companies and distributors are driven by profits. To reduce costs, some cheap counterfeit products and sub-factory accessories naturally integrate into the market.

Many of the auto parts industry's price competitions occur because companies think that price reductions can increase their market share and profits without considering that doing so will cause price competition to affect the market as a whole. Unordered price competition will only bring about chaos in the industry. The decline in the image of the industry will not increase market share and profits for a certain company as expected.

Enterprises should work harder to improve product quality, after-sales service levels and brand awareness, and consolidate and expand existing positions in the international market, rather than foolish competition from prices.

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