Domestic instruments: low price is a double-edged sword

Low prices are double-edged swords

The low price of domestically produced instruments in our eyes has become its only advantage, and it has become a breakthrough point in the market. However, this is not a permanent solution. First of all, although it has won part of the market share, it has lost more potential customers, because low prices make us feel distrustful, and most people still have the idea that high prices will have good quality and win customers. Lost brand influence. Second, at the same time that domestic equipment makers have waged a price war, more losses have been made by the manufacturers themselves. Blind price competition has led many manufacturers to abandon the investment and development of new technologies, and low-cost investment. The output has become a common business philosophy for manufacturers by grabbing more market shares at low prices. Therefore, I believe that the idea of ​​low prices is a double-edged sword, low-cost competition is a nausea cycle. Excessively pursuing low prices will only temporarily bring short-term profits to the company, but it will lose more potential customers. In the precision instrument application industry, they mainly value the price of the instrument, the function, quality and accuracy of the instrument. The technical service is their most important aspect. To increase investment in product quality and performance, in order to occupy more market share and win the trust of more customers, this is the development direction of domestic equipment manufacturers.

Brand effect is the key

When we buy a computer, we think in our brains that HP, Dell, Lenovo, etc., will think when purchasing a camera, Canon, Nikon, Sony, Samsung, etc., when purchasing chromatography, Agilent, Varian, Shimadzu, Dai An et al. This is the brand effect, which brings the benefits of the company far greater than the benefits of low prices. When customers purchase precision instruments, they will unconsciously believe that the quality of a large brand of equipment should be bought by the brand's equipment. Because they can see the advertisements, news, activities, etc. of these imported instrument manufacturers in various channels, this creates a brand effect. The author believes that domestic equipment manufacturers, while ensuring quality, should increase advertising efforts and adopt more promotion methods to print their own company's brand in the concept of customers.

M & A acquisition can learn

We all know that in the automotive industry, China’s Geely’s acquisition of Volvo can be a successful big step. With the help of Volvo’s technology and Geely’s own financial strength, we can acquire a good origin through the acquisition of internationally renowned brands with profound technical accumulation. Completely change the bad image of China's self-owned brand cars starting from "imitation shows" and "cottage editions" overseas. Based on the technical origins of Miao Hongmiaozheng, he went to the world with dignity, making Geely become a famous brand in China and even the world.

The lack of domestically produced instruments is undoubtedly a technology, and acquisition may be a good way when technology cannot be broken. The acquisition and mergers and acquisitions of foreign instrumentation industry are not uncommon, and domestic instrument manufacturers also have many cases of acquisition, but never see domestic manufacturers to acquire foreign instrument manufacturers. Many home-made instruments are considered to be "shanzhai" versions of imported instruments from certain major brands. When there is a lack of technical strength and the brand effect cannot be achieved, the author believes that although there are many difficulties in acquiring well-known companies, it is unrealistic to purchase many well-known domestic companies.

In summary, the author believes that domestic instruments need to properly suppress the price war, increase investment in product quality and performance, combined with advertising media networks can be used to create brand benefits for themselves, when encountered development resistance, acquisition technology and brand It is worth learning from many companies.