Sharp returns to China to be a price killer Low price strategy is the last straw?

　 Sharp returns to China to be a "price killer"

Low price strategy is the last straw?

■ Our reporter Jia Li

It is reported that Sharp may release its new 8K TV in China before Japan recently to seize the market. However, at the moment, Sharp's situation in the Chinese market is slightly embarrassing. Its mobile phone and other consumer electronics businesses are being forced to shrink in an all-round way, and the low price policy implemented after Hon Hai became the owner has failed to save its lost market share.

Recently, some insiders pointed out that Hon Hai wanted to use the Sharp brand to wean Hon Hai off its dependence on professional electronic OEM after it took over in August 2016, but this strategy was unsuccessful. On the contrary, in its low price strategy for the Chinese market, Sharp brand was deeply hurt and labeled as "cheap".

In this regard, an insider of Sharp said: "Hon Hai has been helping Sharp with its strategic transformation." At the same time, it emphasized Sharp's attention to the Chinese market.

Industry insiders believe: "At present, Sharp is facing the situation of being besieged from all sides. Its panel business is threatened by domestic manufacturers BOE and CSOT. The TV business lacks innovation and its advantages are losing. The mobile phone business may withdraw from the Chinese market. Sharp, which has fallen off the altar, has now been marginalized and is facing a crisis."

Sharp's dilemma

A year ago, Sharp announced the release of full screen mobile phones in a high-profile manner, and thus returned to the Chinese mobile phone market. However, a year later, it has been reported that Sharp has "or withdrawn from the Chinese market", and the survival situation of Sharp mobile phones in the Chinese market is quite difficult.

An insider said: "In recent months, Sharp has been constantly deploying global resources, and its mobile phone business in China will also face a wave of adjustment. At present, Foxconn has mastered the resources of Sharp and Nokia two mobile phone brands, and it may abandon one brand in the commercial mobile phone market, shrink the battle line and concentrate resources, and focus on the development of the other."

Two years ago, Foxconn acquired the Nokia brand from Microsoft, making the brand return to the smartphone market after years of silence. Since then, Foxconn has invested too much resources to promote the revival of the brand, but has not achieved ideal results. Less than a year after the acquisition, Foxconn lost more than $100 million.

The situation of Sharp mobile phones is also worrying. One year after its return to the Chinese market, it gradually faded out, and even was spread or withdrawn from the Chinese market.

Can the low price strategy work?

Sharp's decline is not accidental. After being acquired by Hon Hai, it was crowned as a "price killer" because of its low price strategy, but the low price strategy just highlights its disadvantages.

Major General Ding, an industrial economic analyst, said: "Nobility is not expensive, which is a major product and brand strategy of Sharp after Hon Hai entered the market. Aggressive prices have led to the growth of TV sales, but Sharp's high-end quality and technical strength have not been perceived by consumers. 'Nobility' has not been clearly reflected, which will dilute the Sharp brand. The former 3S (Samsung, Sony, Sharp) It also tends to disintegrate. Sharp has always been poor in diversification strategies, and its TV products are perceived most by the outside world. Hon Hai's impact on Sharp is significant, especially in the Chinese market, which has reactivated Sharp TV. However, due to its strong OEM gene, Hon Hai still lacks experience in brand building and maintenance. "

Editor in charge: Li Feng