China has the cheapest LCD TV pricing in the world due to lower cost for items such as labor, operations and dealers.
For a 32-inch LCD TV (with a resolution of 1,366×768), the cost to dealers for a Chinese-brand unit is only US$ 81.70, compared to a cost of US$225 for a TV made in the rest of the world (ROW) and the US market.
The gross margin of retailers in China is only 9.1%, as opposed to 25% for that in the ROW and US market.The labor and operating cost for making a 32-inch LCD TV in China is about US$2 and US$ 3.40, respectively, compared to US$6.90 for labor costs and US$14.70 for operating costs for a TV made in the ROW and the US.
|
Typical 32-inch LCD TV cost structure comparison (US$) |
|
Item |
Made in China |
Made in ROW/ |
|
Chinese brand |
US market |
|
Prices from OEM to brand |
464.5 |
521.3 |
|
Brand NSB (net selling basis) prices |
650 |
675 |
|
Before channel promotion prices |
633.3 |
675 |
|
Dealer |
81.7 |
225 |
|
Brand margin (gross margin) |
14.60% |
16.50% |
|
Retailer (gross margin) |
9.10% |
25% |
|
MSRP (average street prices) |
715 |
900 |
Source:佚名