#头条创作挑战赛#
Let's start with the first question:
At that time, the decline in net profit margin was mainly related to the decline in gross profit margin and the increase in selling expense ratio
In terms of gross profit margin, it has experienced a transition from first falling and then rising, among which, from 1994 to 1998, the gross profit margin decreased from 31.75% to 19.54%, and then, from 1999 to 2002, the gross profit margin rose steadily to 25.59%
In terms of the sales expense ratio, it has been rising rapidly, especially after 1999, and the increase has been very large.
The decline in gross profit margin is usually a sign of weakened competitiveness, and for Midea, what did it experience from 1994 to 1998?
Note that the period from 1994 to 1998 was the evolution of China's economy from inflation to deflation
After 1992, the domestic economic development accelerated, social investment rose sharply, and the investment in fixed assets increased by 44.4%, 61.8% and 30.4% year-on-year respectively in 1992, 1993 and 1994, setting off the highest economic peak of that era
However, due to overheated investment, there is an oversupply and a backlog of products. At the same time, the huge scale of investment has led to an overall shortage of means of production such as transportation, energy, and raw materials (including copper and aluminum), and prices have risen
As a result, the production cost of enterprises has risen, the price of products has risen, and the unsalable products have been exacerbated, and the utilization rate of the production capacity of many enterprises is about 50% (46% of color TVs, 43% of washing machines, and 34% of air conditioners), and the total value of products has exceeded 3 trillion, forming a buyer's market
In the face of overcapacity, an important business indicator is: price war.
At that time, air conditioning manufacturers fought a price war, and the first to provoke the war was Kelon
Soon, major air-conditioning manufacturers, including Midea, followed up one after another, giving profits to seize the market, the competition was extremely fierce, and their revenue growth continued to decline
In order to curb inflation, since 1993, the regulator has started macroeconomic control, adopted a double tight monetary policy and fiscal policy, tightened monetary policy, and increased the tax burden
After that, the willingness to invest declined, the willingness to consume declined, the market weakened, and the overcapacity was serious
From 1995 to 1998, the growth rate of fixed asset investment declined, the growth rate of total social zero declined, and at the same time, downstream demand was extremely tight, and the CPI fell from 17.1% to -0.8%
What's more tragic is that in the summer of 1996, the weather was unusually cool, which led to a more sluggish air conditioning market, and the price war started again, and the air conditioning dropped from 6400 yuan to 4280 yuan
The profit margins of the industry are constantly compressing. (In particular, from 1994 to 1999, because Qingdao Haier had a relatively large proportion of refrigerators at that time, and took the lead in launching fluorine-free refrigerators, the product was more unique, so its gross profit was rising)
However, note that since 2000, the gross profit margin of the same industry has been declining, while Midea has begun to rebound, why is this?
Answer: If the price is pressing, it must be extended to the upstream of the industrial chain.
Predict the follow-up and listen to the next breakdown
It does not constitute any investment advice, the stock market is risky, and you need to be cautious when entering the market