(Yicai) Nov. 13 -- Some Chinese home appliance manufacturers cut prices while others tried to draw buyers by improving service experience to boost sales during the recent Double 11 shopping festival and match last year's consumer stimulus from national subsidies, which were less intense this year, among other factors, according to several industry insiders.

The amount of national subsidies allocated this quarter was less than that a year earlier, leading to more consumers taking a wait-and-see approach, a senior executive from a television maker told Yicai. Some home appliance makers cut prices to stimulate sales, but this increases the profit pressure they face, the person added.

Online and offline retail prices of major home appliances, including TVs, refrigerators, and air conditioners, dropped from Nov. 3 to Nov. 9 this year compared with a year ago, according to data from market research firm AVC.

Sales growth of home appliances, especially large appliances, was somewhat constrained during this year's Double 11, Guo Meide, president of AVC, told Yicai. Part of the reason was that home appliance purchase subsidy activities that began in the second half of last year have already used up some of the demand, Guo said, adding that price comparison strategies implemented by e-commerce platforms have also put pressure on manufacturers to continue lowering prices.

Since the overall market size has not expanded, price wars will only further erode the profitability of home appliance makers and retailers, Guo pointed out. "The growth model that relies primarily on lowering prices as a market expansion strategy has become a thing of the past, with the future lying in guiding consumption through new and trendy products."

The profit margins for low-end products are already low, so there is limited room for price cuts, the TV firm executive noted, adding that this led to the price of some mid to high-end products plunging during this year's Double 11.

For example, the price of a 55-inch Mini Light-Emitting Diode TV on major e-commerce platforms like JD.Com was less than CNY4,000 (USD565), or about 20 percent less than it was during the mid-year promotional season.

This year's Double 11 shopping gala was the coldest for Jiangxi Nanchang Yonghua Home Appliance in recent years, Wang Yang, the person in charge of the company, said to Yicai. Part of the reason is that the retail price of certain products on major e-commerce platforms was lower than the firm's purchasing price, Wang pointed out.

"Double 11 online and offline sales both fell this year, with the average price of products also dropping," said a home appliance retailer in Central China. "Home appliance manufacturers and distributors have no choice but to respond by cutting costs."

A home appliance retailer in Northwest China has begun integrating its products with home goods to cope with the overall decline in demand, it told Yicai.

During this year's Double 11, the price of air conditioners fell by 5 to 15 percent from a year ago, Gan Jianguo, general manager of HarmonyOS Connect Meipont Intelligent Air Conditioner, said to Yicai. The company primarily aims to attract consumers by offering more smart products, as well as additional services, including a 10-year warranty, Gan added.

Editors: Tang Shihua, Martin Kadiev