PND market downturn? Fierce price war started quietly
iSuppli's automotive research team has been tracking the price of Black Friday portable navigation devices (PND) for the past few years, because this is an important indicator of the PND commercialization trend. This year, Supplier found that more than 20 retailers sell about eight brands across the United States.
This article will focus on traditional retail stores rather than online sales channels, because the online retailer Cyber ​​Monday's transactions are not significantly different from Black Friday. The most cost-effective deals can be found on Black Friday, not on the Internet.
TomTom and Garmin
The TomTom ONE 125-SE, sold by Wal-Mart for $ 59, is the cheapest model this year. This marks the first time that branded products have become the lowest-priced products.
Of the approximately 20 products currently sold by TomTom in the United States, more than 10 are available at multiple retailers, including department stores and office supply stores. Two models were newly introduced at Walmart for Black Friday. The average discount of TomTom products in retail stores is 45 to 47%.
The average discount of Garmin products at 15 retailers is 40-42%. Garmin's cheapest model is priced at $ 69.97 and is available at hhgregg. The entry-level model nuvi 205 from Best Buy is priced at $ 99.99, while the same model sold by PepBoys, Sears, OfficeMax, and Micro Center is even cheaper by $ 10.
A few years ago, Garmin ’s cheapest model was $ 10 or $ 20 more expensive than TomTom ’s cheapest model, and this year is basically the same. Garmin's cheapest model has been priced from US $ 110 to US $ 120 a few years ago. Garmin is still relatively restrained and has not significantly reduced its prices so as not to erode its average selling price (ASP) and damage its brand image.
Garmin's strategy has worked well in the past two years, but if its PND inventory is higher than in the past few years, Garmin may be heavily discounted at the last minute. In other words, PND will not sell out as before, so Garmin's strategy may fail this year.
Magellan and Mio
The average discount rate of five Magellan products at eight retailers is 44%. Prices for these models range from $ 79.99 to $ 199.99. Mio products currently sold in the United States are using existing Magellan distribution channels, including non-big stores (big-box), depending on the product line. However, there is only one Mio product, Moov M400, which can be won at RadioShack for $ 80 with a discount of 47%.
Other second-tier brands
This year, only three second-tier brands Rightway, Nextar and Maylong appeared in retail stores. Rightway's RW400 PND is priced at $ 59.99, while the manufacturer's suggested retail price is $ 149.99. This is the second lowest price on this year's Black Friday PND list. Its features include speech synthesis, pre-installed US maps, fuel saver (fuel saver) and fuel cost calculator functions, built-in media player and media card slot.
Nextar only has one model for sale in two non-consumer electronics stores, OfficeMax and ShopKo. Its 4.3-inch fourth-quarter model is $ 20 more expensive than the cheapest model sold by TomTom at Walmart.
The Maylong Group is licensed to use the "NavigaTIon for Dummies" brand, and like last year, has set its target at the pharmacy. This year the company offers two models, one is the FD-220 GPS for $ 69.99, and the other is the 4.3-inch FD-420 model priced at $ 79.99.
in conclusion
The main trends in PND prices for Black Friday this year include:
The TomTom product sold by Walmart for $ 59 is the cheapest model of all. This marks the first time that branded products have become the lowest-priced ones. It is hard to see second-tier and anonymous brands participating in the Black Friday promotion this year, and these brands were usually the price-cutting pioneers in previous years. Retailers may have realized that they must use more well-known brand products to attract more PND consumers. This also confirms iSuppli's view that mass manufacturers are winning in the PND industry.
Last year, PND was hot, and the large sellers selling Nextar wanted to attract customers to the store. This year the situation is different because PNDs are no longer so popular. It can be said that most consumers prefer to buy well-known brands rather than white-brand products. Now, TomTom and Garmin's products are very cheap, and white-brand products are nowhere to be accommodated, because the price is their main weapon.
Obviously, the price reduction of PND this year is greater than last year. The cheapest model this year is $ 20 lower than last year. The discount rate of each retailer ranges from 22% to 64%, and the average discount rate is about 45%. Last year's Black Friday sales show that PND suppliers learned the lessons of 2007 and are more restrained in reducing prices. The price of PND in Black Friday in 2008 was almost the same as in 2007, and there was no sharp price cut in 2007. In fact, the most cost-effective place to buy a PND in 2008 was a non-traditional PND dealer, with a price of more than $ 80.
iSuppli believes that the entry-level PND price will continue to fall in 2010, but the overall PND price will not fall too much, because the networked PND (C-PND) will partially offset the decline. In other words, the product structure will tilt toward C-PND, which helps balance the overall price.
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