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What is the situation of the wardrobe industry at the same time that most household products are "price-adjusted"?
In recent years, rising raw material prices have been a hot topic in the home furnishing industry. The increase in operating costs of downstream industries will definitely affect upstream companies. Then, at the same time as most home products "price adjustment", what is the situation of the wardrobe industry?
Raw materials rose in stock as buffer
The rise in raw materials has led to rising costs, which is a nightmare for the home industry. It is understood that after September 1 this year, the price of sponge has risen three times in a row, and the price increase has reached 30%-50%, and it is still in short supply. The trend of price increase is still obvious!" The household goods said. The news of rising prices has just come out, and many corporate people have begun to calculate the cost budget for recent production. Especially in the current decline in the overall profit of the home furnishing industry, the rise in raw material prices has increased operating costs. According to industry insiders, the future home industry will enter a "differentiation period."
It is reported that due to the rising factors of raw material prices, the prices of some branded homes in Guangzhou, Nanjing, Beijing and other places are likely to rise across the board after the 2017 Spring Festival. "At the end of the year, most brands' prices are relatively stable, and they will not be adjusted for the time being." A market teller told reporters that the end of the year is a key period for many overall home brands to rush sales, discounts, buy gifts, group purchases, and many other preferential methods. Both will provide consumers with a "gold rush period" before the price increase. "Mainly because of the inventory, it can be used as a buffer." A person who runs a solid wood brand home said that the inventory is too much capital and space. If it is not digested as soon as possible, it is impossible to raise prices. Throughout the country, home furnishing companies are facing the cost pressure of rising raw material prices.
" Overrun order" has become an important factor in the overall rise of the wardrobe industry
Some home sales outlets said that the recent peak season in the home market, when the price increase may damage a lot of business, the opening of the market will adversely affect the business, so the price has not yet increased. However, due to the impact of raw material price increases, profits are becoming less and less, and may become a node for price increases during New Year's Day or Spring Festival. In particular, on September 21 this year, the “Regulations on the Management of Overrun Transportation Vehicles in the Historyâ€, which was known as “the most severe overrun limit in historyâ€, was officially implemented. The transportation department implemented a new round of “strike hard†for overloaded vehicles, and many industries relied on “overloadingâ€. The hidden rules of compression costs were all broken.
In the face of rising pressure on raw material prices, the home market is ready to adjust prices. At the manufacturer level, the impact of rising logistics and transportation costs may be greater and far-reaching. A home furnishing manufacturer said that the introduction of over-limits has improved road traffic safety, but it has brought about relatively large cost pressures. The industrial chain cost of the entire wardrobe industry has risen structurally. Enterprises cannot afford the cost increase alone. Wardrobe price adjustment, the pressure of future home prices is still very large.
Wardrobe companies or "price adjustment" before and after the Spring Festival to accelerate the reshuffle of the wardrobe industry
During the period from the end of the year to the Spring Festival after the New Year, the labor costs of the decorators such as masons, carpentry and painters will rise to varying degrees. However, this year, the wave of rising labor costs has not yet arrived. As the home market, especially the building materials and home procurement market, was in the peak season, the reporter learned in the interview that the home improvement is a process of long consumption cycle. This time, the price increase of raw materials has a certain social background and the price increase period of the material itself, but if Rapid price adjustment, for those who have already "water storage" (accumulated source), it is easy to break a lot of business, plus some material manufacturers have implemented price bundling agreements with home improvement enterprises, price increases are not easy to implement immediately.
Faced with the pressure of rising raw material prices, many wardrobe brands are brewing price adjustments. Affected by the price increase of raw materials, profits are becoming less and less, and will become the node of price increase during New Year's Day or Spring Festival. However, people in the industry pointed out that for a long time, one of the direct results is that the entire wardrobe board industry has reshuffled, and will intensify the brand of the flooring industry into a "differentiation period." In the future, big brand chambers will fine-tune prices, but they will have less impact on the company itself. After all, there are certain customer groups to support, and the future of small brands will become more difficult.
In the case of rising costs, the market environment of the home industry has also undergone great changes. At present, the biggest impact of the rise in timber prices should be some low-end brands, the impact on the price of some big brands of household products is relatively small. The re-shuffling of the home industry brand into the "differentiation period" is getting closer and closer, and the future of small-brand brands will become more difficult. For home building materials companies, how to deal with the pressure of rising costs is the most fundamental.