"Rising prices" in the rabbit can stop? Against the market price cuts played the industry's strongest tone

Since November last year, a news that “Shanghai fresh products are expensive in Hong Kong” has played the prelude to the 2010 price increase song, and then the wave of price increases raided the home industry. As an important raw material in the textile industry, cotton has risen more than 50% in a few weeks and has once become a leader in agricultural product price increase. Due to the cost of raw materials, it is not just the home textile industry that is plagued by the price of finished products. Redwood furniture has also been rising in price in the past two months. According to the reporter, since the fourth quarter of 2010, the price of mahogany furniture has entered a period of rapid growth, and even a "one-week price" phenomenon has emerged. Mr. Zhang, the owner, told the reporter that when he went to a famous mahogany furniture store in Shanghai for the first time, he saw a set of mahogany desk chair with a price of 6,000 yuan. After a week’s consideration, he decided to purchase the desk and found it when he went to the store. The price has risen to 8,000 yuan.

Although the real estate market in 2010 was intervened by two rounds of control policies, the rate of increase in house prices and the volume of transactions showed a significant slowdown, but this did not cool the upsurge in the price of the home market. The price-raising drama staged at the end of the year is only a trailer for the home price appreciation series in the next few years. In the process of visiting the market, many consumers expressed their understanding of the price increase of furniture and building materials. "CPI is rising every month, and furniture prices must also rise." However, will rising CPI have a direct impact on home companies? How much is the correlation between raw material prices and home product prices?

Is "price increase" a reason or an excuse?

Has the price increase become the general trend of the industry? The reporter interviewed the furniture industry stakeholders with the highest price hikes recently on the topic of price and cost. Although the three old-fashioned topics such as “raw materials, labor costs, and export trade risks” continue to plague the furniture manufacturing industry, industry insiders say that this cannot be the reason why the prices of products have risen in 2011. According to relevant sources, due to the influence of CPI, the cost of raw materials such as wood and metal will increase in 2011, which will indeed affect the selling price of solid wood furniture and metal furniture. But for soft furniture, its manufacturing costs have not been affected. The price not only does not rise, he believes that, with the arrival of the industry reshuffle, the price will become the main battlefield of brand competition, the new round of price war is about to come to an end.

CPI goes up with furniture and building materials

As the industry insider points out, international brands have been very active in the Shanghai market in 2010. Especially in the mattress and upholstered furniture industry, the success of overseas companies has aggravated the competition in the industry. Due to the benefits of the 2010 *** value increase, the prices of many international brands have become more and more “close to the people”. Yang Guangming, director of the retail division of Imonian Mattress, said in an interview with reporters that Imon's next goal is to develop more family-friendly products. During the Golden Week in October 2010, some foreign brands that once disdain to participate in promotions also advertised "On Sale." From these market phenomena and professional analysis in the industry, it is not difficult to distinguish between "reasonable price increases" and "irrational price increases."

"Reverse Union" Cost Control Method

With the rise of the main theme of price hikes, these industries and companies that have “falled prices” have played the strongest voice in the big home ecosystem. How to maintain the price advantage in the fierce market competition, how to digest and avoid the operational risks caused by the increase of costs from the inside of the company is a major issue that every company must solve in 2011.

In recent years, several rounds of price increases for wood and board have made wood flooring companies the industry with the greatest risk of cost risks. Large companies can effectively avoid the problems caused by rising costs through financial and management measures. However, those small and medium-sized enterprises can learn more about the value of policies. A number of manufacturing companies with solid wood floors were gathered in Nanxun, Zhejiang Province, and the prices of raw materials that were rolled out in recent years were increasing. Many small and medium-sized enterprises in Nanxun had not implemented the “throttle” policy, but on the contrary, a new factory building had emerged. trend. Santa's floor is one of them.

International brand promotion busy during Golden Week 11

The reporter interviewed Lu Dan on Santa Fe floor. He gave the reporter a detailed account of Santa's cost account. Shengda flooring only produced solid wood flooring before 2006. Since 2006, it has started to build new production lines. The total cost of land, plant and production line is nearly 20 million yuan. This is equivalent to selling 200 to 3 million cubic meters of floor-refining profit, and the market cycle needed is about 2 to 3 years. Although corporate costs have increased in the first two to three years, the new reinforcements have helped the entire company reduce its operating costs. Lu Dan told reporters that the launch of the enhanced series of products has made dealers' business better. With the continuous increase in the price of solid wood flooring, laminate flooring has become the “best choice” choice for many consumers. It not only provides noble solid wood flooring, but also provides economical and practical laminate flooring, so that dealers will not miss business, but also makes Santa Fe develop a road for the dealers. In recent years, the smooth and huge channels have greatly improved the profitability of the company. If you do not build a new reinforcement line? Lu Dan told reporters that if there is no 20 million plant cost, Santa's marketing cost is only about 20 to 300,000 square meters of solid wood flooring sales. However, this fee is a fixed investment in building a brand, and strengthening the product line can also share this part of the cost. One advertisement and two utilities are the practices of savvy companies.

Although the price hikes in many industries are still very high, companies like Santa pay attention to consumer demand and do not ignore the existence of large and mid-to-low-end markets. They will win applause from consumers in the “ups” market. .