What are the opinions of people in the industry about the “worth” of household products?

Recently, the news about the rise in raw material prices, rising freight rates, and rising labor costs in the home market has been heard, and this has led to discussions about whether the price of household products will rise. The impact of rising production costs is not known in the short term. In this regard, the author interviewed several home industry insiders to hear what they have to say about this matter.

What are the opinions of the industry's "value" or rising oil industry? (Photo source network)

Affected by raw materials, labor, freight and policies, the price of household products will be raised

Huang Haibin, general manager of Dyre Dynasty solid wood furniture, said: "In fact, the production cost of furniture is rising every year. Just like our cost of living, the price of ordinary people buying rice noodles is rising, but basically it is controlled by a reasonable increase. Within, there will be no ups and downs. The recent depreciation of the renminbi does have a certain impact on imported raw materials, including the introduction of national policies will affect prices."

Wang Jiantao, general manager of Boaoka cabinets, said: "This year, the country's overloading, overweight and ultra-wideness of freight vehicles have also led to an increase in freight logistics costs. It turns out that a car can pull 1,500 plates and now it will pull 1000, but the cost of running a fuel fee and toll is the same as before, so now buying a piece of sheet is about 5 yuan more than in the past."

Liu Jun, general manager of Xi'an Branch of Urban People's Decoration, said: "Not only is the cost of furniture rising, but the cost of decoration companies is also increasing. The price of copper in this year has increased by 20%, directly affecting the price of wires and cables. Our suppliers have also been adjusting prices, including workers' wages and shipping costs, which are basically raised every year."

Production costs increase but sales prices are not currently adjusted

If the cost of home production is rising, does it mean that for retail consumers, the price will rise?

Zhang Wenguang, general manager of Qumei Home in Xi'an, said: "The company has a small price adjustment this year, but it is limited to some products. Although the production cost of furniture is rising every year, the company has not adjusted the price for at least three years. It is to digest the increase in production costs by reducing management costs. After all, in the current market situation, the sales price will not be adjusted greatly, otherwise it will not be competitive."

Xu Jingyou, head of the West Security Friends Home, said: "I am also concerned about the price increase recently mentioned in the industry, but I have not received the documents of the head office on price adjustment, so the current price will not change."

Wang Jiantao said that although the price of buying plates has indeed risen, they will solve the cost increase by compressing their own profits, and will not pass the price increase to consumers. Liu Jun also believes: "Although the cost of all aspects of decoration has increased, at least it will not increase prices this year. Whether the price increase next year depends on the situation. If the price of the supplier has dropped, we can cover the cost. Will not raise prices."

The rise in the price of the industry is only the performance of market regulation and not marketing means.

For the wide-ranging voice of the industry's price hikes, some people think that it is a means of propaganda for enterprises, and promote sales by means of “intimidation marketing”, so that consumers can buy quickly before the price increases. Xu Jingyou said: "Although the price is increasing every year, this time the voice is very loud. It is not excluded that the upstream raw material manufacturers release the wind and want to try the market reaction. But as far as the current market downturn is concerned, Even if the cost rises, it is all self-digested by home furnishing companies and will not allow consumers to pay."

Xu Jingyou also said that price rumors are not necessarily a bad thing for the entire industry. If a small factory can't buy cheap materials, it can't produce cheap products. If their product pricing is similar to that of a big brand, consumers will definitely prefer a big brand, and a small factory will not survive. It is also a performance of the survival of the fittest, which can promote the optimization and progress of the industry. ”

Zhang Hua, secretary general of the Shaanxi Provincial Furniture Association, said: "The rumors of price increases cannot be said to be marketing means, because in the case of a bad market, price increases are not good for enterprises, but they will lose market share. Especially in recent years. The demand for environmental protection of products has increased, and many companies have to replace new production equipment. Even without the rise of raw materials, the cost of the company itself is increasing. The price change is only the performance of market regulation, not a marketing tool."

(Source: China Business News)

Baby High Chair

Baby High Chair,Baby Safety Chair,High Chair For Baby,Baby Table Chair

Zhejiang Lamon Technology Inc. , https://www.baby-chaires.com