Bathroom encounter price price small brand undoubtedly "seeking death"

According to market research, some well-known plumbing and sanitary brands have raised their product prices without fear of market sales pressure. Industry insiders predict that more and more plumbing sanitary ware brands will join the price increase in 2011, and collective price increases will begin to show. Does the company really rise without fear of price increase? The plumbing and sanitary ware industry, which is regarded as “low-cost”, will face “difficulty” in raising prices. The collective price increase will affect the development of the plumbing and sanitary ware industry.

Analysis of Market Status According to relevant data analysis, in March China's consumer price (CPI) increased by 5.4% year-on-year, and consumer price in the first quarter rose by 5% year-on-year. Among them, cities rose by 4.9% and rural areas rose by 5.5%. In terms of categories, foods rose by 11%, tobacco, alcohol and supplies rose by 2%, household equipment supplies and maintenance services rose by 1.6%, health care and personal care products rose by 3.1%, and living rose by 6.5%. In addition, in the first quarter, China's industrial producer's ex-factory price (PPI) rose by 7.1% year-on-year and rose by 7.3% in March. In the first quarter, the purchase price of industrial producers increased by 10.2% year-on-year, rose by 10.5% in March and rose by 1% from the previous month.

It is not difficult to see from these data that, for sanitary ware manufacturers, no price increase is a matter of death. China's raw material market prices have risen by 10%, labor costs have risen by 20%, transportation costs have increased by 8%, and almost every aspect of business operations has risen in price. How can products not rise? More companies said that if they do not increase prices, companies can no longer survive, it is difficult to continue to base themselves on the market. Price rises have caused prices to lose significance. Recently, Xiao Bian visited the market and learned that Wrigley Plumbing sales personnel said: After receiving the manufacturer’s notice, Wrigley’s plumbing and sanitary products have risen in price after the New Year’s Day, and are about 10%-15% higher on the basis of the original price.” Not only that, the reporter learned from the relevant person in charge of the factory that the Wrigley Group’s Wrigley, Both Faenza and Anwar Plumbing have a full line price increase, and the average increase is not less than 10%.

In addition, Kohler and Toto still insisted on price increases in previous years. The former is between two and three hundred dollars, and the latter is between five and ten percentage points. Huida's price increase will be officially launched in March, or the increase may be 10%. Liang Jiansheng, director of Hengjie Plumbing Bathroom Marketing Center, said that Hengjie Plumbing Co., Ltd. will not adjust its price on existing products for the time being, but it will develop products with higher added value to gradually realize product updates. In other words, the new products launched by Hengjie Plumbing Bathroom in 2011 will be launched with a new price system.

The purpose of business operations is profit, reasonable profits = sales - comprehensive costs. In order to obtain profits, sanitary companies can only increase sales, or reduce overall costs. Sales = unit price × sales volume, price increase is to increase the unit price, but the problem is that sales may decline. Once the volume of sales declines, profits may fall as a result of the same overall cost. If the price rises, the price rise will lose its significance. Another option is to reduce the overall cost if the sales amount is not changed, but the overall cost is a complex combination of management costs, raw material costs, transportation costs, employee wages, site rental, depreciation of production equipment, and so on. For small and medium sized sanitary ware companies, the largest proportion is raw material costs, transportation costs, and employee salaries. At this stage, it is impossible for these three aspects to come down at the same time. Because oil prices have risen, transportation costs have only risen. All raw materials have risen more than 10% this year. In today's increasingly labor shortage, workers' wages have risen by 20%. Even so, some companies cannot start full-scale jobs because they cannot recruit workers. If companies cut corners, not only will the products lose their competitiveness, but their consequences may also be difficult to predict. These seemingly simple truths make some business owners uneasy.

In front of price surges, sanitary companies are faced with a dilemma that the active price increase is the dealer's favorite thing to do, because the purpose of doing business is to maximize profits, but passive price increases are just like unspoken rules, and people suffer pain and suffering. Price war is a weapon of commercial competition, but now the market is deserted. How can we still increase prices? Dealers are now unable to sell prices, prices are equal to their own death!

Expert analysis, small brand prices will no doubt find death. It is understood that Kohler, TOTO, Lejia, Hansgrohe, Wrigley, Hengjie, Jiumu, Apollo, Mediterranean, and other high-tech companies have all increased prices and the average increase of not less than 10 %, but some second- and third-tier brands are not brave enough to raise prices. Because these products are inherently lacking in market competitiveness, it is difficult for dealers to accept price hikes if they increase prices again. However, there are still many small and medium-sized enterprises that follow up their prices because they have no choice but to cut costs. This is only from the internal information of the production company. The terminal distributor has obtained another argument: “The problem of manufacturers not raising prices is not big, because the retail is already very small, and the price increase is just a matter of rising. Consumers' concern for bath products is not high, and many consumers are not aware of the increase in prices, but consumers are smart nowadays, frequent business discounts, and people really need to benefit, in this way, some people will When merchants launch promotions, they come to buy things. When a business launches a promotion, the company has some policy subsidy. The offset between the two is equivalent to no price increase."

This may suffer from those bathroom companies with insufficient strength and few outlets, because they are unable to support the crisis. There is a small bathroom cabinet company in Foshan because one production worker was careless and saw a finger cut by the machine. If the compensation required to pay 500,000, the boss ran away with no money. There is also a bathroom company in Dongguan. The operation is still normal and there are stable orders. However, the boss is still selling at a low price because he cannot see the future. The industry believes that this phenomenon shows that the industry is accelerating the reshuffle, the market changes are always driven by the big brands, this price rise is also the first big brands started. Small brands will die faster if they do not have premium ability.

The future of Sanitary Warehousing Company has a saying well. Failure is the mother of success. Only in constant trial and practice can sanitary ware companies grow and expand, especially small and medium-sized sanitary ware companies. Only closed businesses, no closed down industries. China is a huge market. The development of the real estate industry has driven the development of the sanitary ware market. As China continues to develop, people's demands for quality of life are also getting higher and higher. The younger generation's values ​​have undergone great changes. They have become the main consumers in the domestic sanitary ware market. They work hard every day and go home to relax and enjoy. The bathroom is a space for people to relax and enjoy. This is the most basic need of people's life. Therefore, the market is unlikely to be small. As far as production capacity is concerned, no country in the world has the same production capacity and overall cost as Chinese manufacturing. The five largest shower room companies in Europe have lost in competition with Chinese shower room companies. The world’s largest sanitary companies have set up factories in China or have cooperated with Chinese companies. The future of Chinese sanitary companies is not a dream, of course. .

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