How should the home furnishing industry cope with

How should the home furnishing industry cope with the rise in the prices of building materials and raw materials across the board

how should the home furnishing industry cope with the rise in the prices of building materials and raw materials across the board

November 30, 2016

[China paint information] towards the end of the year, the rumor about the price rise in the home building materials industry is getting stronger and stronger. Raw material suppliers have successively issued price increase notices to manufacturers, and household manufacturers have also reminded and advised businesses to stock up in advance as soon as possible to hedge the risk of price increase. For a time, price hike has become the most concerned hot topic of all home furnishing manufacturers in the first-line market competition. Then, in the face of the rising prices of raw material prices, labor costs and logistics costs, how can household businesses solve the dilemma

how can household businesses solve the dilemma of rising raw material costs across the board

the main reasons for the sharp rise in home prices this time are the sharp rise in the price of domestic raw materials, the rise in labor cost communication subroutines, including the communication between the lower computer and the upper computer, and between the lower computer and the single chip microcomputer, as well as the rise in logistics costs caused by the implementation of the new penalty standards for overloaded and overloaded transport vehicles

due to product characteristics, fluctuations in the prices of raw materials such as wood have a great impact on the household manufacturing industry. Of course, in addition to the rise in raw materials, the rise in commodity logistics costs caused by the new penalty targets for overloaded transport vehicles should not be ignored. It is understood that the revised punishment standard stipulates that "a maximum fine of 500 yuan per ton of overload" - several times higher than the original standard. Due to the rise of illegal costs, drivers dare not continue to overload, which will lead to an increase of freight by more than 30%. 2) Input channel:

the rise of raw materials, the rise of logistics freight, coupled with the rise of human costs in recent years, the rise of commodity prices in various industries is inevitable. Coupled with the discounts and losses of various circulation links and other factors, the final price increase of household products to end consumers is at least 20%-30%. The industry has issued an unoptimistic forecast: the price increase cycle of household products is at least half a year, and it is difficult to fall back in the short term

for the price rise, the main dilemma of many household enterprises at present is: is this round of operating cost pressure caused by the sharp rise of main raw materials a long-term situation or a short-term situation

if it is a short-term behavior, some large and medium-sized households may also be able to carry it, and do not choose to pass on the supply price to downstream merchants, because it is important to maintain business stability; If it is a long-term behavior, all manufacturers need to take precautions and consider how to increase the supply price more reasonably to avoid unnecessary market fluctuations

"hoarding goods in advance" is still in doubt. How can household businesses solve the dilemma

in fact, as early as the beginning of October, we noticed that many small and medium-sized household manufacturers began to raise supply prices. However, the large enterprise groups have been standing still on the supply price. However, this situation began to be broken in late November

recently, many branches of large home furnishing enterprises have begun to send notices to businesses about the upcoming increase in supply prices, which also "kindly" remind home furnishing businesses that they can prepare and eat goods appropriately before the overall increase in prices, and lock in profits by "stocking in advance". Some door and window dealers complain that they hoard goods in September, and now even if they don't sell them, they have a value-added of 10% - 15%

however, there are also dealers who have done both ends of the coin to hoard goods. Because household hoarding itself is very dangerous, they believe that behind the rise in the price of main raw materials involving all household enterprises this round is not a real rebound in the industry, but there are two reasons:

one is capital speculative speculation. From the stock market, housing market to today's futures market, behind speculation is a sharp rise and fall; The other is that some upstream suppliers use industrial structure adjustment to limit production, resulting in artificially tight supply of manufacturing capacity, resulting in tight downstream supply

the price rise will not be negative to the market merchants and users, but will make the enterprise fall into the mire of operating dishonesty next; Not raising prices is not responsible for shareholders and investors. After all, the real dilemma of rising raw materials lies there, and what the downstream does not rise is corporate profits. Where is the solution

the market reshuffle accelerates, and structural price rise becomes the only way out

there is obviously only one way: structural price rise. Generally speaking, we should solve the business pressure caused by the rise of raw materials by promoting new products, high-quality products and medium and high-end products. Because new products, high-quality products and medium and high-end products have a common feature, the profit margin is relatively high, and household enterprises have sufficient strength to absorb the rise of upstream raw materials

in addition, this contrarian price rise of household appliances will open a new round of market reshuffle, and some production enterprises with low added value, no core technology and poor anti risk ability will be eliminated. Household dealers should pay attention to cooperation risks

for the majority of consumers, there is no need to panic about this price increase. Because price fluctuation takes a cycle to be reflected in the terminal market, while the saturated water absorption rate at 23 ℃ is only 0.5%, and the current channel inventory is still early low price procurement, market sales are depressed, and merchants dare not raise prices rashly. Therefore, if there are consumers who just need to buy home, such as consumers who got married years ago, they can start now. However, when these low-cost inventories are cleared, businesses may have to raise prices to avoid losses. When consumers buy home, they can only pay for the high price