Into April from merchants compete for the “May Day” is also not far Furniture hot sale reason . However, businesses have cut prices in the past is different is that all businesses have quietly raised their prices. Reporter noted that the current market, including home improvement, furniture, cabinets, ceramics, flooring, doors and other fields, including many companies are quietly or will increase the price system.
After many investigations reporter was informed that china patio furnitures factory regulation, inflation, rising raw materials, the pressure spring is not booming domestic industry, coupled with rising costs resulted in the gradual erosion of profits of zero, companies have chosen to raise prices to survive it is the only way out.
Pressure forced some companies to survive the spring after the price has been raised
10% -15% increase
Late last year, prices of domestic china patio furnitures factory to wind and water. After the spring, with the introduction of a series of national regulatory policies, coupled with shortage of workers struck, home industry in the “cold” to survive the attack becomes more difficult. Forced to survive the pressure, many businesses have quietly raised their prices.
china patio furnitures factory division general manager He Zhaofu Po Boloni told reporters, Boloni has been raised in price years ago, in the range of 10% -15% of all product prices have been adjusted in the March 15 completion, but is expected within this year, Bo Maloney aspects will not increase prices. According to He Zhaofu introduced, price increases did not occur after the consumer resistance to emotional, instead of signing the spring Houboluoni also higher than the same period last year increased by 30%.
“In March the china patio furnitures factory made some of the price adjustment, the increase ranges from 5% or so,” deputy general manager Wang Xiaobing decorative eras in an interview with reporters to answer truthfully. Wang Xiaobing said that as the sheet metal, paint, and wages are rising, the erosion of the basic corporate profits to zero, product prices is an inevitable trend, but the company will not raise prices during the year. Wang Xiaobing told reporters that the current consumer does not pay the new price increase, with a strong emotional resistance, so the china patio furnitures factory has made some promotional activities corresponding to resolve consumer resistance.
According to Matt King, president Asia can, at present almost matt Asia in the form of management fees by regulation to resolve some of the pressure, management fees from 8% to 12%. Wang can be said home improvement products, price increases quotations, is expected to begin in May, when, the magnitude of this increase of 15% -20% or so. Also said prices were also been identified in Europe sent cabinets, the EU sent into the Beijing General Manager, said the china patio furnitures factory will be April 25 to conduct a comprehensive price increase, the proportion of 10% -15%.
Invariably increase the price of the business, consistent with the public business reasons point to raw materials, labor costs rise. Decoration Industry Association, the National Federation of Yu-Jie Li said that since last year companies to bear the pressure of rising costs, but the poor do not worry because the market price adjustment. After a year of self-digestion, even the basic corporate profits is not only far from the normal operations are more difficult, raising the price it is business quite upset.
To ensure that the existing market share prices temporarily
Does not exclude from future price increases
According to the reporter found that the prices of many china patio furnitures factoryies still waiting to see the current phase, will be based on market conditions and decide whether to adjust prices. Businessmen who hold this view that the responsible persons, temporarily raise prices, do not adjust the price does not mean that in the future.
Regal home Liu, director of marketing, told reporters, regal has no price, but not that the future is not up, is still in the hovering period. The reason for not raising their prices, Liu analysis that the overall market share in the current sharp decline in domestic circumstances, are unprecedented level of industry competition, in order to ensure a market share, china patio furnitures factory have to put the consumer’s acceptance first, so the price will not act rashly. Liu also said the quarter from 3.15 promotional point of view, volume compared with the same period there has been no decline in the phenomenon, but at this stage caused by the pressure of rising costs and other china patio furnitures factory can get out of their own digestion.
Also said prices were also temporarily Federal furniture. According to Wang Jianguo, general manager of Beijing, said the china patio furnitures factory, whether to adjust the price will be based on market conditions, if the market prices are not rising, then the federal furniture will maintain the existing price of the same. For the reason, Wang Jianguo said that under federal manufacturing enterprises, promote “intensive”, the Group is focused on market share, customer satisfaction, will not mind a momentary loss, so the choice for the cost pressures are currently within the organization. Wang Jianguo told reporters, national policy has little effect on the market, just to be still there but the problem has to buy time, so different from other companies, the Federal Haihui expand substantially none other activities.
Unacceptable to the consumer price
7.5 into the consumers said prices will affect their renovation plans
Shrinking market share in the same time, increasing operating costs of china patio furnitures factory and, in this backdrop, prices become a home industry consensus. Then, as the main consumers of household consumption is the ability to embrace, which caused public concern. In this regard, Sina home also launched a “home price you are willing to pay?” Questionnaire.
According to the survey results showed that 75% of users without the knowledge of prices for the home, 75% of users said that if home prices will affect the original renovation plans; for “how to accept price increases,” this issue 90% of users chose less than 3%. It is obvious from the survey data, prices for some businesses act quietly yet to discover many consumers. From the current state of analysis, consumer prices still holding very strong rejection to accept the price increases are very small, not much adjustment within the business.
Consumer Wang told reporters, “After years of promising to go buy a sofa this week, but found that prices have gone up a lot, it is terrible, just one month the price actually such a big change, I knew at that time to buy. ” Ms. Wang has the same experience with a minority of consumers, china patio furnitures factory for fifty-one decoration, are beginning to run around in all the major home building materials market, began to buy all kinds of building materials, furniture, quietly in the face of rising prices difficult to accept that, I hope businesses will give a grace period.
The face of consumers do not understand how companies resolve conflicts?
Transform scientific and technological transformation of enterprises need home industry
At this stage, china patio furnitures factory find ways to resolve not only to cost pressures, but also to relieve consumers face “price” phenomenon of resistance, many businesses that dilemma. In this regard, Sina also conducted a series of home interviews with journalists.
Regal home, said Liu, director of marketing, the china patio furnitures factory will be in the channel, marketing, product and work hard. The layout of the country will actively market; will also continue to introduce new products to enrich the product level to attract consumers; In addition, the regal home will increase in marketing spending, the budget only a 50% to higher than last year.
Deputy General Manager Wang Xiaobing said at the present, will be to defuse the pressure by three. First, the internal control overhead to “throttle”; Second, integration of industrial chain, building materials, product integration, thus reducing transaction costs; third, through the process adjusted to minimize the manual operation of the content, so that more process through the machine of to operate.
Association of the National Federation of the Secretary-General Yu-Jie Li seems home improvement industry, companies should first adjust the price of the product inside to resist the price, the direct pressure of rising raw materials; Second, china patio furnitures factory must make a long-term planning, shift from labor-intensive industries a technology, science and technology industries, thereby reducing the human input; Third, the “cut costs”, compressed operating costs and increase cooperation with the outside world.