The epidemic situation in 2020 has made the prices of building materials and raw materials rise continuously, which has a great impact on small and micro factories.
The price rise effect spreads to the terminal
It has been almost a month since the price rise of raw materials on the national day. We found that in addition to many price rise letters of raw materials, there have also been price rise letters and price rise announcements of finished furniture factories: Chivas announced that the price rise will begin on October 9. However, compared with Chivas's price positioning, for its target consumer groups, announcing price increases may be more a marketing means, which has little actual impact on consumers; Another example is a furniture enterprise producing massage chairs in Shunde, which raised the original price by 80-100 yuan / set. The main consumer groups of massage chairs are enterprise orders and engineering orders, and there are relatively few individual consumers; Tang fenghan yunmu space also announced a price rise. The brand belongs to a minority designer brand, and consumers are relatively high-end; Customized furniture brands launch aldehyde free board products with "new product price increase", and the price of aldehyde free board products is higher than that of ordinary board products.
From the raw material market to the end consumer market, the finished product enterprises that announced the price increase in the first wave have the following attributes: mainly making engineering orders, originally positioning high-end and launching new products. Their price increase, or for the mass consumer does not feel much, or is acceptable to the mass consumer.
Generally speaking, from upstream raw material factories to downstream finished product manufacturing factories, and then to the end consumer market, the influence caused by the price rise of raw materials is gradually decreasing.
When facing consumers, furniture manufacturers usually do not raise prices in a particularly obvious and naked way, but will digest the pressure of rising prices of upstream raw materials through other means.
The common ways are: ① automation and intelligence to improve the efficiency of production and manufacturing and reduce labor; ② Optimize the internal R & D, production and sales management system, strengthen cultural cohesion, strengthen training and other soft forces to drive development; ③ Increase cooperation with suppliers and obtain the original price or even lower price of raw materials by "exchanging quantity for price"; ④ Adjust the original product price system to maintain the original price of the product in the market or the price fluctuation that is not easy to be detected in a small range; ⑤ Launch new products and raise the price of new products by a certain margin.
In short, most furniture manufacturers will choose self digestion or relatively mild ways to deal with the rising price tide. This is why the prices of raw materials rise every year, but consumers don't feel strongly when they buy furniture in the market.
The rising price tide has a great impact on small and micro enterprises
There is a high probability that the price rise tide will spread to the end of 2020. In the case of not directly raising the product price significantly, facing more and more cruel market competition, many small and micro enterprises will have less and less living space. Whether they can carry the "winter" is unknown for many small furniture factories.
Changes in the external environment may be opportunities for large-scale enterprises.
On October 19, China's economic heavyweight data announced that the GDP in the first three quarters was 72278.6 billion yuan, a year-on-year increase of 0.7% and a year-on-year increase of 4.9% in the third quarter. On this basis, by analyzing the data related to the actual sales and future sales of real estate in the upstream of the household industry and the purchasing power of residents, we can see that the future growth is still good. According to the sales data released by some large-scale enterprises, the growth performance in the third quarter was also considerable. Therefore, for these furniture enterprises, "open source" must be put in front of "throttling". As long as the order volume is continuous, even the recent decline in profits will not affect the development of enterprises.
2020 is difficult, but there are many enterprises like mousse that are preparing to go public and are ready to realize the leapfrog development of enterprises.
Under the rising price tide, it may lead to the continuous improvement of furniture brand concentration, and small factories can not bear the pressure of survival. At the same time, large-scale factories are making continuous progress.
The threshold of furniture business will be higher and higher, and furniture enterprises will evolve in the direction of becoming more and more intelligent and paying more and more attention to innovation. As a well-known enterprise in the wood door industry, Yingkang family still takes product quality and product innovation as the basis of development in such a difficult year as 2020. The green bamboo and wood doors produced and manufactured are favored by the majority of consumers.
The article comes from China door and window network, invasion and deletion
whatsapp：+8613703868370
email：sales3@jiuyixing.com
tel：+8613703868370
factory：Henan Jiuyixing Building Materials Co.,Ltd
