Raw materials soared, Guangzhou terminal retail was stable
"sponge rose 65% in a month, oak, wax and other wood rose 30%, zinc alloy rose 70% Since the fourth quarter of this year, the prices of the main raw materials for furniture manufacturing, such as wood, sponge and chemical fiber, have risen sharply, causing a sharp increase in pressure on furniture enterprises in Dongguan and Foshan, and had to issue an ultimatum to dealers to take goods and raise prices. Is the terminal retail price of furniture shopping malls also rising? A recent visit to the market found that despite the high cost pressure, the actual selling price of the terminal in Guangzhou furniture store did not fluctuate significantly
the price of the main raw materials of furniture has soared
it is learned that since September, the price of sponge upstream raw materials, which are the main materials of soft furniture such as sofas, has increased continuously, the sponge raw material "polyether polyol" has increased by nearly 4000 yuan per ton, and the domestic TDI (toluene diisocyanate) price has soared from 1700 yuan per ton in March to 5500 yuan per ton per day in November after relevant testing. Chen Peisen, chairman of Foshan sensheng Furniture Co., Ltd., showed the price increase notice from Suifeng sponge factory, Weibo leather factory, Chongqing Shixin packaging and other upstream raw material enterprises. The TDI price rose to 5000 yuan/ton in October, 65% higher than that in September, directly affecting the cost of sofa 600-1000 yuan/set. In addition, the imitation leather increased by 0.4 yuan per yard, and the non-woven fabric increased by 500 yuan/ton. "For solid wood furniture manufacturers, the main cost is the cost of wood. Since the second half of the year, the prices of ash wood, oak and other wood have also increased by more than 30 percent." Chen Peisen told
Chen Jianjing, vice chairman of Guangdong Huasong furniture group, also said that the price of solid wood, the main raw material of Huasong furniture, has increased by 20% - 30%, and the price of zinc alloy has increased by 70%. At present, the price of Fas grade red oak with a length of 2.15-3.05 meters and a thickness of 1-2 inches in the Guangdong market is 6200-8700 yuan/cubic meter, and the order cost increases by about 8%. In addition, timber prices in Southeast Asia have risen by 30% in the past week
Luo Li, head of Dongguan Novartis furniture, told that raw materials in the furniture industry have increased significantly this year. It is understood that not only wood, sponges and other production raw materials, but also cartons and other packaging materials have increased significantly. "The carton quotation received in the second half of the year has increased four times in a row, with a cumulative increase of about 50%."
some enterprises raised prices slightly to deal with
for the furniture industry, the impact of the soaring prices of wood, sponge and upstream metal materials is obvious. Luo Li told that because the price rise of raw materials is too large, it is difficult for Novartis furniture to pass on the cost pressure to the downstream even if it raises the product price. "Some raw materials have doubled, but our products can't be like this. If we want to completely pass on the rising cost of raw materials, the original sofa sold for 10000 yuan, but now it will sell for 20000 yuan, is it possible?"
however, in the face of soaring raw material prices, some Dongguan furniture enterprises had to choose to adjust prices. "In fact, after the rising tide of raw material prices began, we have already raised prices, and the price rise of all products is about 5% based on the existing industrial advantages." Zhaojiayao, vice chairman and President of Dongguan City window furniture Co., Ltd., said frankly that the 5% increase can only slightly relieve the pressure and cannot solve the fundamental problem. "We will adjust the product price from January 1st, 2017." Chen Jianjing also helplessly explained, "there is no way. Raw materials have risen too much at once. If the price is not increased, the enterprise will lose money."
dealers compress profits to ensure sales
how do downstream furniture malls and brand stores respond when upstream raw material suppliers and furniture manufacturers raise prices one after another? During the market visit, it was found that many stores of sensheng, Changshi, Muse, styroland, Cato and other brands did not significantly raise prices
Huang Mingsheng, a Guangzhou dealer of sensheng furniture, reluctantly told that the factory sent out price increase notices one after another, resulting in a sharp rise in the purchase price, but he did not dare to raise the price rashly and could only continuously reduce profits. The reason is that there is a fierce competition for the maximum tensile test space (mm) of 600 in the market, and the supply exceeds the demand. Huang Mingsheng made an account: the gross profit of a set of solid wood furniture is about 40%. Excluding the costs of 15% store rent, 10% guide salary, 8% logistics and warehousing, the net profit is less than 10%. "The inherent impression of consumers that the furniture industry is a profiteering industry has not changed. They always cut two or three discounts, and even cut half of the special price."
in the face of the current situation, zhouxiaojuan, head of the Huangpu Avenue store of golden seahorse, said that under the habit of Internet consumption, consumers always want to spend less money to buy the furniture with the highest cost performance and enjoy the return and replacement service without threshold. The cost of consumer furniture consumption default has been reduced, and the after-sales service cost of furniture malls and furniture dealers has increased, "We call for a standardized pricing system and insist on providing consumers with unreasonable return and exchange services of furniture similar to tmall Taobao. At the same time, we also hope that consumers can bargain rationally and protect their rights rationally."