The ceramic industry “buzzed” and the merchants reluctantly took profits to find a way out

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In the face of the investigation of the “influencing factors that lead to the price increase of ceramic products” conducted in the national terminal market, rising raw material prices, rising labor costs, rising logistics costs, and increased promotion and promotion costs are all factors influencing the price of ceramic products. Among them, 63% believe that the increase in raw material prices is the main reason. The increase in raw material prices has been considered by the majority of manufacturers as the culprit in the frequent fluctuations in the market price of products.

Terminal prices increase

In 2011, it is destined to be remembered by the architectural ceramics industry. From the beginning of the year to the middle of the year, under the guidance of national building materials to the countryside, real estate and new policies, under the impact of foreign anti-dumping and domestic restrictions on electricity, under the impact of rapid growth in raw materials, labor, logistics and other costs, the end product market sales It is in a dilemma and a dilemma. In mid-June, according to the results of relevant research, 66% of dealers stated that ceramic products prices have risen this year, and 34% indicated that product prices have basically remained stable this year. This means that the end prices of ceramic products have risen steadily this year. Supplementary.

Although the price increase of terminal products is the trend of the times, its increase is not significant. According to Suzhou dealers, this year did adjust the terminal price, but the increase was less than 5%. Nanchang dealers said that the current prices of food, clothing, housing, etc. are rising. As long as the retail price increase is not excessive, consumers can understand it. The Changchun dealers said that the current product increase is within the acceptable range of consumers. Some dealers chose to remain unchanged. Shi Qiang, a distributor of Guizhou Baita Tiles, said that at present, the slump in the terminal market is a fact. Some of the previous product inventories have not yet been digested, so they do not dare to increase prices. Because the brand wholesale price of its own agent has not risen, some dealers do not need to face the price increase problem.

Rising raw material is accused of being the culprit

In recent years, with the unpredictability of the market situation and the industry situation, many dealers have begun to care about the upstream issues. National market research shows that 89% of dealers are very concerned about the fluctuation of raw material prices, 60% think that the price increase of terminal products is closely related to the price increase of upstream raw materials, and 40% think that there is a certain correlation between the two, but it is not directly linked. In the “multiple factors that led to the increase in end-product prices,” raw materials rose to the top of the list with 63% of the votes. The rise in labor costs, the increase in promotion costs, and the increase in logistics costs accounted for 40% and 30%, respectively. 20% of the votes cast were runners-up, third runners-up and fourth place.

Faced with the voice of enterprises and businesses, Foshan City, Aung Tai Ceramic Pigment Co., Ltd. Lee said that the reason why the rise in raw materials is because of the country's increasing emphasis on rare earth resources protection, sources available for extraction, resulting in higher prices. "In order to establish long-term cooperation with enterprises and to help companies successfully realize the transition, the current price of color enamels is steadily rising, and it is not as high as the market rumors." Lee said. Tao Shenlang's marketing manager Bai Shenrong said that the rise in raw materials is just one of the many factors in the price increase of ceramic end products. “In recent years, raw materials have been rising every year. Enterprises have already taken this part of the cost increase into account.”

"Rising" sounds reluctantly

In the midst of the unfavorable environment and the “ups” of the market, most of the distributors have stated that they are under pressure. According to a national survey, 39% of dealers said that the pressure was increasing sharply, and 59% said they were under pressure, and those who did not have pressure accounted for only 2%. Consumers are also strongly impacted by this “price surge”. According to the research, 8% of consumers expressed that prices would rise further and they would quickly start; 43% of consumers said they would wait and see before buying, and 48% said they would choose whether or not to buy according to their actual needs.

"Do not look at our terminal products slightly price increase, but actually earn less than before." Nanchang, a business that this year due to take up the price of goods, they also increase the product terminal prices, but due to fierce competition in the market environment, tight source The rising part is mostly for itself. "The market is deserted, and within a reasonable range, the accumulation of new and old customers through appropriate reduction in sales prices has become the first choice for dealers." A merchant in Yunnan said that at present, the terminal market promotion campaign "Tanghuo Litian", Kaiping, Guizhou, Hainan and other places Merchants choose to make profits for survival.

Respond to the "Flux" business to find a way out

Although the building materials market is difficult this year, but the majority of dealers did not choose to sit still, but actively seek their own way out. Suzhou dealers chose to take precautions, advance inventory, reduce operating costs, and further promote publicity. Dalian dealers pay attention to related facilities. While increasing staff training, efforts are made to increase sales and after-sales services, and to compensate for the negative impact of rising product prices on consumers through an appreciation of the prices.

The same is true of dealers in Nanchang, Sun Linlin of Samitt bathroom distributors said that the worse the market environment, the more detailed the after-sales service will be. At present, the store not only promises to purchase goods at a certain amount, but also helps the owners to send products purchased at other companies. Shanghai dealers started to increase revenues and reduce expenditures, first reducing unnecessary expenses and reducing costs, followed by opening up other sales channels and increasing new profit points. Shaanxi dealers stated that they will further expand their sales channels and start developing new customers and selling products from home decoration, design and engineering.

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