Frequent Price Increases In Raw Materials, How Should Furniture Companies Respond To Market Changes?

- Nov 02, 2018-

The biggest increase is the related products made of titanium dioxide and TDI. These bulk raw materials are greatly affected by fluctuations in the international market. The price increase has a direct impact on sponges and coatings. For example, the main raw material sponge of soft furniture has been continuously increased by five or six times in one or two months in 2016. Since 2018, prices have continued to rise, and there is no market, out of stock, and no reservation.

In addition to sponges, every rise in the price of wood-based panels such as particleboard and MDF, which are the main raw materials for panel furniture, has stung the panel furniture manufacturing enterprises.

Following the second and third price hikes of many paint companies in Guangdong this year, paint companies in East China after the National Day holiday also set off a price hike, which will inevitably lead to an increase in the production costs of furniture companies.

In the past, for a long time, the upstream raw materials rose once a year or half a year, which is enough to touch the nerves of the whole industry. Nowadays, raw materials have risen several times in a few months, and even a few times in January have been strange.

In the case of price hikes, priceless goods, one-handed payment, and one-handed delivery has become the "normal state", furniture manufacturers have different ways of digesting price increases, which also reflects different market competition strategies of furniture companies. The pattern.

After shoddy, raise the price, hello, my good consumer is not good

The furniture manufacturer who made this choice, in line with the principle that "wool is on the sheep" and never letting itself suffer, is a linear thinking performer.

Raw material traders want to raise prices. This type of furniture manufacturer is calculating two sets of plans. The first one is to buy relatively poor raw materials. Consumers can't see anything different from the surface. As a result, the furniture products that are distributed to the market are of poor quality year after year.

Not only do they not feel that this is their responsibility, but they also evade responsibility when they encounter a complaint with a "what kind of price to buy what kind of goods." Over time, consumers can only give themselves a psychological expectation that does not expect good product quality. The second option is to buy the raw materials for the price increase and then quietly increase the price of the finished product. Considering that consumers can't accept a single product, they will increase their prices. They will use various packages, combinations, new products, and even various pricing methods that they do not understand.

Previous:The First China International Import Expo Next:Sino-US Furniture Trade Problem In Sino-US Trade Friction