Yesterday afternoon, the U.S. global strategic cooperation with China Summit 2005 held in Shanghai. More than 100 veterans attended the manufacturing home appliances. Learned from the appliance manufacturer’s Office, although the raw material increases the pressure constantly increasing, but the appliance manufacturers cautious on prices. City of appliances to consumers as raw material prices also do not “pay.”
Compression of 5% profit? 10%
“A 1,000 yuan of products, we should be in the input cost is 10%.” Kitchenware Co., Ltd. Ningbo side too, who asked not be named, told the participants. Since the end of last year, the company clearly felt steel, chemicals and other raw materials increased pressure.
Dongguan Huaqiang Sanyo
delegates Electronic Co., Ltd., said last year, the company purchases steel rose by 10%, also up 1 percent of plastic, general told, now the company for purchase of raw materials and more took out 3%.
Iron ore price rise message to many people all eyes are on the downstream industry. Participants learned from the manufacturer’s Office, recently sang the market rise in the price of raw materials to home appliances manufacturer widespread pain again. “First of all iron and steel, petrochemical products, then copper, plastic raw materials … … these are rising.” Appliance industry veteran Dutch Liu Qing said.
Many household electrical appliance enterprises
told reporters, raw material price increases directly affect the home appliance industry profits. “Our profit estimates, the space is compressed 5%? 10%.” Dongguan Huaqiang Sanyo Electronics Co., Ltd., a source said.
Air conditioning color TV is difficult to price increases
Recently, the “domestic appliances 5% price will go up,” continued the voice sounded in the industry. However, the information’s about to see, household electrical appliances seem to not be easily made up.
“We have no intention of raising prices.” Hewlett-Packard Co., China’s vice president Qiu Qiuliang quite sure.
“Bad price increase, the market did not promise ah.” Side too Kitchenware Co., who put a bit helpless. Sanyo also said it is impossible to raise prices because consumers can not accept.
Appliance business is also ruled out the possibility of price increases. “China does not want U.S. manufacturers raise prices. Even if the manufacturers improve the ex-factory price, we will not increase the retail price.” Wang Jun, general manager of Gome’s Southern Region states that “as long ago declared Siemens prices, but consumers in the stores obvious sense. “Gome, another person said, circulation enterprises competitive, which will bring the prices of business” back. “
Manufacturers also said that even if the carry to continue, it will only “soft” in prices, as Chinese consumers are price sensitive. “Most will use the new products, new models, cancellation of special machines and other forms of dark rose, or some will reduce the weight in gifts, consumers may not feel this moment is clear.”
A household electrical appliance industry, told reporters, from the current market supply and demand relations, the domestic market, such as air conditioning, color TV there was a lot of excess capacity, prices of these products to be more difficult.
Second and third line will be out of the brand
Industry generally in an interview that the cry behind the price rise, more importantly, to hear the Chinese appliance market herald a new round of shuffling.
“Profit is compressed upstream business, the product can not price increases, we should work hard way is to design more simple and precise, some consumers do not have access to the functions of the products cut out from the other, is from internal management to identify how to reduce expenditure. “Sanyo Electronics, sources said. However, some weaker companies are on the rising costs do nothing.
To industry sources, raw material prices direct consequences, the company realigned production scale, technology, the leading provider of enterprise resource integration can control the costs to deal with raw material prices, and those small, the high cost of factory management will be more difficult, or even eliminated. “Currently China’s home appliance market, production capacity and market demand is a serious asymmetry, air-conditioning, color TV there was demand for the domestic market more than doubled the production capacity, excess capacity can be a huge market demand in order to release.” Gome Sun, general manager of electrical operations center, said a small.
Industry believes that a new round of Chinese home appliance industry, industrial upgrading is accelerating, rising raw materials, retail and other events are open to one of the catalysts, the upgrade may result in more focus on home appliance brand, a large number of 2 third-line brand will quit lakes.