Rising prices hit paint companies should seek new breakthrough opportunities

Every New Year's Day, Eleventh and other holidays, are important opportunities for business promotion, but different from previous year's price war, forced by raw material prices, transportation and labor costs, and many other reasons, including many furniture products including paint before and after New Year's Day All products will be subject to different levels of price adjustments. The paint industry needs to find new breakthroughs in the tide of rising prices.

New Year's Day holiday promotion price change

The paint industry is a fairly market-oriented industry. The price rises and falls are often determined by the market, but the situation in 2011 may be a bit different. Although the market for doors and windows has been affected by the regulation of the property market, sales have declined, but companies have had to increase their prices because of rising raw material prices, increased logistics and labor costs, and putting companies under great pressure.

Industry sources said that before and after New Year's Day will adjust the price, then it is normal to increase 10%. The price adjustment of old products will not be too big, but new products will rise a bit more or less.

In addition to paint, the prices of other household products also face a new round of rise. According to industry insiders, the plates and paints used in production have recently risen by 10% from the previous year, the price of plastics has increased by 8%, and molds, cutter heads, sandpaper, and sandbags have risen by more than 10%. You can not underestimate the small pieces of sandpaper and accessories, the original as long as 1 yuan a, now 1.1 yuan to 1.25 yuan a, it seems that only rose a hair two hair, because the amount is very large, the final accounting costs will be The number on the books was found to be alarming. These are the reasons why retail products have to rise in price.

The increase in transportation and labor costs has also brought price pressure on home companies.

It is understood that due to the impact of higher gasoline prices, the import of oak from the United States, only transport costs rose by 20%. The manpower cost cannot be ignored. Taking the wooden door industry as an example, the salary of a small worker at the end of the year is only 1600 to 1,700 yuan. There is no 2,000 yuan now. No matter how skilled the skilled worker is, the piece rate has also increased by 15% to 20 percent. %, for example, the worker's pressure line is 10 yuan per piece, now it is 11 to 12 yuan, which will increase the cost of the product.

Rising prices or adjustment opportunities in the coatings industry

Due to the increase in raw materials and labor costs, the costs and competitive pressures faced by coating companies are gradually increasing.

In addition, coating products have gradually shortened the production cycle, the diversification of consumer demand for products, and the continuous improvement of product technology, and other reasons, making paint companies more and more urgently looking for ways to solve these problems. Among them, throttling has become one of the effective methods for the company's SRB. Throttle contains many aspects, such as purchasing, personnel, sales, and so on. Reducing procurement costs is the most direct way for procurement personnel to provide value-added services. There are many ways to reduce procurement costs, such as centralized procurement, Internet procurement, and joint procurement. The cost of transportation is also a major problem faced by paint raw materials and paint companies. Many companies still purchase and transport goods in long distances. With the soaring transport costs and high commodity prices, this obviously makes paint raw materials and finished paint companies injures. One major aspect.

The rising price of raw material markets is the biggest problem facing coating material companies and coating companies. Due to the fierce market competition, it is difficult to digest through the price increase of the product terminal, which will lead to a decline in unit profit. Whether the price of a product has risen has also entered a white-hot period. It is internally digested first, or whether the profit cannot be lowered and the price is increased. Both require the control of the company itself.

The tide of price increases is a phenomenon in the paint market, and it also boosted the industry's reshuffle. In addition, “localization” has become a new business strategy for paint companies. Facts have proved that only by implementing localized management and localized management, can companies be more familiar with local market conditions, adapt to changes in the market, and increase their ability to control and control projects, thereby reducing costs and increasing competitiveness.

In recent years, paint giants have set up factories in China, "grabbing the local market" is an important strategic consideration. With the rapid increase in demand in the Chinese market, in order to keep up with consumer demand, many paint giants have started to set up R&D institutions in China, greatly reducing the development costs under the premise of guaranteeing the development quality, and initially relying mainly on overseas introduction and local technical support. The R&D center slowly develops into China-based and tailor-made products for the Chinese market.