In mid-April, the National Bureau of Statistics released the latest economic data. Among them, the CPI growth rate in March reached 5.4%, a new high in 32 months. Compared with the hot discussion of this data in other industries, the overall wardrobe industry people have to calm down a lot. The industry believes that with the overall price level rising, the prices of building materials and furniture will continue to maintain the upward trend. After the "May Day", the overall wardrobe industry will likely face price increases again due to the impact of rising costs in all aspects. How will companies and consumers respond this time?
The overall cost of the wardrobe industry has risen significantly
With the rising prices and costs of various raw materials, the overall wardrobe industry is facing increasing pressure for price increases. Raising prices has become an action that most companies cannot take. Many companies said that the overall price increase of the wardrobe before and after the "May Day" is not groundless.
According to the analysis of the person in charge of the overall furniture of the domestic leading wardrobe brand gold cabinet overall furniture, the main reasons for forcing the overall wardrobe enterprises to raise prices are as follows: First, the prices of materials such as plates, hardware and paints have risen. For example, since last year, due to the impact of rising wood prices, the price of board has increased by 10% to 40%, driving the overall wardrobe and other products to continue to increase prices by 5-10 points since the beginning of the year. The second is the increase in labor costs, logistics costs, and energy prices, which also greatly increase the burden on enterprises. Since 2010, gasoline prices have been raised many times, labor costs have increased many times, and various cost pressures that companies have to deal with have been increasing.
Adjusting prices or becoming a "May 1" collective action of wardrobe enterprises
In the face of the rising construction material prices since the beginning of the year, large cabinet enterprises such as Golden Cabinet Furniture Co., Ltd. predict that the prices of customized furniture products such as cabinets will likely "collectively rise" around 5% -10 before and after the "May Day" %. Consumers buy furniture "may be early."
In fact, in the face of rising costs, the overall wardrobe company has adopted various methods to deal with it. Among them, internal digestion became the initial action of some enterprises. As a representative brand of high-quality overall wardrobe products in China, the overall furniture of Golden Cabinet initially strived to digest costs within the enterprise without giving rise to product prices and giving preferential treatment to consumers. However, the person in charge of the gold cabinet company said that the rapidly rising costs have forced the company to raise the price of its products.
The industry believes that once the cost pressure is difficult to control, it will inevitably be released to the market, otherwise companies will face a crisis of survival and face the risk of failure. Therefore, consumers should also understand the increase in product prices. Because the price increase is actually the result of the influence of the entire economic environment, not the unilateral behavior of enterprises.
Cost-effective products will be more and more popular with consumers
In the case of continuously high CPI, consumers will prefer products with high cost performance, and the market space for the overall wardrobe brand with high cost performance will increase. In the current social environment, prices are a topic of great concern to ordinary people, and consumers are also very sensitive to price increases. The price increase of wardrobe products has caused some consumers to feel the pressure. In this case, saving money on high-quality products has become the choice of many people.
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