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Trapped in the first quarter of the cost of home appliances industry crashed and up by e55he swrzsnb
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Trapped in the first quarter of the cost of home appliances industry crashed and up by E55HE SWRZSNB
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| Article Posted: 08/12/2011 |
| Article Views: 62 |
| Articles Written: 2033 - MORE ARTICLES FROM THIS AUTHOR |
| Word Count: 809 |
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Trapped in the first quarter of the cost of home appliances industry crashed and up |
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Business,Business News,Business Opportunities
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Currently in Beijing to participate in the "two sessions" of the National People's Congress on behalf of Lee, some of a heavy heart the past few days.
Lee, is the vanguard of China's refrigerator industry, the new fly Electric Group. Let him feel the pressure that will be imported iron ore prices this year, 71.5% of the news.
Steel costs in the cost of the refrigerator accounted for nearly 30% share. Such a sharp rise in iron and steel raw materials to the household electrical appliance enterprises can imagine the pressure.
"This is not unexpected, seems to be growing in China's household electrical appliance enterprises hard." This is Lee, that iron ore prices will rise sharply after the first reaction.
Currently, home appliances company's gross margin continued to show a decreasing trend in the average household electrical appliance enterprises domestic product gross margins have been generally less than 10%. China's household electrical appliance into the marginal profit business changes in prices of sensitive materials. Including refrigerators, air conditioners and other large steel consumption performance in this area in particular.
In the past year or so, the steel price increase has been 30% -40% of highs.
Industry believes that the huge increase in the import price of iron ore in the background, Steel prices will definitely continue to rise, and home appliance enterprises will face the cost of a more cruel dilemma, part of the household electrical appliance enterprises likely So out.
In fact, more frequent price wars appliances market, except a few have the core competitiveness of industry giants dare to put forward the "prices" to avoid the cost of raw materials prices risks to the general's household electrical appliance enterprises that the conversion cost by increasing prices is simply little hope of pressure. In 2004, China's household electrical appliance enterprises in South China had some form of hope in Union uniform price, the result to nothing.
Iron ore prices jumped 71.5% in the reality that the new Electric Group fly like giant Shangju was "difficult" situation of SMEs in the industry is self-evident. According to Lee, analysis, appliance industry core competencies that are not mastered, usually rely mainly on the price war for survival of small household appliances enterprises, raw material prices in the storm will lose its advantage of low prices, might even exit the consumer electronics market.
The collapse of the Road
Severe cost pressures in China's household electrical appliance enterprises to turn the tide?
Lee, said, very suddenly, everyone would have expected such a huge increase, the new group does not yet fly on ore prices to take specific action. However, since the second quarter, Baosteel announced the increase of steel, the new fly Group has developed the appropriate strategy, the strategy currently being implemented.
Lee, said the transfer cost pressures there are two main ways. First, transfer forward, to improve end-product prices, the pressure turned to the consumer; first shift back and rely on lower cost of human resources, management costs, new technology means to achieve within the organization. However, this way of transferring costs must be controlled within the enterprise can bear. "After all, lose money in business is no one to do." Lee, said.
Contrast, Lixing Hao Chi, chairman of the high air-conditioning group showed the usual optimism: "It's like rain as the rain will pour my time to others, we are the same." He that the face of this price increase crisis enterprises should invincible, the best way is to adjust its product mix, improve product with high added value.
Expert Wang Lei of China Household Electrical Appliances Association, said China's household electrical appliance enterprises from the end of 2002 began to bear the pressure brought about by rising raw material. So far, most Chinese enterprises have not many can continue to absorb the pressure of space. This means that the household electrical appliance enterprises will have to shift more cost pressures to consumers.
Information from market experts confirmed the number of inference. According to reporters about the situation, in Beijing Gome, Suning, Dazhong and other home appliances stores, most of the refrigerator, washing machine brand, the price of individual models are up 100 -200 yuan rate. Which, Siemens refrigerators, up from 50 -250 dollars will; Yung-Sheng, Meiling brands rose to 2% -3%; LG brand has gained some 50 -100 per month.
More appliances on the market price adjustment will substantially rumors, many consumers will buy home appliances ahead of schedule. Industry sources said sales this season at the 2,3 month, the sales of home appliances. I am an expert from China Manufacturers, usually analyzes all kind of industries situation, such as free black jack game , wi fi adapter usb.
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