Furniture price increase enterprises should not rely solely on price increases to absorb cost pressure
For enterprises, the cost of digestion is the first choice, but also an instinctive reaction, but the most fundamental method still depends on change. Digital Projector,Mini Portable Projector,Mini Bluetooth Projector,Home Theater Mini Projector Dongguan Aoxing Audio Visual Equipment CO.,Ltd , https://www.aoxing-projectorscreen.com
According to the analysis of the industrial timber market, in the first quarter of this year, the average increase of the wood into the Wanguan is about 10%. The factors that caused a new round of price increases were mainly due to the reduction of domestic forest bans and the decline in imported timber, which led to a decrease in the supply of wood suitable for making furniture and triggered a new round of price increases.
The price of timber has risen and the furniture industry is one of the most affected industries. According to the analysis of supply and demand theory, the rise in product prices will definitely trigger market changes. In extreme cases, demand will drop dramatically. Therefore, in the issue of price increases, the furniture industry has been extremely cautious. Most companies will not choose to increase the price of the original product. Instead, they plan to re-price the new product and directly add the cost of the increase. .
However, this arrangement of digesting costs can only be regarded as a technical arrangement and does not bring about a strategic change in the furniture industry as a whole. Despite the relatively complicated structure of the furniture market, consumers who purchase high-end furniture made from imported wood are inflexible in price and will not give up or reduce consumption due to price increases, but the price increase of some low-end furniture products is common. Consumer spending suppression is obvious.
The furniture industry's measures to digest timber prices also include wood substitution. Since the beginning of this year, the sales of artificial panels on the market have risen against the market. It is confirmed by the data that the mid-to-high-end splint has maintained a very good sales performance in the first quarter. After entering the market in April, the market has further improved, and there has been a rare occurrence of “Xiaoyangchunâ€. Potential.
The above two ideas are based on cost targets to organize corporate strategy, which is useful for maintaining the competitiveness and market size of the furniture industry in a high-cost environment, but these two paths are difficult to help the furniture industry break through the traditional path. The boundaries also use the power to turn the crisis into a turning point.
The economic history clearly shows a rule that every crisis brings a lot of new technological innovations and applications, which often cause companies to re-plan product boundaries and redefine industry boundaries.
For enterprises, the cost of digestion is the first choice, but also an instinctive reaction, but the most fundamental method still depends on change. After all, the cost of digestion has the suspicion of sacrificing the cost performance of the product. More or less there is erosion of the interests of consumers, and this will bring uncertainty to the market, and may even cause the market to shrink. The rising cost is certainly not good news for the furniture industry, but if the cost rises as a signal of change, the furniture industry will have a good news.