Affected by the freezing of 50 years, this winter in Shenzhen is particularly long. In March, “the sky is finally light blue and clear,†and the major home stores in Shenzhen have also been regrouped and ready to welcome the first renovation season in 2008. However, the price of furniture and building materials caused by the increase in raw material prices and labor costs has risen sharply, but it has somewhat made it difficult for dealers to “digestâ€. Faced with this market situation, major building materials companies have alleviated the difficulties that are easy to appear in sales in various ways.
The price increase of furniture and building materials is a foregone conclusion
In recent years, the price increase of raw materials has become one of the most common headaches for furniture and building materials manufacturers. It is a pity that with the shortage of resources in the world, the price increase of raw materials will continue. Since June last year, the prices of raw materials such as wood, leather materials and metal alloys have risen by 5% to 20%. With the increase in raw materials prices, the prices of furniture and commodities have generally increased, and prices of various furniture and decoration materials have increased. The average increase has reached 10% to 20%.
As a labor-intensive industry, labor costs are one of the main components of the overall price of the furniture industry. The new labor contract law was officially implemented on January 1 this year. Enterprises must pay five insurances for their employees, including unemployment, unemployment, work injury, maternity and medical care. This has undoubtedly increased the labor costs of furniture companies, and the already very meager profits will be forced to “shrink†due to the increase in labor costs. The industry believes that the tight supply of wood and rising prices in the next 10 years will be the overall trend of the industry, and the domestic furniture industry is facing continuous and huge cost pressures.
The price increase is not only furniture. At the beginning of this year, many well-known wood flooring companies such as Nature Floor, Hongji Wood, Huida Floor, etc. have raised the market price of some wood flooring for the first time this year, providing a range of 5%. Between 15%, it is understood that the price increase is the most popular product on the market. According to industry insiders, flooring companies do not rule out the possibility of raising prices again in April.
The price increase of raw materials has also reached the lighting industry. According to reports, compared with the beginning of last year, steel has doubled, plastics have risen by about 30%, glass has risen by 15%, and wood has risen by 10%. Before the Spring Festival, the price of lighting has risen by 10%. According to industry insiders, the price increase of lighting is expected to be reflected in the market in April and May of this year, and the price increase is 10%-20%. Zhu Changling, vice chairman of the China Furniture Association, said: "As for the shortage of resources and the current situation of raw material price increases, the price increase of household products including furniture is a major trend in the future."
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