Home Furnishing industry: price increase is not a good strategy to integrate resources is a strategy

Cost increase, policy impact, two-way attack, many companies have to "succumb", have raised the sales price in order to ease the pressure. The reporter learned that nearly 60% of branded home furnishing companies have secretly raised prices.

1. The cost of home renovations has soared across the board

It is reported that the cost price of affixing one square meter of ceramic tiles has risen to nearly 100 yuan; the wiring of a long line of cloth has increased to 50 yuan; the floor of a brand has soared from 93.5 yuan per square meter to 126 yuan per square meter; The prices of sanitary wares, cabinets, and wardrobes have also been raised by 5% to 15%. In addition, the labor costs of many decoration types such as bricklayers, carpenters, oilers, water and electricity workers have all increased to varying degrees. The renovation cost of a family is soaring in all directions.

For the home improvement industry, raw materials, logistics fees, labor costs, and store rents have risen, and the squeeze of high costs has led to a significant reduction in the company's profit space. In addition, the deepening of the national real estate regulation and control policy in 2011, the home improvement industry in the downstream of the real estate industry, will inevitably be radiated.

2. Simple price increase is not a good strategy. Resource integration is the direction

Industry insiders analyzed that the price increase is pressured by costs. The sales scale of some enterprises has decreased, and fixed costs such as rent and personnel are still increasing. Therefore, price increases may be their only way out to exchange prices for profits, but this is not a long-term development plan. After the price increase, consumers will not accept it.

In the current new market situation, companies should not directly transfer the pressure of rising raw material prices and rising labor costs to consumers. Enterprises should more extensively unite all links in the home improvement industry chain, and achieve tangible and close cooperation in design, products, services, management, and price systems. They must work together to integrate and share resources in order to absorb external pressure. For the majority of consumers, the traditional decoration is obviously no longer saving money. Instead of running the market every day and participating in the price war, it is better to hand over to a reputable and powerful decoration company to be an on-site supervision. Presumably save money It's a lot easier.

3. Home store

When I visited the home improvement building materials market in Xiamen, I found that many home products had to increase their prices around New Year's Day in 2012. An agent of solid wood furniture said that starting from January 1, 2012, our solid wood furniture will increase in price. The new price list is under discussion and discussion, but in any case, it must be higher than the current price. . He also told reporters that in fact, many merchants have already raised their prices. Although some preferential activities have been launched, the actual prices have indeed risen.

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