The prices of raw and auxiliary materials, cartons, natural gas, coal... No one expected that since 2021, price increases have become the "main line of development" of the construction and ceramics industry!
Take the most "crazy" coal as an example.
It is understood that the latest factory price of coal in Gao'an production areas has soared to 2,600 yuan/ton, and may rise again. At the beginning of the year, the price of coal was only about 400 yuan/ton. From 400 yuan/ton to 2,600 yuan/ton, it has increased by 5.5 times!
For the construction and ceramics industry, a simple increase in coal prices is not the worst situation. The resulting power shortage has further led the government to restrict power and production in the home furnishing industry, including construction and ceramics. This is the most terrible consequence.
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Faced with the rising prices of raw and auxiliary materials, cartons, natural gas and coal, a large number of ceramic enterprises have to increase the price of ceramic tiles to cope with the rising costs caused by the continuous increase in prices of raw and auxiliary materials, cartons, natural gas and coal. Suddenly, the price increase of ceramic tiles has become another "beautiful landscape" in the construction ceramics industry after the price increases of raw and auxiliary materials, cartons, natural gas, and coal.
It is reported that on October 18, Guangdong, Jiangxi, Shandong, Guangxi, Hubei, Fujian and other production areas will welcome the third or even fourth wave of price increases after the National Day. Prior to this, well-known ceramic companies such as Dongpeng Holdings, Oceano, Mona Lisa, New Pearl, and Champion announced increases in ceramic tile prices. Up to now, the price increase in the entire building ceramics industry has generally been between 5-10%.
On September 24, Dongpeng Holdings issued an announcement stating that in view of the continued rise in raw material and energy prices and the recent tight power supply, the company will make reasonable adjustments to the prices of its main products and increase the price of ceramic tile products starting from October 1, 2021. sales price.
The "Price Adjustment Notice" issued by Mona Lisa on October 8 shows that starting from October 11, 2021, the prices of some of the company's products will be reasonably adjusted, including 300×450mm specification porcelain tiles, 300×300mm specification Small floor tiles and some models of channel-specific products, such as 600×600 antique tiles, 400×800 glazed mid-board, and 800×800mm glazed tiles, are all raised by 6%.
The "Letter About the Company's Product Price Adjustment" issued by New Pearl on October 11 showed that due to the continued rise in energy and material prices, in order to ensure the normal operation of the terminal market and various projects, it was decided that starting from October 15, 2021, In addition to promotional products and special application prices, the prices of other various products will be increased by 3-5% based on the opening price set by the company.
On October 11, Champion issued a price adjustment letter: Due to the recent tight power supply in various production areas, raw material and energy prices continue to rise. In order to ensure product quality and the company's sustainable development, it has been decided after research that starting from October 15, 2021, the standard delivery price for conventional products 60×120cm and below will be increased by 5%.
On October 11, Diou Home announced that its holding subsidiary Oceano will increase the sales price of ceramic tile products starting from October 11, 2021, and will increase the sales price of conventional ceramic tile products with specifications of 600×1200mm and below. The price will be increased by 5% based on the original opening price (regular price). This is the second time since October that Diou Home has issued a product price adjustment announcement.
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It is no exaggeration to say that the rising prices of raw and auxiliary materials, cartons, natural gas, coal and ceramic tiles are flooding the major platforms of the ceramic media and the WeChat Moments of ceramic builders every day. staged. Regarding this situation, different brands and practitioners in the building ceramics industry have very different views.
A regional manager from a waist brand told the author that although the increase in ceramic tile prices by ceramic companies is not enough to offset the impact of rising costs, it is better than nothing after all, and it can be regarded as a no-brainer.
A marketing director from a waist brand believes that "increased prices of raw materials and fuel are not necessarily a bad thing. Manufacturers can take this opportunity to join hands to raise prices a little and get out of the quagmire of long-term low-price competition."
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A business manager from a Weiwei brand said that although there are constant calls for price increases in the construction and ceramics industry, it is only a matter of loud thunder and small rain, and it is difficult to truly realize it. Even if it is truly realized, it will only be the manufacturer's cost increase. The crisis has been passed on to dealers and consumers. However, consumers may not necessarily act as the "taken advantage of". In the unfavorable situation of rising prices, especially the price of home building materials and decoration labor costs, while wages or income remain unchanged, some people with limited economic conditions will most likely reduce their budget for ceramic tiles, from a slightly higher requirement to one that can Just make do; those who are not in a hurry to move into a new home or renovate an old one are even more likely to put off renovations, possibly indefinitely. Manufacturers raise prices, dealers follow suit, but consumers are unwilling to accept it, so they buyThere will be a corresponding decrease in the number of people buying ceramic tiles, and the ceramic tile market will also become sluggish. In the end, it will be the dealers who suffer.
Several other senior executives from leading brands have surprisingly consistent views. They believe that in fact, large companies are embracing price increases. The arrival of price increases means that the reshuffle of the construction and ceramics industry has really begun. The companies that will survive in the future are those with a solid foundation, strong brand awareness, production and product advantages, and well-managed management. For large companies, the opportunities of this price increase outweigh the challenges.
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In the author's opinion, in the face of the "dual carbon", "dual control" and price increases that are sweeping across the country, who can survive the crisis and who can grow? Although it has yet to be tested in practice, the strong will eliminate the weak. It is definitely the most heart-wrenching and real result. Although manufacturers and dealers can use raising ceramic tile prices as an extraordinary measure in extraordinary times, they should be more clearly aware of the fatal hazards of low-price competition in the context of overcapacity and channel fission, abandon the mentality of eager for quick success, and work together to do the following three things , thereby laying a solid foundation for product premiums.
The first is to find the correct brand positioning, consolidate the service foundation, capture the minds of users through high-quality content cultivation and services, and realize the advancement of industry brands to consumer brands.
The second is to actively upgrade equipment and technology, strengthen product original design and application design, rely on technology and design to solve the problem of product homogeneity, and stand out from low-price competition.
The third is to continuously improve the management level, transform and upgrade from extensive management to refined management, and seek benefits from management.
Of course, the most important thing is to be able to survive the current difficulties.
(Author: Zhuifeng)
