The home industry is forced to raise prices

The home industry is forced to raise prices

After the Spring Festival, the bad news of the property market continue to come. First, the central bank in disguise to raise interest rates more clear tightening signal, banks have to reduce or cancel the mortgage interest rate concessions, and then the China Foundation Association of heavy attack, the provisions of investment in real estate prices rose too fast hot city ordinary residential project management Plans to temporarily not filing.

Spring Festival after the wooden door has been raised 15%, wardrobe prices have not yet adjusted, it is estimated that three or four months will follow up. “The latest policy signal on the property market is bad, the home industry boom will certainly be affected, the company would like to first small price increase test market reaction. “In fact, we do not want to price increases, it is the cost of pressure too much … … the current passenger traffic less than half of the same period last year.
It is understood that this round of home industry prices is the main promoter of raw materials. Since 2016, with the price of crazy rise, coal, steel, wood all the way hurricane. When the price is curbed, chemical raw materials, electronic components, packaging and printing to get the price bumper. Last year in September, a year-on-year growth rate of 54% of the industrial producer’s ex-factory price index (PPI) was finally reversed, marking a formal opening price in the industrial sector.
Industry sources, in fact, home raw material prices have a certain rate of rise every year, but companies can strengthen management, reduce the intermediate links and other compression costs. However, from October to December 2016, home raw material prices rose more than 10%, the production of soft furniture, the need for extensive use of the sponge was soaring 70%, most of the home business can not afford. A decoration company official said that in accordance with the current trend, this year is expected to 10% to 15% of cement prices, wire prices are expected to 5% to 10%, timber prices are expected to 15% to 30%, plastic is expected to price 30% , Aluminum is expected to price 30% … …
Industry reshuffle
After the Spring Festival home market artificial shortage, is the industry price increase another big reason. On the craftsmen, the normal price of 300 yuan to 500 yuan / day, woodworking monthly salary is too common. However, due to the relatively poor construction environment, fellow young people are increasingly reluctant to choose this industry. “They would rather go to the restaurant when the waiter to earn 2,000 yuan per month, do not want to do a year to work 300 days, 300 yuan a day paint workers … … this is 90,000 dollars! With the skilled master more and more scarce , Labor costs will only be higher and higher, will inevitably need to bear the consumer.
Transport prices and government environmental protection inspectors increased, but also the overall price increase in the home industry booster. September 21, 2016, known as the “history of the most stringent limit order,” the “overrun transport vehicles driving highway management regulations” formally implemented, many industries rely on “overload” to reduce the frequency of transport, compression costs of the unspoken rules were all broken, building materials The cost of transport per ton up 100 yuan.
In fact, the hot city of high prices have been overdrawn the purchasing power of consumers, and other real economy, the home industry even in the property market surging 2016 did not appear explosive growth, but has been in the “winter” state. Ministry of Commerce data show that in January the national building materials household climate index (BHI) was 71.35, the chain fell 24.82 points, down 7.17 points. National sales of more than building materials in January sales of 48.26 billion yuan, down 50.70%, down 30.89%.
The property market is no longer hot, in the face of overcapacity, rising costs, the reality of intense competition, home business in 2017 where the industry believes that the big brands, leading enterprises through private customization, high-end product development and other ways to transfer costs to consumption By. Low-end brand in addition to the scale of compression, cooperation with the giant, transformation and upgrading, has been unable to find a better response.
Analysts said the price increase for the transformation of the home industry is not necessarily a bad thing. “If you can not buy low-cost low-quality materials, small factories will not survive, virtually also a survival of the fittest, can promote industry optimization and progress.”

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