“Sponges have increased by 45%, steel and paper prices have increased by 30%, and zinc alloys have even increased by 70%.” A few days ago, at Dongguan Novartis Furniture in Daojiao In the office building of the company, the person in charge, Luo Li, looked at the sponge quotes that kept beating on the computer screen and showed a helpless smile.
The news that “Due to the sharp increase in raw materials, the furniture industry is facing an industry-wide price increase” has recently spread across the circle of friends of people in the Dongguan furniture industry. Since the beginning of this year, the main raw materials for the furniture manufacturing industry such as wood, sponge, and chemical fiber have been booming, which has really put pressure on furniture companies.
However, under high cost pressure, Dongguan furniture companies are not without strategies to eliminate cost pressure. The reporter visited and found that Dongguan furniture companies such as City Window and Mousse have increased the added value of their products through cross-border integration and customized production to reduce the price sensitivity of the target group, break through the high-cost dilemma, and accelerate transformation and upgrading.
In fact, sponge and wood are important raw materials in the furniture industry, and both have set off a rare wave of price increases this year. According to statistics, since September, the price of sponge upstream raw materials has continued to rise. The sponge raw material “polyether polyol” has increased by nearly 4,000 yuan per ton. The domestic TDI (toluene diisocyanate) price has increased from the low of 11,700-11,800 yuan/ton in March. , soaring to around 23,000-35,000 yuan/ton by October, setting a new high, and is likely to rise to around 48,000 yuan/ton.
The cost of sponge accounts for nearly 30% of the total cost of upholstered sofas. It is also one of the important materials for mattresses. The rise in sponge prices has put many furniture companies under great pressure.
Some furniture companies have responded to price adjustments
For the furniture industry, which has a relatively high proportion of raw material costs, the impact of the skyrocketing prices of wood, sponge and upstream metal materials is obvious. Luo Li told reporters that because the price of raw materials has increased so much, it will be difficult for Novartis Furniture to pass on the cost pressure to downstream even if it raises product prices. “Some raw materials have doubled in price, but this is impossible for our products. If we want to completely pass on the rising cost of raw materials, a sofa that used to sell for 10,000 yuan will now sell for 20,000 yuan. Is it possible?”
With raw materials soaring, many Dongguan furniture companies have had to choose to adjust prices. “Actually, we have already raised prices since the rising tide of raw material prices began. The prices of all products have increased by about 5%.” Zhao Jiayao, vice chairman and president of Dongguan City Window Furniture Co., Ltd. bluntly said that this 5% price increase is also It can only slightly alleviate the pressure of rising raw material costs, but cannot solve the fundamental problem.
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