So far, due to the rising prices of raw materials and other factors, the bathroom hardware industry has not only ushered in his "spring" but has been questioned by consumers. Is the "profiteering era" of profits really gone forever? ? Indeed, with the rising prices of raw materials and the continuous expansion of the consumer market, the market competition in the hardware industry is also growing, and the era of profit violence in the hardware industry is gone forever, and profits are beginning to decline. Taking the current steel price as an example, the price of steel rose by 100 yuan/ton in the day of March 17, 2011. In less than one month, the price of various steel products rose by 300 yuan to 500 yuan per ton. Wait. The rise in steel prices has made the steel production industry, which had less original profits, unable to do anything. It generally reflects that profits can almost be zero, and the economic recovery is almost offset. Taking bathroom hardware as an example, the biggest cost of producing a faucet product is the cost of raw materials. At present, the faucet products are mainly made of copper materials, and the price of copper is about 38,000 yuan/ton. According to industry insiders, raw materials The cost accounts for more than 70% of the total production cost. According to the domestic gross profit margin of 30%, the cost price of a faucet is about 200 yuan. 2011 is the implementation period of the “Twelfth Five-Year Planâ€. The mold industry ushered in the spring. The general experts are optimistic about the development space of the mold. It was predicted that during the “Eleventh Five-Year Plan†period, the market share of China's mold industry will reach 120 billion yuan. But the reality is that because of the low level of contact in high-end industries and the threat from foreign-invested companies, their profit margins are also pitiful. Many hardware and electrical enterprises, including sanitary hardware companies, are all mixed, and they face a low profit margin. The comprehensive analysis is no exception to the following: 1. There is no professional market to cultivate the general consumer to buy hardware products is the principle of proximity, in a random groceries Shops and daily supermarkets have been purchased, which is closely related to the hardware industry not cultivating the professional market. The traditional hardware product distribution center is a systematic marketing strategy, and the lack of relevant regional protection, the stable price system is even more difficult to talk about. Once the professional hardware market is formed, with the strong supervision of the market, it can guarantee that the hardware enterprises that are stationed in the house are worthy of the name, forming the consumer's purchase centripetal force, avoiding the phenomenon of peers coming in and blindly purchasing goods. 2, no comprehensive brand ability The market is generally circulated in the hardware products, the style is single, outdated, and the work is rough, and even without brand protection, so you can not get the consumer's trust. According to relevant market research, 45.3% of hardware consumers use the brand as the primary demand for purchasing products when purchasing hardware products, which implies that it is even more difficult for an unnamed brand to stand firm in the market. In this era of tedious information, the brand is obviously a target, which can focus on the people with fixed traits under their unified management, so as to help the promotion. 3. Foreign-funded enterprises snatch the market Many of China's hardware products are produced in small workshops, especially in the mold industry. Because of their lack of professionalism and exquisiteness, many foreign-funded enterprises have opportunities to take advantage of. On the contrary, most of the foreign mold companies are “small and specializedâ€, “small and fineâ€; the mold self-production ratio is as high as 50% or more, and more than 70% of foreign products are commodity molds. The proportion of large, precise, complex and long-life molds in domestic molds is only about 30%. More than 50% abroad. The ratio of imports and exports was 4.1:1 in 2003; net imports after import and export were US$1.03 billion, the country with the largest net imports. 4, raw materials rose to the public from the beginning of last December, the international copper price has repeatedly hit a record high after breaking through 9,000 US dollars / ton. Shanghai futures market data show that copper prices rose by 32% year-on-year in half a year, and the trend of steel prices rising for two consecutive months will continue into the first quarter of this year. The mainstream brands of air conditioners, refrigerators, washing machines, range hoods, stoves, sanitary ware, disinfection cabinets, water heaters, etc., will continue to have a price increase of 5%-10%. "Compared with the end of last year, rising raw material costs have led to a 5% to 8% increase in production costs," said Zhou Xiaotian, president of Hisense Kelon. The rise of raw materials in 2010 is the hot word of hardware development. In 2011, it still does not reduce its hot agenda. The rising of raw materials has also raised the price of general products. At the same time, the room for promotion of net profit can no longer be compared with the past.
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