Abstract The price fluctuation of raw materials has had a great impact on some domestic tool companies. 1. Enterprises that do not pay attention to product quality These enterprises are often small new-sized enterprises. The added value of products is very low. There are no high-quality customers, no stocks, and no market competitiveness. In the price of raw materials...
The price fluctuation of raw materials has had a great impact on some domestic tool companies. 1. Enterprises that do not pay attention to product quality
These enterprises are often small new-sized enterprises with low added value, no quality customers, no inventory, and no market competitiveness. When the wave of rising raw material prices hits, they will first feel the pressure of price increases. Coupled with the pressure of inflation and credit crisis, these small enterprises will often choose to use low-end smuggling materials instead. Fill it up. In order to achieve short-term benefits by reducing quality, it will definitely lead to the decline or extinction of enterprises.
2, wait and see enterprises
These enterprises have developed to some extent, and some of them have high-quality customers, but they lack long-term planning for enterprises and have serious vicious competition. Most companies have a certain amount of inventory before the price increase. In the face of rising prices of raw materials, they choose to compress their profit margins, retain large customers, wait for the market to buffer, and then re-enter the market. For some small customers, they will choose to compress the market without taking orders, or shoddy.
Observing enterprises can not withstand continuous price increases, their old customers currently accept the price increase of about 20%, due to the low added value of products, a company said, "If last year there is a 30% profit tool, this year with the same The amount of material done is also no money to earn."
3. Enterprises that focus on brands
Such companies are optimistic about price increases, and price increases are an opportunity for them to develop. Beijing Wald Superhard Tools Co., Ltd. said that the price increase is not very big for me, I hope it will go up. A brand is an intangible asset and a common language in the international market. The brand is the soul of the product, the spokesperson of the product, and the key to determining the outcome in a commercial war without smoke. The sublimation of an enterprise must be achieved from product to brand.
4. Well-known foreign companies
Well-known foreign companies are less affected, because their original products have higher added value, higher profit margins, and raw material price increases have no significant impact on them, and their customers are quality customers.
Regarding this phenomenon, the relevant experts explained that this is the inevitable development. Every big rise or fall will promote the industry to reshuffle, so don't be nervous. Only by making products and improving product quality, high value-added products will not have much impact. The middle and low-end products will have a big impact on the amount of running, and even close down. Every time a small and medium-sized enterprise goes bankrupt, its production capacity will be close to that of a big company. After experiencing market changes, companies that have developed with their distinctive products have accumulated talents, technologies, products, brands, and management to make them more competitive, and their production capacity will gradually move closer to these enterprises. New-born enterprises without core competitiveness will gradually be eliminated by the market in the industry reshuffle.
The development of an industry is from the germination stage to the explosive growth stage, and then through the industry reshuffle, screening out competitive enterprises, this is the law of development. This kind of price increase will promote the development of the industry and promote the adjustment and upgrading of the industrial structure.
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