On December 31, according to several media reports, IKEA, the world’s largest furniture brand, will raise its price by an average of 9% in various markets due to the increase in transportation and raw material costs.
In this regard, the China Securities Journal China Securities Taurus reporter asked IKEA China for confirmation. The relevant staff of the company told reporters that the price increase was carried out this week. At present, the prices of IKEA ports are already the prices after the price rise. The price increase is carried out by the whole category, but not all commodities. Whether the price will continue to rise in the future has not been notified.
coping with rising costs
“The price increase is mainly to cope with rising costs.” The above-mentioned staff of IKEA China said, “during the epidemic, raw materials and transportation costs have increased, and the company has been actively responding. Recently, it has increased the prices of some products of the whole category, but not all products. There is no detailed list for the specific price increase amount.”
According to the above-mentioned staff of IKEA China, this round of price adjustment includes not only major offline stores across the country, but also online channels such as tmall platform and online mall.
“Some categories of products have some discount activities, which are limited time discounts. In addition, there is no action to reduce the price of old products.” When the reporter asked whether the price increase products were updated, the above staff of IKEA China said.
In response to the cost rise mentioned by IKEA China, the reporter observed that many listed companies in the household sector mentioned the shortage of energy supply and the rise in the price of raw materials in the third quarterly report.
Nanjing Olo Home Furnishing Co.Ltd(603326) in the third quarterly report, it was disclosed that the energy supply was tight. Under the influence of the policy of power and production restriction, the production cycle of enterprises was lengthened, and the production cost was increased due to factors such as the price rise of raw materials.
several A-share home furnishing companies raised prices
For the rising cost side, some home furnishing companies pointed out in their recent announcement that in addition to transmitting part of the cost through price increase, they will also increase fine management to reduce costs and increase efficiency.
According to the investor relations record disclosed on the evening of December 27, the price rise of bulk raw materials this year has a certain impact on the company’s gross profit. However, some of them will be transmitted through price increase, while increasing fine management to reduce costs and increase efficiency, including improving the utilization rate of raw materials and plates, improving the per capita output value, and purchasing will also prepare goods on a timely scale. In addition, with the completion of Banff factory 4.0 intelligent production line, the efficiency will be significantly improved and the personnel will be released to a certain extent.
Guangdong Piano Customized Furniture Co.Ltd(002853) pointed out that at present, there are most popular products in the market, and the competition of popular products will become more and more intense in the future. The company is positioned at the middle and high end and can be extended upward and downward. Relatively complete high-end brands have a certain cost performance due to the company’s scale effect. Compared with popular products, they have more premium space in products and services. In the future, the brand premium will be increased by upgrading the company’s Si and VI, optimizing the company’s terminal stores, displaying high-end effects, improving the service awareness of the marketing system and strengthening product functions.
The shading fabric enterprise Shandong Yuma Sun-Shading Technology Corp.Ltd(300993) said that the price was raised twice in 2021, the first in March; The second Chinese business was completed in October, and the international business has been basically completed. Because the company has established a long-term and stable cooperative relationship with customers, the transmission process of price increase is very smooth.
(China Securities Journal)
