Bathroom products are about to increase in price

Kitchen and bathroom headlines 2022-06-07 19:01 Published in Guangdong

NPD's data in February 2022 pointed out that the average price of sanitary products in the month increased by 8%, and the sales volume of products also fell by 2% in the same period. Finally, it was concluded that the price increase began to affect the sales volume.

Rising raw material prices lead to a decline in corporate gross profit margins

Just as the NPD survey found that the demand for the bathroom market in the United States has declined due to price increases, whether the same phenomenon will occur in the Chinese market is of concern. From the perspective of revenue growth in the first quarter, the performance of domestic health companies varies, among which Songlin increased by 49.30%, Jianlin increased by 6.67%, Ruierte increased by 22.46%, Huida Sanitary Ware and Seagull Housing Industry fell by 4.20% respectively. and 2.89%.

However, the increasing production cost of various enterprises is a common point of global enterprises. It is manifested that with the increase of operating costs, the gross profit margin of enterprises shows a downward trend. For example, Huida Sanitary Ware will increase its operating costs by 27.45% in 2021 and reduce its gross profit margin by 3.67%; Diou Home Furnishings will increase its operating costs by 16.13% and gross profit margins by 4.51%; Songlin will increase its operating costs by 29.54% and gross profit margins by 5.01%; Cost increased by 29.88% and gross profit margin decreased by 4.29%.

At present, the prices of various raw materials are still in the upward range. For example, the raw material titanium dioxide required for ceramic products, its domestic production giants China Nuclear Titanium Dioxide and Longbai Group have successively issued price increase announcements since the second quarter. In fact, the titanium dioxide industry has announced price increases three times since this year. According to relevant information, the prices of more than 50 kinds of chemical raw materials have risen compared with the same period last year, and the prices of some chemical raw materials have even doubled year-on-year.

Looking ahead, many companies believe that upstream raw material prices will continue to rise. Companies have to raise product prices to maintain profits, and it is expected that more companies will start raising prices in the second half of the year.