- flax product price increases Analysis With the relaxation of the international financial crisis, the global economic development have entered a relatively stable period, and experts say such period is "post-crisis era." Because the root cause of the crisis has not been eliminated, and the crisis is not over, there are still many uncertainties in the world economy. In the first half of the financial crisis, although there were not many orders, some outstanding enterprises still achieved export growth due to the stable exchange rate of RMB and lower raw material prices in the first half of the year. Orders, which many have called "post-crisis times," are getting warmer but companies are afraid to pick up orders more easily as the evidence suggests that the more you take the more you lose. Export-oriented hemp-spinning enterprises suffer. In the early stage of the financial crisis, in order to clean up inventories and realize cash flow, enterprises had to push down their prices. In the post-crisis era, the increase in orders and the rise in production costs made it hard to raise prices again. "At the beginning of the financial crisis, selling prices were tightened because of inventory cuts, and now the economy is improving, prices are hard to recover. Many people doing business know that pricing is a learning process. Once the price starts to go down, think again It is very difficult to lift it up. "Xu Jixiang, president of China Hemp Industry Association, said. In the early days of the international financial crisis, for self-help, the enterprise may not themselves realize it is already digging its own trap. Now, the trap has been initially formed, but also entered the post-crisis era, companies can jump out of this trap? How deep the trap In describing their approach to deal with the international financial crisis, most business executives told reporters that their approach is "energy-saving emission reduction, technological innovation", few people told me that he actually reduced the price in exchange for part of the market . The biggest risk of the financial crisis is the shrinking of demand. According to the law of the impact of supply and demand on prices, oversupply, the price will inevitably decline. When enterprises are faced with the survival test of capital flow difficulties, giving up profits is its last resort. "At that time it was a little profit, or no profit but also sell the product, otherwise the capital is not working, the company has to go bankrupt." A linen company manager told reporters. In such circumstances, Rangli sales become a lot of flax enterprises choice. Therefore, from January to February, the volume of export trade has increased while the unit price has declined. It is understood that hemp textile industry average profit margin of about 3%, and this let, the rest of the profits will be minimal. At the same time, the post-crisis era is approaching and the rise in production costs further increases the depth of this "trap." Mafang special work more than 1 ton of linen production in about 500 people, about 10 times the production of one ton of cotton yarn. This year's "labor shortage" phenomenon is more serious than in previous years. In previous years, when the Spring Festival was short of labor shortage, this year seems to have the momentum for a year. To raise wages for workers to improve the accommodation environment, the recruitment of hemp-spinning enterprises still difficult to improve. This is because linen production conditions are tough, the factory humidity and temperature are relatively high. "More people choose to go to the dishes in the restaurant than at the same level as the workers who work in hemp, at least in restaurants." A reporter said in an interview with a linen mill in Zhuji, Zhejiang Province. And product prices on the difficulty of the corresponding is that hemp raw material prices have risen. According to a number of business executives returned from the study in Europe introduced, the price of flax raw materials in Europe is particularly strong call. It is estimated that the next move will be, raw material prices will face a new round of rising cycle. If this behavior of price hikes is linked to the "collective" price hikes of natural fiber materials in the world, the price of such raw materials is more likely to rise. Natural fiber raw materials are prices. Data from China's cocoon and silk trading market show that the price of cocoon has doubled since the beginning of 2009 and rose to 92,700 yuan per tonne by mid-April this year. Some experts predict that the price of silk products will rise 10% ~ 20% in the near future. Cotton also usher in a new round of rise. Zhengzhou Commodity Exchange cotton contract (1009) price from 1.065 million yuan / ton up to the recent 1.7335 yuan / ton, an increase of nearly 70%. Wool, the China Wool Synthetic Information Index rose from the lowest point of the previous year nearly 42.00 yuan / kg, rose to 55.53 yuan / kg, an increase of 32%. In the past, when prices were tumbled into stockpiles, the cost of labor and raw materials went up straight. From this we can infer: this trap is not shallow. The possibility of jumping out of the trap is not shallow, does not mean that there is no possibility of jumping out. One of the better ways is to choose to produce differentiated products. According to Beijing on the Sky Engineering Co., Ltd. Zhao Zhigang introduced recently, a client from Jiangsu Changzhou Meiyuan Group ordered a small amount of 75 linen flax yarn, unit price 380,000 yuan / ton. Calculated by unit weight, the price has exceeded the weight of Mercedes-Benz E300 unit. The United States source of high count yarn not only sell well the price, delivery time should be more than 3 months, we can see the high branch of linen tight and Jingui. To increase the price of flax products, many companies rack their brains. But the fact is so simple, high-quality yarn production, not only in short supply, but also pricing. Changzhou Meiyuan Group was able to produce such a high count yarn, but also the result of the financial crisis "persecution." Since the financial crisis, customers hold a wait and see attitude, the volume of each order is small, the quality requirements are very high. "We are in the process, I feel a small amount of good quality good high yarn sales. Because other companies can not do, so the price of our products will be higher than ordinary yarns." Zhou Hui, chairman of Changzhou Meiyuan Group said . Changzhou Meiyuan Group "price increase" because other people can not do it. Procurement companies like to use such a means of pressure: the same yarn, to tell you another business offer lower than your quote. However, when companies have the confidence to say that other families can not make such products, they will not only enjoy the right to raise prices, but also have the potential to enjoy pricing power. After all, this is still a business positioning problem. Producing differentiated products is the most important factor to get out of the trap. Some enterprises and Changzhou Meiyuan Group's situation is different from the beginning of their production is very large, there was a "big ship accidental turnaround" situation. Even so, you can choose to produce differentiated products. This difference not only refers to the high count yarn, it can also refer to the normal count of good quality yarn. In short, raising prices starts with raising one's "identity." When you can come up with good quality, differentiated products, the price increase is no longer an illusion, and even pricing rights are likely to be in their own hands.
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