Jinjiang Shoe Leather Enterprise: Raise The Price Not To Mention.

90% the enterprises are deeply influenced by the survey. 57.9% of the enterprises think that the cost increase has a great impact on the enterprises, and another 36.8% of the enterprises clearly indicate that the impact of rising costs on enterprises is very large.

Wu Jianguo, general manager of the Qing Mei shoe material factory, told reporters: "rising costs not only directly compress the profits of enterprises, but even have reached the point where shoe material enterprises are living.

As the cost fluctuates too much, some smaller shoe materials enterprises have reached an unsustainable situation.

When asked about the reasons for the rise in costs, "upstream raw material prices" and "rising labor costs" became the two most popular answers to respondents. The enterprises that chose these two options reached 89.4% and 85.2% respectively.

At the same time, many enterprises in the survey also said that in addition to the price of raw materials, labor costs are also one of the reasons.

In order to solve the problem of difficulty in recruitment and hard work, enterprises have to make great efforts to improve workers' living environment and improve their treatment. This increase in expenditure has also largely led to an increase in the cost of production.

Increasing the cost of rising prices and increasing costs will squeeze the profit margins of enterprises. However, shrewd bosses will not sit back and watch their profits being eroded.

In the survey, we found that "increasing revenue and reducing expenditure" is the most common way for enterprises to cope with rising costs.

84.2% of the enterprises said they would consider "appropriately raising their own product prices". 52.6% of the enterprises thought that "improving the added value of products" is a more effective way to expand the profit space. At the same time, more than 89.4% of the enterprises clearly indicated that they would "strive to strengthen internal management and reduce internal cost".

"We can improve this situation from our own point of view, such as strengthening internal management, improving production efficiency, increasing the added value of products, etc.

While strengthening internal management, we are constantly developing new products, extending product lines and exploring new markets.

Ya Ke Food Co., Ltd. always helps Zhuang Gangyi say.

He Bangqi, executive manager of Xingye leather Polytron Technologies Inc, also believes that strengthening internal management and reducing internal costs is one of the most direct and effective methods.

In the process of interview and investigation, many enterprises have repeatedly mentioned that we should strengthen management and reduce internal costs. We can see that the concept of "throttling" has already penetrated into the minds of many Jinjiang entrepreneurs.

It is true that improving efficiency and reducing internal friction are the enterprises' development in the process of development. But this is even more important when production costs continue to rise and profit margins continue to shrink.

Raising prices, learning properly and raising the selling price of their products is another common way for many enterprises to cope with rising costs after "strengthening internal management and reducing internal costs".

Because of the different nature of the industry, the way to improve the internal management of enterprises is also different. Similarly, the way of raising prices is different.

63.2% of the enterprises will "directly increase the final price of the product", while 36.9% of the enterprises will also consider "raising the dealer's agency price", and the enterprises that choose to "increase the price of new packaging" will reach 31.6%.

Wu Zaitian, assistant president of Limited by Share Ltd, told reporters: "taking into account the particularity of sales channels in the food industry, the company intends to ease the increase in the cost of business by increasing the dealer's price next month."

Deng Qinghui, director general of Fuma food group, told reporters: "for fast moving consumer goods industry, changing new packaging and attracting more sophisticated outsourcing is a very important part, and also an indispensable factor to ensure product price increase."

In the process of investigation, different enterprises have different views on the way of raising prices, but one thing is that almost all the enterprises interviewed emphasize that in the fierce competition environment, simple product price increase may not be recognized by the market, and the price must be supported by quality and brand.

"If the price of the product is improved but the quality is not improved, the market may not buy it. In the end, it may lose some consumers.

Therefore, while raising the price, it should be backed up by improving product performance. "

Liao Zhihua, executive manager of Shanxi Engineering Machinery Co., Ltd.

Hu Chengchu, vice president of Li Lang (China) Limited, said: "to improve the price of our products, the most fundamental thing is to enhance the brand status.

Those famous international brands can still be sold at a relatively high price, precisely because they already have a high brand position, which determines the price of their products.

In the survey, some enterprises also expressed the hope that they could raise their prices through industry consultation.

Shi Mingli, general manager of Xinyu zipper weaving Co., Ltd. said: "the price adjustment of a single enterprise may affect the industry competition in the whole market, resulting in a certain degree of disorder competition.

If we can guide the industry associations and adopt the way of price negotiation through industry consultation, we may better ensure the orderly competition of the whole industry.