Secret: Five hard drives behind the floor

Under the pressure of a substantial increase in the cost of most wood materials, the floor has had to make a difficult decision in recent days: price increases. The floor company is clear: real estate is constantly under pressure, prices may increase, orders may continue to decline; if not adjusted, profits are difficult to maintain at a reasonable level.

Shenzhen floor price increases 2%-5%

This year's home building materials market, prices can be described as a major keyword. Although flooring companies once insisted on not increasing prices, they used the pressure of cost increases. People in the industry also believe that the price pressure has not yet made it impossible for flooring companies to bear. However, under the pressure of a large increase in the cost of most wood materials, the floor has had to make a difficult decision in recent days: price increases. The floor company is clear: real estate is constantly under pressure, prices may increase, orders may continue to decline; if not adjusted, profits are difficult to maintain at a reasonable level.

A person in charge of the Shenzhen Solid Wood Flooring Plant stated that rising production costs have made him difficult. However, he also admitted that almost all the floor manufacturers have silently raised the floor price of the floor due to rising production costs, which also led to a decline in orders. According to reports, an average of one square meter of solid wood flooring has been adjusted upwards by about 2% to 5%, and retail prices have risen by at least a dozen or more per square meter. “Before 100 yuan a square meters of solid wood flooring, now almost can not find.” Another industry insider also said that as Long Feng Tan rose 15 yuan per square meter last year, and now the price is 330 yuan / square meters. One ton of solid wood raw materials, only freight has risen to about 290 yuan. Coupled with the increase in the cost of labor costs and manufacturers' sales of facades since last year, companies have to increase product prices.

1. The sales of raw materials have soared, and the prices of mainstream wood products have risen Since the first half of 2010, the sales volume of most of the timber products of the Chinese timber industry has achieved year-on-year growth. The increase in the prices of different products has ranged but the growth potential is obvious. Most of the raw materials for wood flooring in China come from South America, Southeast Asia and Africa. Since the 2009 Copenhagen conference, countries in the world have further reduced the extent of deforestation, which has led to rising prices of raw materials. The lack of timber resources in the world and the increase in prices of the main floor materials have forced the competition in the flooring industry to increase.

On the other hand, the acceleration of the global economic recovery has further aggravated the demand for the timber market. According to merchants in the timber market, with the improvement of market conditions, sales of raw materials rose month by month, and shipments of timber from North America have returned to the highest levels of transactions since the financial crisis. The large stocks that had accumulated during the downturn have now been largely cleared. . In addition, due to the lack of upstream supply, rare wood species have even been in short supply. Affected by the shortage of upstream raw materials, it will inevitably increase the demand for resources in the homogenized products in the flooring industry and increase the competition among enterprises.

2, the property market regulation and cooling, affecting the floor industry Since 2010, the relevant state departments have introduced a series of control policies to curb house prices, crack down on real estate, the original hot property market once again suddenly cooling, the real estate industry's trading volume will then plummet, by This has caused some negative impact on the flooring industry. However, the downturn in the property market has a certain lag time for the entire household industry, at least until half a year later. Many people in the flooring industry are more inclined to "short-term negative long-term good" point of view, that the floor and the entire household industry will be a potential benefit of the new round of real estate regulation.

The industry believes that the downturn in the property market will not directly affect the demand of the flooring market. This impact is not only small, but will be limited to the short term and will not last long, so the rigid demand of the flooring industry will not be reduced. The state has introduced a series of policies to regulate and control the real estate industry, which is not necessarily a good thing for the flooring industry. Flooring companies should continue to innovate their marketing models and service models, and enhance their overall competitiveness and ability to withstand market risks through a rich product line and low-carbon and environmentally friendly development model.

With the country’s increasing emphasis on the rural market and the increasing demand of rural consumers for building materials products, many businesses have begun to realize that the rural market has gradually become a “new continent” in the market, and as the rural market continues to improve, The demand for wood flooring products in the rural market is huge, and rural areas have gradually become a key development direction for the building materials industry. The flooring industry, as one of the more active parts of the rural market, has also increased its share of the policies in the rural market. Compared with the government's subsidies for home appliances to the countryside, what kind of policies are currently being used for “building materials to the countryside”, especially wood to the countryside, are not yet clear. In addition, what kinds of enterprises and products can enter the "building materials to the countryside" directory is still unknown. Under such circumstances, many enterprises are still unabated in the distribution of rural markets. It can be seen that the rural market has great attraction and the market has broad prospects.

3, the floor industry, competing for the market for the 2010 floor market changes, lower floor prices, palaver floor manufacturers and distributors to become a common practice, but most of the low-cost promotions in the increase in sales have been rewarded. With the continuous changes in the market, companies are gradually adjusting the product structure and strengthening the rapid development of the floor. As a result, many flooring companies have increased the share of laminate flooring in new products in the second half of the year.

Talking about the market trend in 2011, all parties believe that the most difficult period has passed. Inexpensive laminate floors have become the best "weapons" for the market. Solid wood flooring is a resource product and will become more high-end due to raw material restrictions. However, with the improvement of people's living standards and the strengthening of environmental awareness, the solid wood flooring market still has some space.

4. The trend of low-carbon economy and challenges The development of the Copenhagen conference in the previous year has awakened the low-carbon awareness of people in all countries. People are increasingly aware of the serious challenges that global warming poses to human survival and development. With the continuous increase of the global population and economic scale, the environmental problems brought by the use of energy have become increasingly serious, forcing people to propose new economic development models. In order to protect natural resources and maintain ecological balance, people’s awareness of green environmental protection has increased. Countries around the world, such as the United States, Europe, and other countries and regions, have issued forest protection regulations accordingly. In China, it has already started to take various measures to protect forests. This undoubtedly exacerbated the burden and cost of raw materials for flooring companies and further exacerbated the competition for resource-based materials.

5. The outcome of the preliminary investigation conducted by the United States “Double-Counter” survey: 127 companies will be taxed at 70%. Recently, the US Department of Commerce announced the preliminary results of the “Double-Counter” survey on Chinese flooring, and the Fair Trade Bureau of the Ministry of Commerce ranked first-rate business. The secretary, Deng Dexiong, recently introduced at the annual meeting of the floor professional committee of the Wood and Wood Products Distribution Association that two companies in this "double reverse" case were ruled as zero tax rate, another one had a tax rate of 2.25%, and 127 companies It will be taxed at 70%. It is reported that the "double anti-" investigation involved 169 enterprises.

In the face of raw material prices, property market regulation, anti-dumping and other conditions, consumers have been unable to accuse the company and businesses of being irresistible. After all, a reasonable profit is the basis for maintaining the company's development. For consumers, we can only recommend what we can do. We do not have to pursue solid wood and do not need to pursue better wood species. We also have some smart products to use during the festival to find some special items.