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BEIJING, Nov 1, 2010 - (ACN Newswire) - Galanz products, washing machine, freezer and others have raised prices. Increased prices of products were found across 40% of exports. While 60% of regular export products still remained the same price, compared with the prices and profits, Galanz has preferred not to give up the market scale.
Now, the RMB appreciation brings great pressure on export-oriented enterprises. Hardware-wholesale.com analyzes that in the long run, RMB appreciation is a big trend and it will continue to move on. If RMB appreciation eventually rises to 6.29 per US dollar, at that time enterprises will face severe life-and-death tests.
Hardware-wholesale reports that Galanz and Midea, whose microwave ovens are mainly for export, account for a 70% global market share. Even so, that these enterprises want simply through negotiation to raise prices is still impossible. International customers would only be those few who can pay the higher prices of products.
Hardware-wholesale reports that overseas economies haven't completely recovered, economic recovery momentum is still slow, and foreign customers hope to reduce inventory to avoid additional risk. Overseas customers willing to raise product prices are those who have high value-added products, home appliance with innovative design and new functions, with fast delivery ability.
Hardware-wholesale.com thinks that Galanz raised 10% of prices of no choice, because the raw material cost increases bring great pressure to enterprises.
Hardware-wholesale.com analyzes that besides the exchange rate, enterprise costs for home appliances increase due to raw materials, labor force and research expenditure. Currently, raw material cost increases are only an indirect effect, but the impact is larger, because the raw material costs account for approximately 80% of home appliance prices. Meanwhile, the RMB appreciation advantage has not been reflected in raw materials procurement.
Contact:
Hardware-wholesale.com
Tel: +86-10-65569770
Email: my@hardware-wholesale.com
www.hardware-wholesale.com/
Topic: Research / Industry Report
Source: Hardware-wholesale.com
Sectors: Daily Finance, Consumer Electronics
https://www.acnnewswire.com
From the Asia Corporate News Network
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