With the improvement of the domestic and international epidemic situation, various industries have begun to recover, and raw material prices have soared to new highs since the beginning of the year. Hardware and other components are facing huge cost challenges. For manufacturers, even if they want to increase the quantity, it may be a loss making tactic. In the face of skyrocketing raw material and cost prices, they must reconsider.

Recently, the national stationed personnel of Guzhen Lighting have reported that some dealers have received notices from manufacturers to adjust prices after the Chinese New Year. In order to gain a deeper understanding of the price changes of lighting fixtures across the country after the beginning of spring, this issue of the Guzhen Lighting News Center conducted a survey to explore one or two aspects.

Heilongjiang

10%-15%

In the past year, Heilongjiang Province has held quarterly county-level economic "arena competitions", and the county-level economy has shown a good development trend. In the face of the first wave of price increases after the holiday, I learned during my visits that many merchants have received price increase notices from manufacturers since February 25th, which will be officially implemented from March 1st, but the manufacturers have not yet provided specific price explanations. Based on the increase shown in the notification, many merchants have indicated that inventory sales will still maintain their original prices. Some merchants are preparing to go to the ancient town to have face-to-face negotiations with manufacturers and formulate annual procurement plans.

Shandong

5%-10%

At present, based on market visits, the growth rate of lighting product manufacturers is about 10%, with tower chandeliers, three proof flying saucer lights, finned factory lights, solar floodlights, and solar street lights showing more significant increases. Faced with another price increase, many businesses have taken insurance measures to recommend standardized conventional products to the following distributors while trying to stabilize prices.

According to Li Yang, the general manager of Linyi Nuoyu Lighting Appliance Co., Ltd., "Nowadays, raw materials in the factory are purchased at a daily price. However, in the face of price increases, manufacturers need to have profits to ensure quality. As agents, we need profits to provide services. Therefore, since the manufacturer announced the implementation of the new price, we have also started to implement the new price

Sichuan

About 5%

At present, the overall trend of merchants in the Sichuan market is stable. During the price increase wave before the New Year, many merchants have stocked up. Faced with the first wave of price increases after the New Year, many merchants have stated that they will implement the original price for customers who purchased in the early stage. Some products with small price increases will still be returned to old customers at the old price, but if the price continues to rise in the later stage, they will also consider adjusting the price.

However, due to the fact that the price adjustment by electrical manufacturers was only officially implemented in late March or early April, many engineering businesses will also report in advance to cope with the cost increase and prepare their annual inventory according to the market situation.

Hunan

5%-10%

The sharp rise in raw materials has led to major lighting manufacturers raising prices. In the Hunan market, ceiling lights, pendant lights, lighting accessories and other lantern products have seen a significant increase of 5% -10%.

During the visit, many businesses operating lanterns expressed that unlike lighting and electrical products, lanterns cannot be stocked quarterly. When raw materials skyrocket and manufacturers raise prices, we can only follow suit. Currently, consumers are no longer in urgent need of lighting purchases, so when the price of lanterns increases, they will turn to other products to replace them.

Henan

5%-10%

Since mid November 2020, many merchants in Henan have received price increase orders, but at that time, some merchants bluntly stated, "Business is not good in 2020, and they will absorb the price difference on their own." In the first wave of price increases after the Spring Festival in 2021, many lighting product manufacturers increased their prices by another 5% -10%. Most merchants adopted a slight stocking up, reduced their stocking volume, and adjusted based on the future price. Sun Peng, General Manager of the Henan Operation Center of Mulinsen Lighting Home Furnishings, introduced that some products will be priced synchronously according to the manufacturer's requirements, but he believes that the industry's price increase cycle will not be too long, and it is expected that prices will stabilize around June.

Fujian

About 5%

The general increase in raw material prices in the industry has made it inevitable for enterprises to increase their finished product prices. Currently, most Fujian businesses have accepted the unstable factors caused by the environment with equanimity. From the author's visits to the market, it can be seen that the vast majority of merchants currently make adjustments to their product sales process based on the actual situation of the product, especially in wholesale channels, while retail and engineering channels are not significantly adjusted. In terms of product reserves, we mainly focus on some standardized products such as high-voltage light strips and power supplies, and keep more inventory, while more conventional electrical products are more reassuring to stock.

Guangxi

About 10%

Last year, some merchants in Guangxi predicted that the "price surge" at the end of 2020 would not easily dissipate and would continue into 2021. Indeed, since the Spring Festival, both businesses operating lanterns and lighting and electrical equipment in the Guangxi market have received notices of price increases from manufacturers, and all have stated that they will officially raise prices on March 1st, with an increase of about 10%.

However, in response to this price increase, many businesses are still adopting a wait-and-see attitude in terms of stocking up. They will visit Dengdu Ancient Town in mid to late March to make a decision.

Hebei

About 10%

From market sampling research, it can be seen that various lighting products have skyrocketed with raw material prices, with an increase of around 10%. The vast majority of manufacturers have stated that they will officially raise prices on March 1st. However, according to the author's visit, most businesses in Hebei had already stocked up a lot of goods at the end of last year, and currently, except for a few individual products, their warehouses still have inventory. Among them, Liu Jianqi, the general manager of Hebei Yinuo Lighting, stated that at present, they will not blindly stock up due to price increases, but will adopt a steady and steady strategy, with sales as the basis, reasonable inventory, and appropriate stocking.

Hubei

5%-15%

In order for enterprises to operate normally, price increases are inevitable. Based on our visits and understanding, customized products in the Hubei market are currently experiencing the most severe price increases, with an increase of over 15%, while other types have relatively stable increases. Many local operation centers have issued price adjustment notices to agents and set time limits for dealers to replenish goods in a timely manner during the buffer period.

Compared with the price increase notices issued by various manufacturers, Yu Jingxiang from the Top Pearl Hubei Operations Center said that the price increase of Top Pearl is more humane. Next, we will make corresponding adjustments to product prices based on the magnitude of the price increase, and also replenish according to market demand.

Shanxi

5%-10%

According to data obtained from visiting nearly 5 markets in Taiyuan, big and small, and dozens of distributors mainly engaged in retail, wholesale, and engineering, major brand manufacturers have not yet raised prices.

According to the classification of lighting fixtures, more than half of the light strips, switches, bathroom heaters, and non-standard engineering manufacturers have adjusted their prices after the Spring Festival. Although this price increase has had the greatest impact on these categories, Shanxi wholesale distributors are also very smart and have prepared a certain amount of inventory before the year. Moreover, most wholesale merchants actively face the problem of price increases and reserve hot selling products. In addition, many businesses have stated that if the manufacturer's price increase this time is a short-term behavior, they will maintain the original price for the following customers.