This year’s boom of the sons and daughters of the Year of the Dragon brought fire to the infant and toddler market. The industry has already predicted that the price of infant products will rise naturally. But Wandashan, the domestic powdered milk, became the first dairy company to start firing at a price increase in 2012, allowing both industry and consumers to I do not quite understand.
In an interview, a person from the customer department of Wandashan said that the price increase was only for milk powder. Since February 21st, an ex-factory price increase of 10% has been implemented, and at the same time, price notifications have been issued to distributors across the country. For inventory reasons, the adjustment of the supply price and retail price of distributor terminal stores was completed before March 31, and the upper limit of dealers was set. The maximum increase of terminal prices should not exceed 12%. Reporters visited the Jinan market to see that, from the point of view of some products that rose, the increase in the price of milk powder per can range from 20 yuan to 30 yuan.
In fact, after the melamine incident in 2009, a number of domestic milk powder brands had quietly increased prices by about 10%, but the market was sceptical and the sales volume declined significantly. Since then, domestic milk powder prices have remained unchanged.
Milk prices did not reach the Jinan Wanda <br> <br> While milk prices, the price increase does not cover liquid milk, but there is news late last year, including Yili, Mengniu, Sanyuan 9 brands The dairy products in the market have to increase their prices. Recently, the news that Guangmilk Enterprises entered the first milk price increase from March 1st to make domestic liquid milk is also a concern.
During the interview, the reporter learned from the Shanghai headquarters of the Bright Dairy Company that the price adjustment of domestic milk has been completed and that Shandong is not in the price adjustment zone. “At present, only Nanjing, Shanghai, and Hangzhou have adjusted prices and floated about 5%.†The reporter learned from the branch office in Shandong that Jinan not only received notifications of price increases, but also had gifts worth 20 yuan to 30 yuan. The prices of Mengniu and Yili, two major brands, have remained stable for the time being, and sales staff said they have not received notification of price increases in the near future.
Although the prices of domestic liquid milk prices have not yet been scraped to Jinan, the reporter learned that the price of imported liquid milk has risen. Lishan Road, a supermarket, imported liquid milk exclusive a freezer, the reporter observed the nominal imported from New Zealand, Australia, Germany and other brands. According to sales staff, sales of imported brands currently account for only about 3% to 5% of total sales. In January this year, prices were adjusted, with an average increase of around 10%, because consumer groups were relatively fixed and did not affect sales.
Problems are not raising their prices to survive <br> <br> It is understood that Wanda is a local enterprise in Heilongjiang, Shandong market is its focus on training market, of infant milk powder series larger proportion of domestic milk market in Shandong. It was learned from the dealers that since the end of 2008, Wandashan has raised its price for the first time. At present, the price of international milk sources is relatively stable, and Wandashan’s price increase does not seem to be a gimmick. The reporter called Wandashan Dairy for this purpose.
“In the past two years, the company has been insisting on internal digestion. Now local prices in Harbin have doubled compared to 2009, and companies have been unable to absorb the rising costs.†On the phone, Zhu Weihua, a staff member of the Wandashan Dairy Enterprise Information Department, spoke to reporters. Rough water, raw milk purchase price, transportation, labor and other comprehensive costs have risen, no increase in prices, business survival has become a problem. According to reports, Wandashan is a state-owned enterprise that has been strictly in accordance with the guidance price of local governments to purchase raw milk, and the guide price is based on the protection of dairy farmers, which means that the cost of the milk business is higher than other dairy companies. Out of 20% -30%, which also exacerbated cost pressures.
Although Wandashan put the cost first in the interview, Zhu Weihua said that the quality of Wandashan is not lost to the domestic first-line brands, revealing another reason for rising prices. It is understood that this time, Wandashan did not adjust the price of liquid milk, and the weight of the cost was much lighter. In this regard, Zhu Weihua admitted that liquid milk is a fast-moving consumer product and that the market is fiercely competitive. Currently, Wandashan liquid milk is still in In the period of opening up the market, the prices will not be lightly raised.
Domestic milk prices pros Jie <br> <br> recent years, frequent milk powder market price. From the price list, it has always been Wyeth, Nestle, Mersin and other foreign brands turn up, but can not find the shadow of domestic milk powder. Some dealers said that it has become a common practice for foreign milk powder prices to increase every year. There is nothing strange about this. However, for Wanda Hill price increases, some consumers said that the price is the advantage of domestic milk powder, after the price increase is better to buy imported milk powder. Wandashan first to raise prices, whether it caused changes in the industry structure? In response, the reporter interviewed Wang Guangwei, an expert in marketing planning.
Wang Guangwei analyzed that the rising costs of raw materials, labor, and operations are the ones on the one hand; the promotion costs of external promotion and various publicity also account for a certain proportion; at the same time, consumers are more inclined to foreign milk powder after the melamine milk powder is exposed. The high price means that high-quality mentality also encourages domestic milk powder prices; In addition, vegetable oil and other food prices are rising, and consumers' price tolerance is also one of the reasons for domestic milk price increases.
“The Wandashan price increase will help improve the brand image, but at the same time it will lose a part of the market. In general, the benefits outweigh the disadvantages.†Wang Guangwei said that as a state-owned company, Wandashan, this price increase has a wind vane effect, meaning that the entire The trend of the industry, coupled with news of foreign milk powder prices, in 2012, milk powder market rose or a foregone conclusion.
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