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Recently, the prices of bulk raw materials have continued to rise, and a "butterfly effect" caused by rising raw material prices is spreading across the relevant industrial chain.

u3000u3000 Recently, the reporter visited Dongguan City, Guangdong Province, where home furnishing companies are concentrated, and found that due to cost-driven factors, many companies in the fields of whole-house customization, furniture, and flooring have increased prices to varying degrees.

u3000u3000 There are more than 500 furniture and supporting enterprises in Dalingshan Town, Dongguan City. In October, many enterprises in the fields of whole-house customization and furniture raised their product sales prices by 8% to 20%. The person in charge of the company told reporters that the price increase of home furniture companies is a last resort. Because the cost of raw materials continues to increase, the raw material price increase notice he just received is the third time this year.

u3000u3000 Since 2020, the prices of furniture raw materials such as cartons, paint, wood, etc. have increased frequently, ranging from 25% to 30%. This has caused local home furnishing companies to face the dilemma of profit compression. Diao Shaoping, general manager of a furniture company in Dongguan, Guangdong: The overall production cost has increased by about 30%, but our selling price can only rise to 20%. The factory is also (experienced) very difficult torment, and the profit margin is also Getting smaller and smaller.

u3000u3000 The reporter learned that the price increase in the entire chain of the home furnishing industry is caused by a combination of multiple factors, among which the scarcity of foreign raw materials and the increase in logistics costs caused by the new crown pneumonia epidemic are the main factors. Especially in the home furnishing industry where wood is the main raw material such as whole-house customization, furniture, and flooring, 60%-70% of the wood is imported. Affected by the epidemic, overseas timber source bases have been suspended one after another, resulting in a shortage of supply.

u3000u3000 In the face of this wave of rising prices of raw materials in the home furnishing industry, some companies have raised product prices, some are in a dilemma between "rising" and "not rising", and some companies have begun to purchase more machines to improve production efficiency. Facing the tide of rising prices of raw materials, some companies had to raise the prices of their products, but with that came a significant drop in sales.

Xie Junhe, general manager of a furniture company in Dongguan City, Guangdong: Our sales of (this sofa) before November were about 50 (monthly), and now (price increase) has only passed more than 20 days, and the cumulative sales have fallen. More than 20 pens were made.

u3000u3000 In order not to affect sales and face the tremendous pressure brought by rising raw material prices, some companies insist on not increasing prices and are struggling to support them.