Packaging / Advertising & Office

Spent the off-season, but died in the peak season! Raw materials must increase in price, customers must be cheaper, merchants must make profits, and manufacturers must survive. This is a desperate rhythm!

In recent days, the media have reported that most of the clothing orders for the Indian epidemic have returned, but the domestic foreign trade bosses have killed the news that they will not accept new orders. The truth behind it is extremely sad.

When Xiaobian Bao discussed this topic with foreign trade companies, they all said helplessly: “The price of raw materials has risen too fast, squeezing corporate profits. Therefore, even if there are new orders, many companies may end up losing money and earning money. "Yeah", so many foreign trade bosses are unwilling to take orders.

Since June last year, domestic commodities have continued to rise. According to CCTV Financial Report: Copper rose by 38%, paper rose by 50%, plastic rose by 35%, aluminum rose by 37%, iron rose by 30%, glass rose by 30%, zinc alloy rose by 48%, and stainless steel rose by 48%. Soaring 45%, IC rose 100%. Entering the end of February, the prices of raw materials were completely out of control, and they jumped wildly by 20% and 30%. Some specialty papers even jumped by 3,000 yuan/ton at a time!

The overall crazy price increase of industrial raw materials such as plastics, textile raw materials, copper, energy, electronic components, industrial base paper, etc. completely disrupted the marketing plans of terminal brands and was forced to raise the prices of commodities.

However, because young people pursue the lay-flat philosophy of "as long as I lie flat, the capitalists can't touch me", market consumption has been slightly weaker, and brand owners who originally expected to pass on costs through price increases have to reinvest in killing the enemy. Thousands, self-defeating price wars of 800.

Take this year's 618 as an example. After the depression caused by the epidemic, businesses had to cut their meat to clear their inventory in the first half of the year. Consumers were lucky enough to "sweep up a wave of wool."

The market is cruel, and the off-season most tests the competitiveness of enterprises. To put it in a sentence, "Today is cruel, tomorrow is cruel, and the day after tomorrow is beautiful. But most people die tomorrow morning". Please note that most of them died on the cruelest day of competition, not on the beautiful day.

However, Xiaobian Bao found that some companies still pursue the strategy of expanding production capacity against the trend and continue to use the past methods, using scale and low prices as competitive weapons, hoping that after a large number of peers die, they will become the ultimate king.

As everyone knows, because many families are burdened with mortgages and car loans, coupled with the high cost of pension, medical care, and education, many young people are beginning to lie flat, and it is difficult for the consumer market to stop falling and rebound. Compared with Southeast Asia, India and other countries, export processing has no competitive advantage due to environmental protection, raw material price increases, and labor costs. In addition, the manufacturing industries in Europe and the United States have fully resumed, and a large number of enterprises have migrated to Southeast Asia. Exports were exported in the fourth quarter of last year and the first quarter of this year. The order boom may be a flash in the pan.

Some psychologists have analyzed that people's memory is selective, and they tend to choose to remember what they are willing to believe and what they want to happen. This may provide some basis for "forgetting the pain after the scar is healed." Therefore, it is a bit more real than "to survive the off-season and die in the peak season", to "cannot survive the off-season and can't wait for the peak season".

In the current manufacturing industry, difficulties and opportunities coexist, as well as itch and pain. But this year's off-season will be more difficult and longer than in previous years, and packaging printers need to be psychologically prepared in advance! Don’t get through the off-season, but it’s cold in the peak season!