Foreign buyers increase the price of Chinese-made hardware and building materials

Chinese manufacturers have increased their export orders this year due to factors such as rising raw material and labor costs and expected appreciation of the renminbi. It is estimated that the export cost will increase by 15%. Some strong manufacturers will form alliances in this year, and the price will be strong. Some of the increased costs will be transferred to international buyers. The other part will only be digested by itself. Profitable products and high-margin customers.   In March, it gradually entered the peak period of international buyers' orders. In order to ensure product quality and delivery time, some Chinese manufacturers and overseas buyers no longer glued on the price, but gradually reached a consensus to jointly bear the rising production costs. Recently, under the organization of Guangzhou Foreign Economic Cooperation Bureau and Global Market Group, many international big buyers such as Japan Gaoxiu and XLNT have released the 2011 procurement plan, involving more than 2 billion US dollars. Parker Fairfield, the purchasing representative of XLNT in the United States, said in an interview that the markets in South, North America and the Middle East are growing very fast. Many products in these markets are from China. The company mainly helps customers to purchase hardware and building materials, and also for Gucci. HugoBoss and other well-known clothing brands are purchasing, and the largest customers plan to purchase $8 million in China this year. “We have more than 40 cooperative factories in China. However, it is getting harder and harder to find a good factory now. Due to rising labor costs, some Guangdong factories that have cooperated well before are relocated to the Yangtze River Delta or the mainland. We are somewhat worried about the quality of our products and the delivery time. At present, despite the rising prices of Guangdong products, the quality and delivery time can guarantee that our procurement places great emphasis on supply chain support and service level,” said Fei Yuxian. Wang Zude, a purchasing representative of Zutux in the United Kingdom, said in an interview that the company's Hong Kong-based division is mainly responsible for purchasing household products in Asia, 80% of which are from mainland China. In recent years, some electronics factories and textile factories in China have gradually moved to other countries or regions in Asia such as India and Sri Lanka. However, many countries and regions in Asia are still not in place in terms of quality control and logistics support, and new manufacturing is taking place in China. The change is no longer just to provide low-cost, low-quality products, more and more quality products, buyers are still willing to pay higher prices to buy good quality products, the competitive advantage of China Manufacturing in the next few years remains exist. Wang Zhongci also said that not only in China, the prices of goods purchased around the world are rising. This year, the company increased the procurement cost budget by 10% to 20%, and the 5% to 6% of the rising procurement costs were passed on to downstream retailers. The increase in procurement cost budget is mainly to strengthen the supervision of quality. He Yi, the sales director of Dongguan Tide Lighting Technology Co., Ltd., said in an interview with the author that this year, the company has more than 4,000 new product proofs, constantly improving the technical content and quality of the products, and has established cooperative relationships with high-end customers such as IKEA and Philips. And with long-term strategic partners to discuss how to face the growth of costs, share the increased manufacturing costs, while also adjusting their products and market structure, recently to the North American, European and other markets to investigate the market, if the conditions are mature, do not rule out Launched a self-operated brand based on current OEM (OEM) and ODM (independent design).

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