The “Double Eleven” that e-commerce platforms, merchants and consumers have all looked forward to has come to an end. What is different from the past is that behind this year’s shopping spree there are faint disturbances from many negative factors in the upper reaches of the market. Behind the record highs in e-commerce pre-sales is not only the explosion of consumers’ purchasing power, which has been dormant for a year, but also the concerns of market terminals about the upstream situation.
For example, due to factors such as the continuous rise in the price of cotton raw materials for consumer goods such as textiles, clothing, and daily necessities in recent months, the Double Eleven period is regarded by consumers as a “window period” for stocking up. ——The high cost of raw materials and other products has already reduced the profits of merchants. When the hot promotions pass, I am afraid that the market will usher in a wave of price increases.
The price increase of materials has caused price fluctuations of some commodities
Double Eleven, which started preheating on October 20, will go on sale on November 1. In the first wave of Tmall’s Double Eleven, the transaction volume of 2,600 brands in just one hour exceeded that of the whole day last year. Over 190 million items were sold on JD.com’s platform within 4 hours. The two leading anchors, Li Jiaqi and Wei Ya, had a total live broadcast room sales of 18.9 billion yuan on the day of pre-sale, which was several times higher than last year.
The online Double Eleven pre-sales are booming, but a regular visitor to the anchor’s live broadcast room told reporters that this wave of stocking up is not only for cheap, but also for Afraid of rising prices. Consumer Xiao Yuan said, “When I was watching the news, I noticed that the prices of bulk goods were also rising, especially some raw materials. When I bought something during Double Eleven, I was afraid that the prices of related products would rise later. After all, even vegetables are getting more expensive this year. The more expensive it is.”
Domestic factories are facing the impact of “double limits and double controls”, rising logistics prices, and a large number of foreign trade orders returning, while raw materials such as oil, copper, and cotton Prices are at a high level. Some FMCG brands whose costs for packaging auxiliary materials, energy and raw materials have risen have already been unable to hold back any longer and have announced increases in ex-factory prices for some products.
Qiaqia Guazi announced a price increase of 8%-18% for some products on October 22 ;
Haitian Flavor Industry announced that it will increase the prices of its main products by 3% to 7% on October 25;
Coca-Cola, Pepsi-Cola, Nescafé, etc. have also begun to consider or have started to raise prices;
P&G and Unilever, two major health care giants, have also publicly stated that they will raise prices.
Not only that, domestic home appliance companies have become the forerunners in price increases due to restrictions on raw materials such as metals and chemicals, as well as “core shortages” and panel shortages. After TVs took the lead in raising prices, Midea, TCL and other companies have also successively raised the prices of refrigerators and other products since the beginning of the year, with price increases reaching up to 15%.
The scope of price increases has expanded, and cotton products companies have been affected
Since October, the cotton spinning spot market and the futures market have gone through a different process. Completely different situation. In terms of futures, Zheng cotton has been rising all the way, reaching a maximum of 22,960 yuan/ton, a high in the past ten years; while cotton yarn has reached a maximum of 30,510 yuan/ton, a new high since the market was listed; the spot price of floral yarn has followed the futures and has reached more than 2,000 yuan. rise.
It is understood that the current yarn price is still profitable based on the price of cotton raw materials 20 days before the spinning cycle, but based on the current market, it is basically at a loss.
(The downstream of cotton is mainly blended yarn, cotton yarn, etc. processed by textile factories, and then made into different fabrics according to specific demand directions. Children’s clothing, maternal and infant life products on the market Supplies, women’s products, underwear, socks, household products and other products use more cotton.)
As the basis of manufacturing, raw materials Price increases affect the entire industry chain. Although the prices of many fast-moving consumer goods have increased or will increase in price, the sales prices of textile finished products, which are also closely related to life, have also been affected.
Gaoyang County, Baoding City, Hebei Province is one of the major towel production bases in the country. One-third of the towels on the market are produced in Gaoyang. A towel brand owner said that the factory operation was affected by power cuts and production restrictions, and the manufacturing time was extended. “On the one hand, the price of raw materials increased, and on the other hand, there were power cuts. Printing and dyeing manufacturers have increased the price of dyeing fees, and the maximum per The pot will be raised by 15%.”
The impact of the price increase of a single raw material will be limited. But in the past year, not only high cotton prices, but also increases in labor costs and transportation costs have affected manufacturing companies. When costs become higher, wholesale customers who have to pay more for warehousing costs would rather place fewer orders, resulting in fewer orders.
Cotton consumer goods may see price increases
In order to pursue profits, some daily necessities companies have always mixed lower-cost chemical fiber materials into products when advertising “pure cotton”. In contrast, although cotton products, which focus on health and quality, have higher costs and are more directly affected by cotton price increases, their comfortable and safe product features are still the decisive factors when consumers choose. The public should pay attention to distinguishing the difference between cotton and non-cotton when consuming.
The concept of 100% cotton “healthy living” is also gradually breaking through. In recent years, during the “6·18” and Double Eleven periods, cotton maternal and infant and personal care categories have become very popular, expanding from targeting specific customer groups to the general public.The use of cotton products has become a force that cannot be ignored in the market. Healthy and environmentally friendly cotton products are becoming a must-have for many families.
Analysts said that judging from the price trend of cotton, unless major abnormal events occur in the future , otherwise cotton prices are expected to continue to maintain high prices within half a year. This also means that the price of terminal cotton products will eventually be affected, and it is only a matter of time. Judging from this year’s Double Eleven sales, the price of cotton products has remained relatively stable and reasonable recently. For consumers, it can be said that they are in a “window period” to stock up. </p
