CPI index hit a one-half year high security products prices?

The state announced that the latest increase in CPI index reached a new high of one and a half years. On May 11, 2010, the National Bureau of Statistics released the latest economic index in April, of which the most concerned are the CPI (Consumer Price Index) and PPI (Producer Price Index). The index rose by 2.8% and 6.8% year-on-year, and the increase reached a new high for one and a half years. In terms of industry, in April, security-related communications equipment, computers and other electronic equipment manufacturing industry grew by 18.2%.

Although the industry’s growth has been remarkable, the increase in raw material prices cannot be ignored. Therefore, we should also note that in April, the purchasing prices of raw materials, fuel, and power rose by 12.0% year-on-year (by 9.6% in the same month of last year), and the increase was 0.5% higher than the previous month; January-February, raw materials, fuel, Power purchase prices rose by 10.4% year-on-year (down 7.7% in the same period of last year), an increase of 0.5% from the first quarter. In April, purchase prices of non-ferrous metal materials rose by 29.1%, fuel power rose by 24.0%, chemical materials rose by 7.4%, and ferrous metal materials rose by 8.3%.

Discuss whether security products will follow the trend of increasing prices into April. Whether it is residents’ basket products in peacetime or industrial products in other industries, there are obvious price increases. So, as a security product that is also dependent on raw materials, will it follow suit? To this end, the author visited a number of well-known manufacturers. There are two access control manufacturers that have not yet been affected by the rise in raw material prices, and they are mainly to do engineering projects, but there is no follow-up prices. As for the products, they will have corresponding promotional activities later and actively respond to market competition.

However, some manufacturers have stated that the increase in the price of raw materials does have an impact on costs, but there will be no change in the final product prices. In order to offset the impact of rising costs, they have maintained product price advantages by optimizing staffing and eliminating some of the original promotion plans.

At the same time, insiders of some big brands also revealed that the fierce competition in the security industry has only increased. Easily rising prices can easily lead to the loss of customers, so they will not easily raise prices. And, as far as they know, the cottage brands in the industry are indeed affected by the increase in the price of the final product caused by the increase in raw material prices.

The security industry bathed in the sun progressed in April before the twists and turns, the security companies entered the overwhelming annual new product promotion period, large and small manufacturers are busy with the national road show, tour exhibition, wave after wave of propaganda Offensive is dizzying. Through the downturn of the market in 2009, everyone has expressed greater confidence in the new year's accumulation of savings. Everyone is looking forward to being able to fight a "turnaround", new products and new technologies are coming out, and the market is tending to " Warmer", a lively scene.

On the other hand, we should also see that the rise in raw material prices is an iron-clad fact. As a security industry that also depends on raw materials, rising costs will inevitably create difficulties for business operations. However, at the same time, the rise in raw material prices will first allow those unlicensed businesses to operate. There is no room for regulation, and the brand can't withstand the pressure of failure. The market environment can be purified, which is conducive to the healthy development of the security industry.

Although important projects in some countries have been completed in 2010, we know from the process of communication with manufacturers that in the next two to three years, the demand for the security market will still show a considerable scale, including the Shanghai Hongqiao Hub Plan, the national high-speed rail Development plans, financial industry networking renovation plans, and so on, safety construction is causing more awareness and extensive attention and attention.

The security industry bathed in sunlight is doomed to go forward in twists and turns.