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    Raise Prices At The End Of The Year &Nbsp; Online Shopping Is Also Difficult To Escape The Fate Of Price Increases.

    2011/1/3 16:34:00 124

    Cosmetics

    At the beginning of the year, high-end cosmetics once again raised the tide of price rise.

    Many large shopping malls in Beijing have received notice of price rise. The international first-line cosmetics, such as Dior, Lancome, Chanel and so on, rose from the new year's day, rising at 5%-10%.


    On the other hand, ordinary daily chemicals have also joined the rising price force. According to the data given by the industry, the retail sales of cosmetics are up by about 15%, and foreign investment such as shampoo and other daily chemical products has increased by 15%~25%

    Local brand

    It's around 5%.


    Insiders pointed out that this is the largest and most widely spread cosmetic industry in many years.

    If consumers want to buy cosmetics, try to catch up before New Year's day.


    Rising raw material prices


    Shanghai Lancome counters staff introduction, the price increase involves a variety of

    product

    The increase will range from 30 yuan to ~100 yuan, of which one water margin lotion gel will rise from the current 450 yuan to 490 yuan, and the other foundation solution will be raised from the current 520 yuan to 620 yuan.


    Biotherm, which belongs to L'OREAL group with Lancome, will also raise the retail price at the same time. However, the price of the brand is only related to men's cosmetics, with an adjustment of thirty or forty yuan.

    In addition, some of the products of L'OREAL facial restoration have been raised by an average of 20 yuan.


    L'OREAL Group official said,

    Cosmetics

    The price is affected by many factors, such as raw material cost, R & D input, manpower and marketing costs, exchange rate fluctuations, taxation, inflation and market environment. With the interaction of these factors, it is a dynamic process, which means that the price of products will be accompanied by changes in these factors.

    For some new formula new products, price adjustment is normal.

    For most products, the price has not been raised, and some products have also lowered the price.


    Ceng Xiwen, vice president of Unilever, said that the cost of daily chemical products was mainly related to the price changes of oil and packaging materials. The former had risen from more than 60 US dollars to US $more than 80, and the paper price has also increased a lot. The trend is also quite normal.

    "Conduction to the downstream generally takes 2~3 months, and because of the problem of brand competition, the old products are generally digested as much as possible. New listing brands or modified packaging and formula listing will increase or lower their prices according to the actual cost according to the actual cost."

    It is understood that caution is not only the so-called "old products" of pnational giants, but also quite a number of local brands are also suffering from the problem of brand competitiveness and dare not raise their prices arbitrarily.


    Many factors push up the price of cosmetics


    For the price increase, the official explanation of some brands is the rising cost of raw materials, as well as the increase in R & D investment and human cost, and the influence of various factors such as exchange rate fluctuations and inflation.


    In this regard, marketing expert Mu Feng believes that the reasons for rising prices of high-end cosmetics are untenable.

    Because the premium space of these products is very large, the increase of cost does not have absolute influence on them.


    Mu Feng said that with the recent rise of high-end liquor prices surging, high-end cosmetics are basically a year's price rise, the amplitude of about 10%, and most of the adoption of "replacement", "product upgrading" and other means to raise prices.

    At present, the prices of fast moving products are rising one after another. Cosmetics always like to pick up prices at the beginning of the year, and this "routine" price increases are expected in the industry.

    {page_break}


    Feng Jianjun, a daily chemical expert, said that although the total manufacturing cost of cosmetics accounted for only about 20% of its price, the cost of cosmetic sales and the marketing cost were also increasing this year, especially in some central and local TV media. Some of them even increased to over 30%.

    As the cost increases, foreign cosmetics will surely need to find a balance in price.

    Overall, the price increase should have little impact on consumers, because consumers who can afford Lancome's high-end brands are often not too sensitive to prices.

    "But in the past, prices were rising by changing packaging or upgrading products, so it was rare to raise prices directly."

    Feng Jianjun said.


    Online shopping takes a ride


    The price of cosmetics in the market is already a foregone conclusion, but now consumers' shopping channels are not limited to shopping malls.

    Miss Ren told the China United Daily News that she was ready to buy cosmetics online: "now that there are so many online businesses, I can pick them at random.

    Moreover, the goods on the Internet are generally cheaper than those in the shopping malls, and there are less venues and labor costs.

    Even if the price on the Internet has gone up, it is cheaper than in the market.

    And I can choose to buy on behalf of the buyer, although it is to increase import and export tariffs, but it should be cost-effective.


    But miss Ren's plan may be lost.

    According to the reporter, many cosmetics imported from many stores also began to rise in price, or at least 10%.

    Merchants said that the overall price rise of online shopping overseas brand cosmetics began in January 4, 2011.


    "The consumption tax in the UK will rise every year, and it will rise again in January 4, 2011, and the rate of increase will exceed 10%, up to 15%."

    Businesses explain why prices rise.

    When it comes to how online sellers respond to the rise in the price of foreign cosmetics, businesses admit: "almost all sellers are beginning to hoard their goods. As for how much they store up depends on their economic strength, the more they will accumulate, the more money they will make."

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