Ma Hong Man: Cost Is Only An Excuse For Collective Price Increases.

Following instant noodles and daily chemical products, Kraft Foods China has recently raised the price of some products.

In this regard, the NDRC responsible person said, the NDRC has interviewed the relevant enterprises to understand the situation, and made it clear that all kinds of enterprises should strengthen their social responsibilities, do not arbitrarily lift their prices, and do not collude with the increase in prices.

The rising cost of raw materials and the rising prices of some foods have become the reasons for the unanimous explanation of manufacturers.

But the question now is whether the cost increase necessarily means the collective price rise of the finished products and whether the increase made by the manufacturers is reasonable.

It is undeniable that the problem of rising costs is what the manufacturers call the problem: the raw materials used in the daily chemical industry are mostly the by-products of petroleum. At present, the international oil price has risen from 50 US dollars last year to the current US $100; and the raw materials such as flour needed for biscuit cake production are also rising. The special powder used for making biscuits in February this year increased by 170 yuan compared to that in October last year.

Moreover, with the end of the "super national treatment" of foreign-funded enterprises at the end of last year, the corresponding taxes increased accordingly.

However, the increase in costs and taxes is not a sufficient condition for the industry to "step up".

After all, in a fully competitive market, those who take the lead in price rise will face price challenges and customer churn from other peers, and more manufacturers will try first.

However, there is often the phenomenon of simultaneous price adjustment between domestic and food markets.

In 2007, there was a "collective price increase" in the domestic instant noodle industry. The final survey found that although the cost was less than 5%, the price rose by 20%-40%.

Also under the banner of rising costs, P & G, Unilever, LiBai,

The root of the problem is that manufacturers rely on the rising cost of "Dongfeng" to make bold adjustments in their prices, which stems from their strong market position.

For example, the above four big petrochemical giants occupy almost 80% of the market share of the domestic market, and the market share of Kangshifu egg rolls is as high as 28.5%.

Despite media estimates, a three family will not spend more than $5 a month on daily expenses after its daily price increases.

But the problem is that most of these chemicals are daily necessities and have rigid consumption.

The collective price increase of this kind of people's livelihood products will undoubtedly have a great psychological impact on people.

The development and Reform Commission can intervene in the market by way of interviews, though it can appease the public. However, as long as the cost ratio is opaque and the phenomenon of giant price alliance persists, the hidden trouble of collective price rise will not be completely eliminated.

It can be seen that in addition to playing the role of "firemen" after the good deeds, the competent departments should start cultivating healthy supply markets as early as possible.