25% price increase of dong'a gum may damage market share

A day after the suspension, the price of Dong'e donkey hide gelatin (000423, SZ) finally offered to raise the price of this killer mace On July 13, the price announcement of dong'a-jiao said that the company decided to increase the ex factory price of donkey hide gelatin by 25% and adjust the retail price accordingly from the date of announcement, based on factors such as the needs of the company and the sustainable development of the price industry of donkey hide gelatin The reporter of "daily economic news" learned from the Beijing direct store of the price of dong'a-jiao that the terminal price will be increased by more than 25% Taking the price of 500g-a-jiao as an example, the price will be between Yuan and yuan As a leading enterprise in the price of Ejiao in China, since 2010, the price of Ejiao in East Asia has been raised at least eight times, with a substantial increase in operating revenue However, the price increase is also a double-edged sword The company's status as a Jianghu tycoon is being chased by a group of "rising stars" Unilateral price increase may lose more customers How to maintain the market position in the fierce competition, especially in the case of constant price increase? After this price increase, is the price of dong'a-jiao ready to take any measures to reduce the loss of customers? The price of dong'a-jiao is subject to the announcement Three and a half years, eight times of price increase, the price of dong'a-jiao was introduced by the staff of Beijing direct store At present, the price of dong'a-jiao has stopped purchasing After the inventory is digested, the products purchased will be adjusted according to the price after the price increase, and the retail price will be further adjusted At present, the price of 500g dong'a gum price block is yuan, and the price will be from yuan to yuan after the price increase It is understood that this price increase is the second time in this year's price increase of dong'a-jiao At the beginning of this year, the prices of the products of dong'a-jiao increased as a whole, with an average increase of 5% The price increase of dong'a-jiao has been expected by the market Several days before the suspension of trading, the relevant person in charge of dong'a-jiao's price has repeatedly said the pressure of cost increase, and the rumor of dong'a-jiao's price increase is rising However, compared with the slight adjustment of 5% at the beginning of the year, the price increase of 25% exceeded the market expectation Guo Fanli, manager of the industry research department of CIC, said that although the price increase was slightly large, the price increase of dong'a gum was more reasonable against the background that the price of donkey hide, the main raw material, nearly doubled According to the rough statistics of the reporter of "daily economic news", since 2010, the price of dong'a-jiao has been raised eight times, of which the maximum price increase is 60% The direct result of the price increase is that the revenue of dong'a-jiao has increased substantially At the beginning of last year, the price of Dong'e donkey hide gelatin was increased by 30%, and the price of its price block was increased by 10% According to the 2012 annual report of Dong'e donkey hide gelatin price, its annual sales increased by 10% to 3 billion 60 million yuan, of which the price of donkey hide gelatin and its series products revenue reached 2 billion 830 million yuan, while the sales of similar products in 2011 was 2 billion 290 million yuan, an increase of 23.4% It is worth mentioning that the price hike is a double-edged sword While the frequent price hike improves the performance, the price of dong'a-jiao also reveals that the growth rate of revenue declines, the net profit stagnates and the inventory increases greatly According to media reports, historical data shows that the 30% increase in the price of dong'a-jiao will increase the revenue by 10%, but at the same time, it will lose 10% of its customers In addition, in the price market of donkey hide gelatin, in addition to Tongrentang and Fujiang group competing for the price market of donkey hide gelatin, Taiji group and foci pharmaceutical have also expressed their intention to enter the price market of donkey hide gelatin The price market of donkey hide gelatin is facing unprecedented competition Guo Fanli believes that with the improvement of consumers' health concept and the support of the state for the traditional Chinese medicine industry, the market prospect of donkey hide gelatin price in the future is very broad, and the huge benefits also attract many pharmaceutical enterprises to enter into the price market of donkey hide gelatin Dong'a Ejiao hopes to consolidate its leading position in the industry with the help of constant price increase When other enterprises have not yet achieved success, the price increase is at the right time This price increase may continue the consistent impact of the price increase strategy on the price of dong'a-jiao, that is, the sales volume will decline in the short term but not in the long term The shortage of donkey hide pushed up the cost for the reason of this round of price increase The price of dong'a gum said that it was mainly due to the sharp rise of the price of donkey hide in the upstream Qin Yufeng, chairman of dong'a Ejiao price, told the China times that the price of donkey hide was still around RMB per kilogram at the beginning of this year Now the price has reached RMB per kilogram, and the price has doubled The rise in donkey skin prices is a sign of tight supply According to the national agricultural statistics, from 1991 to 2008, the number of donkeys in China decreased from 11 million to 7 million It is predicted that by 2030, the number of donkeys in China will be less than 2 million In order to solve the problem of shortage of donkey skin resources, in 2002, the price of dong'a-jiao began to invest in the establishment of donkey base The price of dong'a gum announced last year that 17 breeding bases have been established According to the public information, these breeding bases mainly adopt the cooperation mode of "company + farmer" To improve the storage capacity of donkeys, it is obvious that farmers' enthusiasm for breeding needs to be improved The reporter of "daily economic news" learned from Jiangshan breeding factory in Jiaxiang County, Shandong Province that some farmers ordered donkey breeding from them, and dong'e-jiao purchased many donkeys from the farmers At present, the price of each donkey is about yuan, and the profit of one year's breeding is about yuan Compared with working, the income is not very attractive, and there are not many donkey farmers The shortage of donkey skin is pushing up the cost of enterprises According to the 2012 annual report of dong'a-jiao price, while the operating revenue of its price and its series of products increased by 23.4%, its operating cost also increased from RMB 668 million to RMB 818 million, an increase of 22.5% After the price increase of dong'a-jiao, the price difference between Fujiang and tongrentang-a-jiao and its competitors will be further widened The reporter learned from Tongrentang drugstore that at present, the price of Tongrentang donkey hide gelatin is RMB, which is cheaper than that of Dong'an donkey hide gelatin.