Background Review: Terms for cosmetic business, energy and raw materials prices is the major source of pressure. Because oil is the fuel, it is needed and important raw materials. In international oil prices, and our dependence on foreign oil by almost 50% of instances, the date, the pressure is evident. According to China Customs released July 10 showed the first half of this year, China’s imports of crude oil reached 21.01 million tons, imports elevated by 16.4% over final year, import value was 106.four% greater than the very same period. January 2 this year, crude oil futures costs in New York history, one hundred U.S. dollars a barrel mark for the first time, on July 8 a barrel, OPEC crude oil reached 140 dollars, a year early in July, the international crude oil prices are 70 dollars per barrel about.

Professional company information services, according to statistics provided by domestic listed organizations in eight days of sales given that 2006, gross margins continued to decline, the year before, the very first quarter of last year and this year the average sales gross profit was 24.61%, 24.03 %, 21.58%. According to public data display, at the headquarters of Charoen Lotus Lotus current meeting held in procurement, supplier of cosmetic products typically, to consider raising prices in the second half. Can be noticed, the exhaustion of the price of numerous compression techniques, the costs have grow to be a every day chemical market, a move out of chess.

In fact, P &amp G products in China has been secretly costs. Earlier this year, compared with the present installation of Ariel washing powder 1.two kg dollar rose to 15.1 yuan from 14.6, 400 ml packs Pantene shampoo from 30.07 yuan rose to 31.9 yuan. According to public details display, in the past 18 months, Procter &amp Gamble (China), component of the product cost has been raised by 4% to 8%.

Prices, is not straightforward! ?? P &amp G’s global release date of cost rise signals industry expense pressures

For enterprises in the global inflation backdrop of rising expenses, cost increases is the common trend. P &amp G’s global cost hikes, it really should be mentioned that the Japanese chemical business need to take measures to a sharp rise in raw material expenses as a signal.

In truth, everyday chemical enterprise in China, numerous brands have begun to cost increases. Li Bai in the low-end brand, “Cai Qi” This year has been successively increase of 3 times. July 1, Liby has established for its very best-selling series of washing powder price improve of 10% white the exact same time, Diaopai detergent is also 10% price increases are brewing. Marketing director of Shanghai and yellow white Yuzhong Qin told reporters, “We have raised the price of some products.” Raise costs of their products than oil price increases, control of 10%. As for the expense of labor and other elements that organizations have internalized, but the “pressure on oil costs actually can not digest.” Yuzhong Qin also stressed that the white goods are a direct price improve, not minimize capacity, or to take other “disguised price improve” approach. In addition, the item will not be lowering the standard formula. Jahwa corporate communications head of the Department even though not on the “P &amp G cost rises,” a firm stand, but said “there will be a corresponding action.” In addition, some household goods packaging and quantity are reduced to achieve a disguised price increase.

Though the improve is the most basic and handy strategy, but it did not so easy to implement and basic. P &amp G’s sales staff told a reporter, Pantene’s Hair Care Series Up 30%, consumers do not meet the current sales declined by 20%? 30%. But he also pointed out that P &amp G Other Products not affected.

According to a survey by Sina.com, 91.23% users stated that if P &amp G price rises, prices will tend to choose a lot more reasonable brands. In truth, due to intense industry competition, several local enterprises do not dare to lightly for fear of losing marketplace price increases are holding on the edge of the loss, price increases on nearby enterprises is quite sensitive and cautious.

China Cleaning Merchandise Business Association of dollars Shi Xiang said to washing powder, for example, only 5% profit margin as washing powder, very sensitive to price modifications on the cost. “It is indeed very hard business year in April, a lot of organizations are holding on. P &amp G’s price closer to the grade merchandise of domestic enterprises, but this view, P &amp G has support of it.”