Raw materials soared over 60% of daily chemical OEM companies or will start shuffling

The 35th U.S. Fair, the largest cosmetology show in Asia for three days, ended yesterday. The reporter found at the exhibition that "price increase" seems to have become the "sensitive word" of the current US Fair.

“Actually, changes in prices are not conducive to our competition. Under normal circumstances, we can digest or self-digest, and cannot raise prices before they can raise the price.” Although most daily chemical companies have stated this, the result is that everyone must face The same issue raises the price.

OEM companies may start shuffling. "Let's say that compared to the previous year, our raw materials rose by an average of 60%, and individual materials even doubled," said Ye Zhao, chief technology officer of Guangzhou Cosmetics Manufacturing Co., Ltd., admitting to reporters, "Which The increase in oils and natural plant extracts was the most severe because of natural disasters that caused the plant to fail."

For more than a decade in the OEM industry, Yeh said that the impact of raw material price increases is very large. “In the case of oils and fats, the price of raw materials has gone up by more than 60%, but after we digest ourselves, we only increase prices by about 20%. It is considered that the price rise in the industry has risen the least."

The raw material price hike has already tumbled the day-to-day OEM companies. The reporter learned that when the profits of the past few years were high, the US Fair also deliberately set up OEM exhibition areas for OEM companies, and companies flocked to them. At this year's Fair, the pavilion quietly disappeared. "Originally, the profits of OEM companies are subject to two oppression: upstream raw materials, downstream production companies. Very sensitive to the price." A Beauty Industry Chamber of Commerce members revealed.

"We don't want multinational companies to sell products that are not profitable. We also do what private enterprises feel is difficult to control quality products." Ye said that "the exchange rate also affects us. Many of our raw materials are imported, whether it is the euro or the US dollar." The rise and fall are all related to the total amount that can be purchased."

The increase in the price of human resources is also a heavy burden. In addition to soaring raw materials, the cost of human resources has also become the last straw to overwhelm camels. Ms. Zhang, a local daily chemical brand, disclosed: “After the establishment of the minimum wage, employees’ wages account for more than 20% of the total investment of the company, which is also a burden.”

Even if the wages have already risen, the talents in the daily chemical industry are still hard to find, not only in the production industry, but also in the beauty service industry. “Especially the high-end beauty industry talents we need are very scarce.” Lu Hao, a designer of the Lumei Beauty International Group, admitted in an interview that in order to attract talents, they have already offered generous salaries, higher commissions, and better benefits. In other conditions, “the first-line service talents can be cultivated through training, but most of the senior talents can only be found through in-line 'encroachment'.”