We can see through the announcement that there are mainly 7 single products in this price increase, which are 80 grams of fresh and crispy shredded vegetables (national version, Beijing version), 80 grams of original flavor vegetable slices, 80 grams of fresh and crisp vegetable core, 80 grams of fresh and crispy shredded vegetables in quantity, 80 grams of original flavor vegetable slices in quantity, and 80 grams of fresh and crisp vegetable core in quantity. In terms of price increase, it is around 10 percent.
For Fuling squash price increase, in fact, has not been the first time. In the previous Fuling squash has gone through a number of different degrees of price increases. 2008, because of natural disasters led to a reduction in the production of raw materials, Fuling squash had to increase the price, so it was increased by 23%. In 2009 and 2010, the price was raised by 10% and 8% respectively. Of course, this is far from the end, in the 2016-2017 period, Fuling squash again appeared three different degrees of price increases, ranging from 8%-16%.
Now in November 2018, Fuling Squash raised prices again, which also makes people have more reverie about the squash industry. From the point of view of Fuling squash's gross profit, 55% of the gross profit is indeed also in a high value, the price increase is indeed mind-boggling.
In fact, it is not difficult to understand, the single product has become the biggest problem of Fuling mustard. Although the gross profit is at a high level, but, because of the single product, will inevitably lose many customers. Therefore, shall not increase their net profit by raising prices. Seems to be a helpless move, in fact, there is a big problem. Because the people like squash and recognize the brand of Fuling consumers on those people. Even if the price increase, it will not have a disproportionate impact on their own sales.
Of course, in order to win the favor of more consumers. Fuling squash has made inroads into pickles and sauce products.In 2015, Fuling squash acquired Sichuan Huitong Food Industry Co. However, in the following 2017, the acquisition of a northeastern large sauce business failed, and in March of the same year, it terminated the acquisition of stakes in companies such as Sichuan Hengxing and Sichuan Flavor Thickness. In short, in some acquisitions, due to many reasons repeatedly hit the wall. However, as a domestic veteran enterprise, we also believe that it can survive in the industry.