There are many reasons for the price increase, such as increased costs of raw materials, labor, transportation, energy, etc. The price increase path of general consumer goods is that the currency boom affects global commodity prices, which affects domestic bulk raw material prices, such as fuel, metal, chemical and other material prices, and then affects the manufacturing industry, especially the domestic raw material market, and then midstream consumer goods companies are affected. , and ultimately downstream consumers pay the bill.

This is not the first time that the price of daily necessities has increased in China. Soy sauce, vinegar, melon seeds, soy milk, pickled mustard, dried noodles and other daily necessities have all increased in price before. Various factors have caused consumption to be relatively sluggish, and raw material prices have generally increased. Therefore, the performance of most consumer stocks is not good, and this is reflected in the stock price. The early price increases were for overseas consumer goods, such as Coca-Cola. Currently, the price of our raw materials has increased, and the cost of energy, packaging materials, and labor has also increased. Therefore, the price increase of Sanquan Food is not accidental.

Sanquan Food’s revenue in the first three quarters of 2021 showed a downward trend. This is the company’s first net profit decline in six years. One of the main reasons for the decline in profits is the increase in sales expenses. In fact, my country's quick-frozen food industry has developed rapidly in recent years. Consumer demand for quick-frozen products and available products have continued to increase, and a variety of quick-frozen products and instant meals have emerged. product. Consumers have more choices, and some companies need more marketing and promotion to maintain performance growth. Many brands will find popular celebrities as spokespersons to increase sales.

Nowadays, people’s life pace is getting faster and faster, so consumers’ demand for quick-frozen products is likely to increase year by year. Although takeout is fast and convenient, hygiene problems are often exposed. Therefore, increasing consumers' repurchase rate of fast food products is the key to the development of the industry. There are currently many types of products on the market, and sales prices are relatively homogeneous. Price increases in the short term may lower sales. If costs fall back or demand increases, companies may make profits.

In the short term, it will be difficult to increase profits by simply raising prices. Companies need to work hard on taste and marketing.