Passed the first half of the year in an asthmatic manner. for consumer spending because of the face of “inflation” that has continued to rise make utensils The cost of living has increased
Passed the first half of the year in an asthmatic manner. for consumer spending because of the face of “inflation” that has continued to rise make utensils The cost of living has increased
In the past, many items have increased. especially consumer products (FMCG), such as bags of rice, oil, toilet paper, beverages, soft drinks, electrolyte drinks Except for “beer”
the second half There are still a lot of products that are queuing up for price increases. especially controlled products Currently waiting for the “green light” state only, including instant noodles, cosmetics, other categories of beverages, etc.
However, “inflation”, which hit more than 7%, the highest in more than a decade, remains one of the pressures on commodity prices. Which many manufacturers must keep an eye on because this is a new economic “time bomb”.
Rawit Hanutsaha Chief Executive Officer of Srichan United Medicine Company Limited, owner of Srichan brand gives a view of the inflation situation that is very worrisome because of what the whole world is facing No one has yet experienced it. “Inflation is soaring” unprecedented like this
The cost of inflation is more than 7%, which is what consumers are dealing with. Because many items have already moved the price. But on the producer side, inflation hit 15% and pushed 7% to product prices. until affecting consumer spending at this time
“Srichand” There are many beauty products. Whether it’s a group of colors (makeup), foundation powder, skin care products, lotions, shower gels, fragrances, etc., many items, the company has not yet “raised the price”, but the second half of the year. cannot guarantee that “Freeze the original price” How long do you bear the burden of rising costs?
The company therefore tries to manage costs effectively. Come sit and look at the whole product in detail. Which group sells well – does not sell well In order to provide services to manage “discard” products that are not profitable because having a large number of products, if they cannot be sold, are “Bear the cost” All products have to be released. “Small size” For example, Song Sachet to make it easier to buy and sell more easily in the era of expensive things, buying power at a discount, etc.
As for the finances, it must be strictly controlled and carefully looked at. “creditor” Who is it? What are the financial costs? to find a way to reduce the burden of high debt payments, etc.
“We have to have a detailed surgery to look at everything, including creditors, debtors, which banks have to close (pay debts) before after. Let’s look at the cost one by one. Where it can be reduced, waste has to find a way to save. because now the cost is rising and the trend continues to rise Including inflation that has not yet seen its peak, how will inflation go down in the next 6 months? Interest rates are up. affect the total cost But we haven’t moved the price yet. but will keep the same price for a long time.”
Ketmanee Lertkitcha President of the Thai Cosmetic Manufacturers Association and chairman of the cosmetic industry group The Federation of Thai Industries (FTI) told about the situation of producing beauty products, cosmetics, not different from Srichan, which has faced high cost of energy” since the end of 2021, whether it is glycerin with qualifications in The retention and absorption of moisture into the skin is increased by 50%. Surfacant substance that reduces the surface tension in cosmetics. very high price including the price of palm It is one of the raw materials for soap production, etc.
Overall, the cost has moved at least 30-40%, while the shipping cost has moved about 40%, but operators still have to sell products at the “same price”.
therefore have to keep an eye on If the cost of carrying the ceiling is too much to bear cosmetic operator will gradually increase product prices or may adjust the strategy “Size down” Reduce the quantity so that the original price can be sold. and does not affect the “Profit-Loss”
At the beginning of the year, the situation of production costs affecting entrepreneurs to raise prices “Sponsor” It is one of the brands that have already adjusted the selling price. Other main products also “Keep the same price” hold
Prapaipak Wigel Global Marketing Director (F&B), TCP Business Group, said the company puts a lot of emphasis on cost management. In addition to purchasing raw materials in large quantities Still need to coordinate closely with suppliers. because all parties are under pressure “Expensive ingredients” in the same direction
However, some things are beyond control. must be released according to the market mechanism situation
among expensive products Some categories choose to adjust their marketing and sales strategies. Focusing on small sizes as the spearhead in pulling money from consumers’ pockets, but the beverage group, selling “cartons” of products has been a very hot selling formula since the Covid-19 outbreak, as consumers do not want to buy products in small increments. item Or leave the house to buy often.
“Economic conditions purchasing power slows causing consumers to purchase large quantities to stock up for daily consumption Buying a crate or large quantity when average The price is lower than the retail purchase as well.”
