Apr. 29, 2021 - On April 23, Hansgrohe China issued a price adjustment notice to its partners, announcing that price adjustments will be made from July 1, 2021: Hansgrohe will increase by an average of 5%, and AXOR will increase by an average of 5%. Some products will undergo structural price adjustments.
Hansgrohe said that the prices of raw materials have risen sharply in recent months, far exceeding expectations. At present, Hansgrohe has adopted an active purchasing policy and increased inventory at the same time to offset part of the cost increase.
However, because the trend of high prices is difficult to change, price adjustments must be made based on current costs. The notice was signed by Ren Quansheng, President of Hansgrohe China, and Thomas Stopper, Vice President of sales of Hansgrohe Asia Pacific, the price increase is obviously a group strategy.
According to Hansgrohe's previous 2020 annual report, the company achieved sales of 1.074 billion euros (approximately 8.410 billion yuan) last year, a year - on - year decrease of 1.4%. Realized operating profit of 197 million euros (approximately 1.543 billion yuan), a year-on-year increase of 9%.
Among them, Hansgrohe's sales in the Chinese market increased by 7% last year, which was basically the same. In 2019, the German market increased by 12%, but sales in the United States, the United Kingdom, and Spain declined.