Home > Latest News > Big Brands Set To Jack Up Prices 25% Some Absorb Billions In Cost Blow Outs

Big Brands Set To Jack Up Prices 25% Some Absorb Billions In Cost Blow Outs

Some of Australia’s largest consumer electronics and appliance brands are set to lift prices next month, some by as much as 20-25% a move that could cause a slow down and spark an inflation run claiim analysts.

Ironically several Chinese Companies, have said that they are not facing the same manufacturing and shipping problems that US and European brands are facing, with one observer telling CN that several Chinese Companies are looking to increase market share at the expense of competitors despite Chinese brands such as Oppo cutting retailer support after falls in market share.

Several brands including Samsung, LG Electronics, Sony, Panasonic and the likes of Whirlpool, Electrolux and Europpean brands Bosch are facing rapidly rising costs a move that is concerning retailers who are already facing major shortaghes of products.

Whirlpool JQ280IX Crisp N Grill

The problem is not isolated to consumer electronics and appliance Companies McDonald’s and breakfast cereal maker Kellogg along with severtal major suppliers to Woolworths, Aldi and Coles are facing the same problem.

So are some of the biggest automotive Companies including BMW, Mercedes Audi and Kia.

A big saviour for retailers and suppliers during COVID lockdowns is that to date consumers have been willing to spend more on consumer electronics using funds they have built up during lockdowns and their inability to travel.

During the weekend active sportswear brand Under Armour, reported a record gross profit margin of 50.3 per cent in 2021 but said it would drop this quarter in part because of “higher freight expenses resulting from ongoing Covid-19 supply chain challenges “.

Companies including PepsiCo, McDonald’s and breakfast cereal maker Kellogg all flagged the impact of higher labour, shipping and commodity costs and the pandemic’s disruption to supply chains and the workforce during the latest corporate earnings season.

Whirlpool, whose products include refrigerators, stoves and washing machines, said it offset $1.3bn in raw material inflation by increasing prices in every region including Australia where it did business.

Under Armour, the athletic wear brand, on Friday reported a record gross profit margin of 50.3 per cent in 2021 but said it would drop this quarter in part because of “higher freight expenses resulting from ongoing Covid-19 supply chain challenges “.

Consumer group Unilever said this week it expected the strongest cost inflation in decades to hit profitability for two years.



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