CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

Stores' waiting game on prices

04-10-2012 08:32 BJT

Supermarkets in Shanghai are absorbing some recent wholesale price increases rather than passing them on to customers in an attempt to gain advantage over rivals. But higher prices will inevitably reach the shelves, according to industry officials.

Lotus, Carrefour, Tesco, Lianhua and other major retailers said Procter & Gamble raised prices for some of its shampoo and shower gel brands by 5 to 20 percent from April 1. The supermarkets are waiting to see who moves first in raising shelf prices, supermarket representatives said yesterday.

"We are watching market reaction closely, and there could be shelf-price increases in the future," said Xiang Jun, a media official for Lotus in Shanghai.

Price increases of between 10 and 20 percent for Head & Shoulders and Vidal Sassoon brands of shampoo have already appeared in several large supermarkets in Shanghai.

"All the news is about price hikes now," a shopper surnamed Yuan complained. "First, there was gasoline, and now it's personal care products. Companies couldn't be that short of money, and the problem is that consumers don't have a say in this."

A Haitong Securities report attributed the most recent round of product price rises to the rising cost of fuel, labor and raw materials. The increases are likely to snowball through product categories.

P&G was not available for comment yesterday. Unilever, another personal care giant, said the company had no plans to raise its wholesale prices.

Last year, Unilever was fined 2 million yuan (US$317,058) by China's top price regulator, the National Development and Reform Commission, for "fueling expectations for price hikes and disturbing market order."

The company's talk about possible higher prices was blamed for spurring panic buying of items such as laundry detergent.

Prices for cooking oil, milk powder and other commonly used household foodstuffs also increased recently.

In March, major cooking oil producers Arawana and Fulinmen said that they were raising wholesale prices for rapeseed oil and peanut oil by as much as 10 percent.

Carrefour said it hadn't passed on those increases yet.

Milk powder producers, including Nestle and Mead Johnson, also announced price rises of up to 10 percent early this month.

Editor:Zhang Pengfei |Source: Shanghai Daily

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program