East A gum and Tongrentang have increased prices one after another

In the
Dong A gum
14
night announced that the factory price of a glue block increased
19%
,
15
Tongrentang also confirmed to the China Securities News reporter that its retail price of a glue block has been raised
30.14%
, a new round of A gum price increase competition opened again.analysts pointed out that as the industry leader of the East A gum price increase in particular to the market attention, in addition to the cost of donkey skin as raw materials to rise factors, the increase in the price of A gum is more the company has been pursuing the "
value return
" continuation.price increase "Three Kills"January

15
, TongrenTang sources confirmed to the China Securities News reporter,
Tongrentang Technology
's A glue block product terminal retail price has increased from
690
yuan
/500g
to
898
yuan
/500g
, an increase of about
30.14%
.price increases of Dong'a gum, the industry leader, are even more remarkable.
1 14
evening, the company announced that due to the company's sustainable development needs, as well as respect for the industry upstream and downstream benign development law, the company decided from the date of the announcement, the factory price of aglue block
19%
, the retail price to make corresponding adjustments.price increase is also half a year after the East A gum once again raised prices. According to china's
Securities News
reporter rough statistics, from
2006

may
to date, The East Agaglu has increased prices
14
times, especially in
in early
a one-time price increase
60%
, East Agaglu opened a wave of
In
2012, the retail price of Dong'a gum rose from
750
yuan
/500g

to
825


yuan
/50
0g
;
July
raised prices again
25%
, and its retail price broke through the
1000
yuan
/500g
the mark, rising to
1098
yuan
/500g.this time the price increase of East A gum is bound to have an impact on the entire price system of the A gum market. At present, the A gum market presents a "three countries kill" situation, and the scale is still small Tongren Tongren Tontang, The most feared opponent of The East A gum should be fu brand A gum no doubt. As for the same city rival Dong'a gum price increase
19%
fact, Fu brand A gum in an interview with China Securities News, said that the company has not yet received notice of price increases. Asked whether prices would be adjusted for East A gum, the person said the company's pricing of products would not be specific to specific competitors, but would be adjusted based on their own conditions and cost conditions." East A gum, fu brand A gum, Tongren Tang is facing a complex situation of a three-way game, on the one hand, the three form an attack and defense alliance, together to build a price system of A gum, pulling the whole body; "An analyst at
pharmaceutical industry
in an interview with China Securities News.
2011, the retail price of Dong'a gum rose to
750,
yuan
/500g
, while Fuku A gum and Tongren Tang also rose to
500
yuan
/500g
and
570
yuan
/
pounds, respectively. By

2012, the retail price of Dong'a gum had risen to
825,
yuan
/500g
, while FukuO and Tongrentang had also It also rose to
720

/500g
and
690

/500g
. However, in
2013
, while the price of Dong'a gum continued to rise, Fu brand A gum was once reduced to
680
yuan
/500g
, while Tongrentang is standing still, maintained at
690
yuan
/500g
level.Sought to "return to value for the reasons for price increases, Dong A gum said in the announcement, with the medicinal value and tonic health value of A gum is more and more consumers accepted, A gum market demand continues to expand, and as the main raw materials of A gum donkey skin resources continue to shrink, resulting in the company's donkey skin procurement costs continue to rise.In an interview with China Securities News, Zhai Guiyu, deputy station director of Shandong Province's livestock station, said: "The stock of donkeys is accelerating the decline, the current stock of donkeys in Shandong Province is only about
22,000
On the one hand, donkey breeding cycle is relatively long, the benefit is not high, on the other hand, with the development of mechanization, the change of production methods, donkeys are constantly eliminated. " is rare and expensive, with the decline in the stock of donkeys, the price of the raw materials used by A gum donkey skin is also rising high.
2010
, the domestic donkey skin price in
3-4 million
million
/
tons,

47%
and
30%
, respectively, in 2011 and
2012, and the price of donkey skins more than doubled in
2013
even if the price of donkey skins continues to rise, East A gum is every reason to raise prices, but in the eyes of many analysts, this reason does not fully hold water.
2012
, the company's gross sales margin was
73.65 percent
. By
the third
of 2013 , the company's gross sales margin
62.98 percent
., the rising price of A gum is due to the company has been pursuing the "return of value." Qin Yufeng, general manager of the company, has compared A gum with worm grass, Maotai, think that the price of a gum is far inferior to Maotai, worm grass, is a serious underestimation of the value of a gum. In
interview with the
in 2011, he said: "In the Ming Dynasty, A gum at that time per jin tax silver one money six cents." According to the tax practice at that time, circulation tax accounted for
1/20
of sales, in order to calculate that the price of A gum is roughly three or two yuan per catty silver, equivalent to
4000
yuan per catty
-6000
yuan. "According to the company's public strategic objectives, the ultimate embodiment of the return of value is to east A gum into a "drug Maotai", take the high-end luxury route.of national policies has also opened the ceiling for the rise in the price of A gum. In accordance with the relevant regulations,
2010 1231
, A gum block will not be within the scope of government pricing, enterprises can set their own prices, thus also eliminating the East A gum price increase policy obstacles. After the government's pricing mantra was lifted, Dong'a gum announced a
60% increase in the factory price of A gum block products by

60%
. Price increase strategy "dilemma for the East A gum the impact of this price increase, the company announced that the company's product price adjustment, market costs and other inputs will gradually increase, product price adjustment on the company's performance is difficult to predict. Huatai Securities believes that, with the return of the value of aglu, the company continues to focus on key regional high-end consumer groups, customer stickiness significantly increased, sales sensitivity to price increases is gradually declining. After the price increase, the average daily consumption of A gum is only
15
yuan, compared with other brands, the ability of A gum price transfer is the strongest. ShenYinWanGuo Research Report also believes that, with the resumption of shipping and the Spring Festival consumer season, it is expected that this price increase in the channels and terminals will be in place smoothly, the impact on quarterly or full-year sales is small, future sales will remain stable year-on-year. , however, the company's price-increase strategy is also to some extent caught in a "dilemma" situation - intensifying market competition and raw materials tension. many competitors joined in as the company continued to raise prices and the price of A gum rose sharply. In recent years, Tongrentang, Taiji Group, Foci Pharmaceuticals, Kang Enbei and so on have been reprimanded heavy gold into the A gum market, the industry's competition is becoming increasingly white hot. CITIC Securities Research Believes that the current competition in the A gum industry is fiercer than in previous years, such as TongrenTang A gum expansion and price increases, Foci A gum production, Taiji Tian glue production, Dong A gum in the future A gum block continues to raise prices significantly, will face Tongren Tang and other competitors to catch up pressure. Tongrentang, for example,
's
sales exceeded 100 million yuan in
, but accounted for a small proportion of
7504
billion yuan in total revenue. However, with the company's Tangshan base officially put into operation, it is expected that
the production capacity of a rubber block after the

2015 will be increased to about

20 million yuan, or about
640,
tons. addition, as competitors continue to enter, the already tight donkey skin resources become more intense, donkey skin competition is also intensified, donkey skin raw materials prices continue to rise.