Price hike blamed on anti-dumping measures
12/7/2004 17:50
Guang Dong Galanz Enterprise (Group) Co. has raised their microwave
oven prices nationwide by 30 yuan (US$3.6) in most cases, a surprise in China's
home appliance market where price cuts have been the norm.
Galanz's
president assistant Zhao Weimin confirmed the report yesterday, and blamed the
hike on expected higher costs for manufacturing materials.
Costs have
increased 30 yuan for each microwave oven compared with last year, based on the
rising cost of steel, which is used to make the body of the ovens, he
said.
This has nearly wiped out the thin profit margin for oven products,
he added.
Zhao said that steel prices could rise further as China
intensifies its anti-dumping measures nationwide.
The State Development
Planning Commission will soon publicize a regulation to prohibit industrial
dumping, he noted.
To avert steep price hikes at that time, Galanz
decided at the end of last year to adjust prices before the publication as part
of this year's sales strategy, Zhao said.
According to the new
anti-dumping regulation, a seller will be ruled as dumping if the combined value
of the product and any gift that comes with the purchase exceeds the cost of the
product.
Galanz has been offering other Galanz products as free gifts
with the purchase of a microwave, a practice that will be
discontinued.
Jane Chen / Shanghai Daily news
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