A dilemma in the Year of Rooster

In the coming Year of Rooster, the key words may come out in Chinese People of hardworking like Chicken dance; peace&calm, poetic life in countryside like the famous poet Mr. Haoran Meng in Tan Dynasty " Old friend preparing me chicken and rice and entertain me at his farm"; or good luck of homophonic in Chinese" JiXiangRuYi", etc.

As the OPEC and Russia concluded the agreement to reduce the production of petroleum, the price of petroleum is keeping increasing in recent month. This may make the shale oil producer in USA happy but it is indeed not a good news for hygiene products manufacturers because of the raw material cost increasing significantly.

It is a tough choice for the manufacturers to increase the selling price to their customers or not increase. If increasing the selling price, they may face the risk to lose their customers since the final consumers are really hard to accept the higher price of hygiene products such as disposable baby diaper, wet wipe, paper napkins, etc and they may choose new brand/wholesale for better price. While if not increasing the selling price, they manufacturers may be unable to bear the cost on their own since the raw material cost increased dramatically. It is a dilemma.

As the participants in the market, the manufacturers and customers should understand and support each other to create a better future. It is no reasonable and fair to let only the manufacturers or only customers to bear the burden of raw material cost increasing. We should meet each other in the half way, to decrease the profit of each other to meet the satisfied of final consumers and finally to expanded the market to gain the profit to get through the difficult.

All my colleagues in Hongfan Corporation wish you have good luck to achieve great success in career, family and life. We will always be there to work with you together.