East E-Jiao welcomes a new round of price increase

Following the price increase in January, East E-Jiao has once again ushered in a new wave of price increases. This time, the ex-factory price has risen by 25%. Last month, Dong-E E-Jiao issued a public announcement that Ejiao's ex-factory price was raised by 25% and the retail price was adjusted accordingly. At present, the retail market has not responded in a timely manner. Businessmen basically follow the original price of “licensing”. According to the data obtained by the reporters visiting the market, 250g Dong’e Ejiao’s price is 445 yuan. Then, a pound of donkey-hide gelatin will be nearly 900 yuan, and 53 degrees of flying Maotai. This year's sales price is also about 900 yuan. In other words, after the terminal retail price increase, Ejiao prices are even higher than Maotai. It is really "Maotai" price ejiao. The National Day gift season is coming soon. As a gift for donkey-hide gelatin, will you buy this year?

Dong-E E-Jiao issued an announcement that based on factors such as the company's sustainable development needs and the E-Jiao industry, the company decided that since the date of the announcement, Ejiao's ex-factory price will be adjusted upwards by 25% and the retail price will be adjusted accordingly. At the beginning of the year, some media reported that the Dong'e Ejiao's Ejiao block raised its ex-factory price and terminal price by 6%-7% from January 5.

According to the China Merchants Securities report, the ex-factory price of Dong-E E-Jiao has been raised 13 times in the past 7 years. Among them, the price increase in 2010 was 4 times, the cumulative increase of 45%; in 2011 a one-time price increase of 40%; 2012 price increase 3 times, the cumulative price increase of 50%.

Recently, the reporter visited several large pharmacies in Haizhu District to observe the price change of Ejiao. Some pharmacies have already received notifications of manufacturers' price increases, but the store has not yet been marked. The tide of price increases does not stop there, and it is expected that the forthcoming national holiday gift season will also push up the retail price of ejiao.

Reporter in Taobao, a "Beijing X Sheng Tang pharmacy" to see East Ejiao 500g promotional price of 599 yuan, the treasurer said that it has received price increases, but has not notified the specific price increases and price increases. Another owner of the Shandong online store called “Xi’s Civilian Pharmacy Flagship Store” also said that 500g of donkey-hide gelatin in the store will rise from 599 yuan to 825 yuan, and it will rise to more than 1,000 yuan in a few days. “Will the price be raised during the Mid-Autumn Festival?” “It is estimated that it will not be possible at that time. Our purchase price has been increasing. It is estimated that it will be very soon.” As for the Fu card dispenser, it did not receive the price increase message.

In the “Power × Medicare designated pharmacy”, the reporter saw Ejiao with seven or eight brands in the container. The store’s shopping guide told the reporter, “Ejiao has always been a thing that doesn’t go up. It’s almost up to the Mid-Autumn National Day. People buy a lot of gifts, and now people’s sense of boosting is getting better and stronger. They all know that donkey hide is good. Things, are willing to buy, buy more people, plastic and scarce, the price will naturally rise. Besides, now that prices are so expensive, Ejiao prices will rise."

Mr. Hu has been engaged in the nourishing industry for more than ten years and began selling edarines at various stores in the beginning of this year. When he came forward with goods in two or three months, he received the wind saying "prices will soon rise." From the merchant's point of view, he believes that Dong'e E-Jiao has absolutely the conditions to raise the price. "Ejiao in supplements is not expensive, and there is room for growth."

Mr. Hu said that in the Ejiao market, Dong E Ejiao is a giant. In the past, it accounted for most of the market share, and its market bargaining power was very strong.

Mr. Hu always has reservations about the “demand for a strong market” for Ejiao. He vowed to have an inside story: The price of donkey-hide gelatin does not rule out the speculation of hot money. In the tonic industry, Ejiao may have to follow the lead of the American Ginseng and become the second "fried work" this year. According to his observations, the present situation of donkey-hide gelatin is similar to that of the American Ginseng at the beginning of the year. "Two years of hot money still exist. When commodity prices rise sharply in a short period of time, you can consider whether hot money is working."

Every autumn and winter is the "spring" of nourishing products. At this time, the purchase of goods is bound to have a high cost. Mr. Hu said that initially, the merchants chose to purchase large quantities in the off-season only to avoid high costs, and they would accumulate in the fall to make more profits in the autumn peak season. When the peak season arrives, the demand increases. One or two large households holding large stocks reach a consensus and raise prices to earn more profits. Small households make money with the wind and raise market prices, giving people the illusion that “supply exceeds demand”. Therefore, when the time is ripe, hot money will be tricked down.

The rise in raw materials is the main reason given by Dong-E Ejiao. According to the research report of China Merchants Securities Co., Ltd., since the last May, the donkey skin has been growing at an alarming rate. Wet skin has risen from 8.5 yuan to 22 yuan per catty, a rise of 158.82%. Mr. Huang, who is engaged in the donkey breeding industry, told reporters that donkey skins accounted for 30% of the donkey’s economic value for 3 years, and donated pure donkey skins to raise donkeys. The resulting benefits were low. At present, the amount of donkeys is decreasing. According to statistics from the Ministry of Agriculture, at present, the donation amount of donkeys in the country is around 6 million heads. The annual slaughter volume is calculated at 1/3, which should be around 2 million heads. The amount of stocks is declining by about 2.6% each year.

In addition, the increase in competitors and changes in supply and demand are also reasons to increase the ex-factory price. Prior to this, listed companies such as Tong Ren Tang, Tai Chi Group, Foci Pharmaceuticals, and Conba made high-profile entry into the E-Jiao market and invested heavily in building their own E-Jiao industrial chain. In addition to the East Ejiao and Blessing Glue which has been cultivated for many years in the Ejiao market, the Ejiao industry is getting hot. Supply and demand is another reason for the increase in prices of gelatine. Dong'e et al. expressed that “the reason for the adjustment of prices is also due to the strong market demand, which is the result of both the market demand and supply factors.”

"Ejiao is worth the price." Guangdong Provincial Chinese Medicine Hospital Pharmacist Zhai Ziqiang has been dealing with various Chinese herbal medicines for decades. He is familiar with the medicinal properties of various medicinal herbs. He is not surprised at this time Dong Dong Ejiao's price increase, and he even thinks that this should be the case. In his prescription, Ejiao is a regular customer.

"Ejiao's raw materials are donkey skins, but not all donkey hides can be used as donkey-hide gelatins." The pharmacist quoted the commentary on Ejiao in the "Compendium of Materia Medica." "Ejiao, out of the East, named Ejiao." He further explained that the skin of a donkey made from Dong's well water can be called donkey hide. In other words, from a strict sense, the donkey skin produced in other places can only be called donkey glue or donkey hide glue. He made an analogy. Hangzhou Yu Qingtang also has a donkey skin, but they don't call it "ejiao", but they are called donkey glue. .

In the eyes of Pharmacists, Ejiao has special characteristics in terms of efficacy and production factors, which is one of the “iron” reasons for its price increase. Moreover, aspects such as labor, raw materials, rent, and transportation have directly pushed up the cost of donkey-hide gelatin production and can only be passed on to consumers.

In recent years, impetuous speculation has engulfed Cordyceps, Pu'er Tea, and American ginseng, even pork, garlic, mung beans, ginger, etc., and speculators have seen the four directions, played around prices, and perverted the market. In particular, Cordyceps, which is a luxury product, and high-grade Puer tea, etc., fake goods are rampant, prices have been ups and downs, and the industry has been greatly affected. Consumers' interests are difficult to be protected.

Does Ejiao's current price have a hype component? Senior practitioners say "yes." Inspecting the current market pattern of donkey-hide gelatin has indeed become a clue:

Many listed companies have entered the E-Jiao market and invested heavily in building the industry chain. This will often bring along supporting activities for hoarding and price increase; Ejiao will continue to raise prices in a quiet manner, which will easily lead to follow-up of hot money; on the other hand, the market is more hot money and " Thirsty, and the tonic market has formed a certain amount of hype experience and scale.

In fact, the prevalence of speculation will make the market unhealthy, and it will also cause consumers to go further and further away. This will lead to a situation where the two heads are on the ground. Why bother?