Recently, China's raw materials have risen very sharply, and the impact on many export companies is actually quite large.
In the second half of the year, Lohas Industrial Co., Ltd. encountered a rise in these raw materials, especially when purchasing foldable rainwater tanks, outdoor shower tents, portable pressure bags, and garden water bags.
Many raw material manufacturers are suppliers that we have been cooperating with for many years, and they all complain that raw materials must rise before they increase their prices.
However, many of our old customers are unwilling to increase the price of orders, and some customers have to reduce the price. For example, the Danish customers of our 20L outdoor bathing bag are going to cut the price. In this case, it will undoubtedly cause our orders to be difficult to win, and we need to constantly run in and communicate with customers.
Of course, if the price can be reduced appropriately, we will not hesitate to reduce the price to the customer, but many orders are already at the bottom line, so we can only ask for your understanding, such as the German customers of garden tree bags. For example, Japanese customers with foldable rain buckets.
2020 is an unusual year, but all employees of Lohas Industrial Co., Ltd. will continue to work hard to achieve unusual gains and progress in this year.