Price Strategy and Cost Control of China's Fragrant Cream Wholesale Market

In China, with the increasing pursuit of quality of life by consumers, the market demand for fragrance cream, as a product that combines aesthetics and practicality, is growing day by day. As an important distribution center for the production and sales of fragrant ointments, Yiwu City in Zhejiang Province has attracted the attention of many wholesalers and buyers with its mature industrial chain and strong production capacity. Among them, Yiwu Wanchengxiang Crafts Co., Ltd., as a leader in the industry, has a pricing strategy and cost control model that is particularly worth exploring.

1、 Price strategy: flexible and adaptable to meet market demand

In the fiercely competitive perfume wholesale market, Wancheng Xiang Crafts Co., Ltd. has adopted a flexible and variable pricing strategy to adapt to the needs of different customers and market changes. Firstly, the company has developed a differentiated pricing system based on product series and positioning. For example, targeting the high-end market, launching a premium fragrance series with high pricing to reflect product quality and brand value; For the mass market, basic fragrances with high cost-effectiveness are launched to win by quantity and meet the basic needs of consumers.

In addition, the company closely monitors market trends and adjusts pricing strategies in a timely manner to respond to market changes. During holidays or promotional periods, launch limited time discounts, discounts on purchases, and other promotional activities to attract more consumers' attention and purchases. At the same time, by establishing a comprehensive customer feedback mechanism, timely understanding of customers' evaluations of product prices and quality can provide strong basis for adjusting pricing strategies.

2、 Cost control: refined management to achieve cost reduction and efficiency improvement

Cost control is the key for perfume wholesale enterprises to maintain competitiveness in the fierce market competition. Wanchengxiang Crafts Co., Ltd. has achieved a significant reduction in production costs through refined management, making it more competitive in terms of price.

Firstly, in terms of raw material procurement, the company has established a strict supplier screening and evaluation mechanism to ensure the procurement of high-quality, low-cost plant essential oils and anhydrous ethanol and other raw materials. At the same time, establish long-term cooperative relationships with high-quality suppliers, further reduce procurement costs through bulk procurement and stable supply.

Secondly, in the production process, the company continuously optimizes production processes and procedures to improve production efficiency. By introducing advanced production equipment and technology, automation and intelligent production can be achieved, reducing labor and time costs. At the same time, strengthen quality control and supervision in the production process to ensure stable and reliable product quality, and avoid cost increases caused by quality issues.

In addition, the company also focuses on large-scale production, reducing the production cost per unit of product by expanding the production scale. At the same time, strengthen inventory management, reduce inventory backlog and waste, and improve capital turnover.

3、 Case Study: Successful Practice of Wanchengxiang Crafts Co., Ltd

As a leading enterprise in the industry, Wanchengxiang Crafts Co., Ltd. has rich practical experience in price strategy and cost control. The company is guided by market demand and flexibly adjusts its pricing strategy to meet the needs of different customers. Meanwhile, through refined management, significant reductions in production costs have been achieved, enhancing product competitiveness.

For example, a natural plant fragrance launched by the company has been widely praised in the market for its high quality and low price. This product strictly controls the procurement of raw materials to ensure the use of high-quality plant essential oils; Adopting advanced technology and equipment in the production process to improve production efficiency and quality stability; In the sales process, consumers are attracted to purchase through multi-channel promotion and promotional activities.

In addition, the company actively expands its international market and sells its products to multiple countries and regions such as Australia, Japan, and South Korea. By participating in international exhibitions and exchange activities, we aim to enhance our brand awareness and influence, and further expand our sales channels and market space.

4、 Conclusion and Prospect

In summary, the pricing strategy and cost control in China's fragrance wholesale market are key to maintaining competitiveness and achieving sustainable development for enterprises. As a leader in the industry, Wancheng Xiang Crafts Co., Ltd. has achieved cost control and efficiency improvement through flexible and variable pricing strategies and refined management. In the future, with the continuous improvement of consumers' requirements for quality of life and the intensification of market competition, perfume wholesale enterprises need to continue to strengthen product research and development and quality management, optimize price strategies and cost control models, actively expand domestic and foreign markets to cope with market challenges and seize development opportunities.