Unilever, Ting Hsin delay hike
By Joy Wang |
April 1, 2011, Friday
|
Print Edition
Print Edition
Unilever and the Ting Hsin International Group yesterday decided to postpone raising the price of their products, after a wave of "panic buying" prompted China's pricing regulator to look into the case.
Unilever, a major personal care product maker, said it won't increase the prices of its shampoo, soap or washing powder today as planned. Ting Hsin, meanwhile, said the prices of its Master Kong instant noodles will remain the same.
Both companies did not clarify whether or when they will reconsider a price lift.
"We feel sorry that our decision to adjust prices caused some consumers to rush to buy our products," Unilever said in a statement yesterday.
Procter & Gamble, Liby and the Nice Group, the other three manufacturers involved in a concerted price-rise move, didn't comment yesterday on whether they will carry out their original plans today.
Last week, the four companies revealed plans to mark up prices of their products by up to 15 percent from April because of the "rising costs of raw materials." They together command four-fifths of China's consumer products market.
Some days earlier, Ting Hsin announced it would add 0.50 yuan (US$0.08) to its instant noodle price, or a 14 percent hike.
The news sparked a buying spree, with supermarket shelves almost emptied of shampoo, soap and washing powder.
Reacting to the consumer frenzy, the National Development and Reform Commission said it would launch an investigation into whether these companies were fixing prices. Under anti-monopoly regulations, firms that gang up to distort prices face stiff punishment.
China Price Law also prohibits companies from fabricating news of a potential price rise to test the market.
The commission yesterday said there was insufficient evidence so far to show the companies colluded in this case.
Unilever, a major personal care product maker, said it won't increase the prices of its shampoo, soap or washing powder today as planned. Ting Hsin, meanwhile, said the prices of its Master Kong instant noodles will remain the same.
Both companies did not clarify whether or when they will reconsider a price lift.
"We feel sorry that our decision to adjust prices caused some consumers to rush to buy our products," Unilever said in a statement yesterday.
Procter & Gamble, Liby and the Nice Group, the other three manufacturers involved in a concerted price-rise move, didn't comment yesterday on whether they will carry out their original plans today.
Last week, the four companies revealed plans to mark up prices of their products by up to 15 percent from April because of the "rising costs of raw materials." They together command four-fifths of China's consumer products market.
Some days earlier, Ting Hsin announced it would add 0.50 yuan (US$0.08) to its instant noodle price, or a 14 percent hike.
The news sparked a buying spree, with supermarket shelves almost emptied of shampoo, soap and washing powder.
Reacting to the consumer frenzy, the National Development and Reform Commission said it would launch an investigation into whether these companies were fixing prices. Under anti-monopoly regulations, firms that gang up to distort prices face stiff punishment.
China Price Law also prohibits companies from fabricating news of a potential price rise to test the market.
The commission yesterday said there was insufficient evidence so far to show the companies colluded in this case.
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