How do you see the market in September–October after the covid era?
The market is good, but there are procurement issues. With high price, there are quality issues. The demand is there, although has risen considerably good, but it has not come back completely. There may be pent-up or purchase demand, but demand is definitely there.
What impact of price rise do you see on dealers’ sales?
The rise in products prices are very difficultly being forwarded to customers. So, there is a deep impact on margins. If the cost increases by 10%, the product price does not increase in that manner and ultimately pressure is built on margins. The running items see resistance in price rise as the contractors, carpenters, architects, and interior designers ask for the previous price. Secondly, all do not increase the price at a time that also creates chaos in the market. If the person that you are aligned with, has increased and the other does not, then there is a difficulty.
What is the payment scenario?
In terms of payment scenario, the older one is difficult to recover now. The new material is coming according to the demand. Projects are also suffering from fund crunch and there is adjustment issue everywhere going on.
In this way, at what ratio the project cost has increased for interior work?
This is to be studied in different aspects, such as some people or professionals have downgraded their product quality and enjoyed the cost at a similar level, while those who are in high grade have not changed their price in a positive direction. I think the price increase does not have much impact on the project cost of the service offering for interior works. Those who have to have good work are not holding due to price rise.
What is the scenario in Decorative Veneer sale?
Earlier people were having orders of material according to their requirement without any delay. But, now the situation is different. Process begins after the order is received and its availability is made with time then only the supply is possible to the clients. The operational activities have reversed. Today if you wish to have quality material, you need to have five people in contact and ask for material then you can fulfill your requirement but earlier only one person was sufficient to offer them.
What is your message to the market stakeholders and customers?
I would like to say move with caution and be safe because material procurement is getting tough day by day. The companies who were working on credit earlier are also asking for cash in advance now.