Due to the sharp rise in oil prices, plastic prices have also soared, so we need to raise the price of our children’s scooters as well.

Recently, the international oil market has undergone a dramatic shift, with prices soaring unabated. This development has sent ripples through numerous industries like a massive boulder dropped into a tranquil lake, with the plastics sector—so closely tied to our daily lives—bearing the brunt. Consequently, the children’s scooter manufacturing and sales industry, as a downstream segment of the plastics value chain, has also been unavoidably hit hard, making price increases an unfortunate but inevitable choice.

As the “lifeblood” of modern industry, oil prices are highly sensitive to even the slightest fluctuations, with any change reverberating throughout the entire economy. From a macro perspective, a confluence of factors—including heightened global geopolitical tensions, production adjustments by major oil-producing countries, and rising demand driven by economic recovery—has collectively propelled oil prices to climb steadily. This upward trend is far from a brief, minor swing; rather, it has taken on a robust and sustained character, sending shockwaves through the entire energy market.

The plastics industry is closely tied to the oil sector, as petroleum serves as the primary raw material for plastic production. When oil prices surge, the cost of producing plastics inevitably rises in tandem. Take common plastic feedstocks such as polyethylene and polypropylene: their prices have already posted staggering increases over the recent period. Manufacturers are now under immense cost pressure, with previously stable profit margins rapidly eroding. To keep operations running smoothly, they are forced to raise ex-factory prices for plastics, passing the increased costs downstream.

Our children’s scooters may appear simple, but plastic components make up a substantial portion of their construction. From the frame and handlebars to the wheels and other critical parts, plastic is indispensable. Before oil prices surged, raw-material costs for plastics remained relatively stable, allowing us to procure the necessary materials at reasonable prices and maintain competitive pricing for our scooters in the market. However, with the recent sharp rise in plastic prices, our production costs have increased dramatically. Take an average children’s scooter as an example: previously, plastic components accounted for about 30% of the total cost; now that share has climbed to nearly 50%. This means that for every scooter we produce, we are facing a significant additional expense.

In addition to rising plastic raw-material costs, other related expenses are also increasing quietly. The rise in oil prices has driven up transportation costs—whether it’s the movement of raw materials or the delivery of finished scooters, both require substantial amounts of fuel. Higher fuel prices have led to a significant increase in logistics costs, further squeezing our profit margins. At the same time, rising energy prices are also affecting other aspects of the production process, such as electricity costs. Although these cost increases may seem minor on an individual basis, when scaled up across large-volume production, they accumulate into a force that cannot be ignored and exert a substantial impact on our overall costs.

Faced with such severe cost pressures, we fully recognize that raising prices is a difficult decision—but it is also a necessary measure to ensure the company’s sustained, healthy development. Without a price increase, we would incur substantial losses; over the long term, the company would struggle to maintain normal production and operations. Ultimately, the damage would extend beyond the company itself to广大 consumers. After all, if a company is unable to absorb these cost pressures and is forced to shut down, consumers will lose a reliable source of product supply, and the range of children’s scooters available on the market will shrink accordingly.

We pledge that, while raising prices, we will do our utmost to maintain product quality and service standards. We will continue to invest in R&D, refine our manufacturing processes, and enhance production efficiency to reduce certain costs. At the same time, we will strengthen collaboration with our suppliers to secure more favorable pricing and more reliable supply of raw materials. Through these efforts, we aim to keep price increases within a reasonable range and minimize the impact on consumers.

We understand that consumers may have concerns and dissatisfaction about the price increase, but we hope you can appreciate that this is an unavoidable outcome of changing market conditions. We believe that, with your understanding and support, we can navigate this challenging period together. Looking ahead, as market conditions improve and cost pressures ease, we will promptly adjust our prices to offer consumers even higher-quality, more affordable children’s scooters.

The sharp surge in oil prices has triggered a corresponding spike in plastic prices, presenting unprecedented challenges for our children’s scooter manufacturing. While these price increases are unavoidable, they are essential to ensuring that our company can continue to deliver high-quality products and services. We look forward to working hand-in-hand with consumers to navigate market changes together and build a brighter future.

Add: NO.4 Haiyu one road FuYu Industrial Zone Leliu Town Shunde District, Foshan City, Guangdong Province.
Tel: +86-0757-26368660 / +8613413291786
E-mail: sales.01@xiaorenlei.com