The Increase In Cost Is The Main Cause Of &Nbsp; The Running Of Sports Shoes Brand Is Running High.

August 27th hearing " Lining When Price increase "This is the title of the discussion Post recently seen on some domestic websites. This conjecture may have long been a reality. According to XTEP, Anta The semi annual report released recently shows that the wholesale price of footwear and clothing has been raised in the first half of the year, and Lining claims that it will gradually raise prices to narrow the price gap with the international first-line brands. Sports brand coincide shouting rise in price, which seems to be a sharp weapon for these enterprises to increase profits.

Rising prices drive company performance

XTEP announced its semi annual report, which showed that the average selling price of footwear products increased by 6.6%, and the average selling price of clothing products increased by 13.9%. After the price increase, the average selling price of XTEP footwear products was 85.7 yuan, the average selling price of clothing products was 52.5 yuan, and the sales volume of footwear products and clothing products increased to 9 million 500 thousand pairs and 20 million pieces respectively, which was double affected by the increase of sales volume and the increase of price. The first half of the year in XTEP increased by 22% to 2 billion yuan, the gross profit margin increased 2.1 percentage points to 40.7%, and the profit margin increased by 2.4 percentage points to 22.2%. Anta reported that the average selling price (wholesale price) of footwear products increased by 2% to 96.9 yuan in the first half of this year, and the price of clothing products increased by 7.1% to RMB 49.6 yuan. Li Ning Co also announced in June this year that the average retail price of footwear products increased by 7.8% in the fourth quarter of this year, and the retail price of clothing products increased by 17.9%. An industry insider told reporters that in the first half of the year, the performance of sportswear enterprises has been promoted and the price increases have been made.

　　 cost Rise is the main cause.

The explanation for the collective price increases of local sports brands is also the same. According to the semi annual report of XTEP and Anta, the increase in labor and raw material costs in the first half of this year is the main reason for raising prices. According to XTEP semi annual report, staff costs increased from 81 million 318 thousand yuan in the same period last year to 95 million 345 thousand yuan, an increase of 17.2% over the same period last year. The cost of raw material sales was 537 million yuan, an increase of 18.7% over the same period last year. A foreign sports brand insider told reporters, "fabric prices rose larger, especially some imported fabric prices have increased by more than 30%, factory workers wages have just risen, otherwise skilled workers are difficult to recruit."

In addition, there has been a small increase in expenditure on publicity and promotion. Taking Anta as an example, the proportion of advertising and publicity expenses in the first half of this year accounted for 12% of business revenue, an increase of 0.8% compared with the same period last year. But not all sporting goods companies raise their prices because of increased costs. Earlier, Li Ning Co stakeholders said that the price increase was mainly aimed at enhancing brand positioning and narrowing the distance between multinational sports brands.