Lining, Anta, PEAK Takes The Strategy Of Raising Price To Pass On Rising Cost.

Yes, a lot. Consumer In terms of clothing prices this year seems to be particularly expensive, in other words, this year's increase makes consumers feel, "this year's increase is indeed a little big, but there is no way, pressure caused, and the whole market is like this." Mr. Ma, a sales manager of a brand clothing enterprise in our city, introduces that this year's clothing sales have become a hard truth. According to observation, Shishi many brand clothing enterprise terminal sales outlets product prices have varying degrees of rise.

A few days ago, including Lining A number of brands, including Anta and PEAK, released their interim results. The report shows that in order to cope with the pressure of rising production costs, these enterprises generally adopt the strategy of raising prices to transfer the rising cost to distributors or consumers. For the smallest PEAK, the average unit price of clothing products increased by 2.1%, from 42.5 yuan in the first half of 2009 to 43.4 yuan in the same period this year, and the price of Anta clothing products increased by 7.1% to 49.6 yuan. As for XTEP, the increase rate was even larger, and the average selling price rose 13.9% to 52.5 yuan. "The price of the goods we buy now for dealers is 18% higher than that of the same period last year." Mr Ma said that according to its understanding, Shishi some brand clothing's autumn winter product price increase is in 15% - 25% or so, "does not raise the price actually has no way. Only by increasing prices can we have more profits to open flagship stores and expand terminal sales outlets. Mr Ma said that the cost of personnel and raw materials of his company increased by 30% and 25% respectively over the same period last year. In the earnings report of Jinjiang brand enterprises, Mr Ma's argument was confirmed. Such expenses as "salary, wages and other benefits" of PEAK group rose from 675 million yuan in 2009 to 1 billion 17 million yuan this year. Anta's staff cost rose from 237 million yuan to 305 million yuan, and XTEP's staff cost increased from 810 million yuan in 2009 to 950 million yuan this year.

In addition to staff costs, this year led to Clothing sales Another factor of "non general inflation" is that cotton prices are always high, so that prices of raw materials such as cotton yarn and cotton cloth, which are most closely related to garments, are rising. According to China's cotton price index, the price of standard cotton has risen from the average price of 12831 yuan / ton in 2009 to 18165 yuan / ton in July this year. As of June 30th this year, the domestic 328 cotton spot index was 18309 yuan / ton, up 42.6% over the same period last year, and the price of raw materials such as cotton, chemical fiber and so on also rose.

"Only the price rises can break through," Mr. Fang said. Today's clothing market has become the trend of many brands. If we want to stand out, we must have enough profits. It is the best choice to transfer the burden to consumers when the cost of production is rising and they can not digest themselves. This is why Lining's sales are much higher than that of XTEP, but the net profit of the latter is nearly 140 million yuan more than that of the former.