Footwear Exhibition Tells Footwear Companies: The Foundation Is The Key.

Recently, a number of brand enterprises including Lining, Anta and PEAK have released 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 pfer 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 price increase was even larger, and the average selling price rose 13.9% to 52.5 yuan.

The explanation for the collective price increases of local sports shoe 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.

So, face

It is fair to say that the market price of shoe products must be "up and up", but the pain of raw material price increases makes it impossible for consumers to bear. At present, the embarrassment of "no price increases and death" is already a reality. Shoes competition is more brutal and realistic. However, shoe enterprises can neither kill one thousand or eight hundred self harm fist, nor can they react negatively to "constant change".

"As users, we have no choice in raising the price of raw materials. There are only three ways to go. First, we should strengthen internal management and improve production efficiency; two, we should adjust the product mix and increase the added value of products with the guidance of science and technology; three, we should optimize the market channels, expand domestic and foreign markets, and enhance the autonomy of the market."

Yu Jinhua, chairman of Wenzhou Jill Da shoes company, believes that, in the face of rising prices of raw materials, shoe enterprises can not passively seek low-cost procurement, only to enhance the core competitiveness of enterprises, because internal factors are the internal basis for the change and development of things, and the source and driving force of the movement of things, which stipulates the basic trend of the movement and development of things.

The author believes that we should strengthen internal management and form a series of methods, measures and procedures for tapping potentials and increasing efficiency, and standardize and systematize them so as to make them become a rigorous and complete system, which not only improves work efficiency, but also digests some of the disadvantages brought about by the increase in prices of raw materials.

For example, paperless office can improve office efficiency, reduce consumption of materials, improve the level of refined production, optimize production processes, and cut and produce with advanced equipment, which can not only save materials, but also enhance profitability and risk tolerance.

In fact, with the global economic recovery, raw material price recovery is inevitable. However, most shoe enterprises lack the ability to judge the price trend of raw materials, so it is difficult to grasp the stock cycle of raw materials and the inventory level of products. Therefore, shoe enterprises must work hard in the construction of market channels, solve the problem of "selling what products, developing channels for what?"

At the same time, shoe enterprises should collect information from all sides to analyze and come up with a strategy to safeguard the interests of suppliers and middlemen. Only in this way can we seize the opportunity and sustain development.

Editor's comment: the shoe industry itself is a "blade profit" industry. The price of raw materials has endangered every shoe enterprise. How do we deal with it? Yu Jinhua said well: "only by practicing deep efforts, improving potentials, increasing product value and optimizing channel construction can shoe enterprises overcome the adverse factors of raw material price increase and survive healthily."