Raw Materials Rose &Nbsp; The Two Or Three Tier Market Has Become The Main Breakthrough Point For Shoe Companies.

February 24th hearing as the main sports shoes

Prices of raw materials such as petroleum and rubber have gone up sharply.

Petroleum, rubber, cotton and so on are the main raw materials of sports shoes. Recently, the prices of the three main raw materials have risen to varying degrees.

Zhu Gao, deputy director of information and marketing department of Sinopec [8.56-2.06%] Federation, said that the era of high oil price has basically arrived.

The price of natural rubber reached the highest level in history. In 2010, the price of domestic natural rubber started from 25000 yuan / ton. In November of that year, it hit a record high level of 39800 yuan / ton.

In the investment report, Guo Lian Securities believes that the price of natural rubber will continue to rise in 2011.

The price of raw materials has put pressure on many sports shoes. Anta, 31st degree and other enterprises said in recent earnings reports that raising the sales price of footwear has become the main choice, while an industry insider of Sichuan shoe industry told the Chengdu Commercial Daily yesterday that "the price of raw materials will have a greater impact on shoemaking enterprises. The average estimate will increase the cost by about 10%."

Brand shoe companies raise prices

Anta's February 21st earnings report showed that the average selling price of Anta's footwear and clothing products increased by 4% and 8.8% respectively last year, and the price of Anta shoes will increase in 2011. Anta's management said in its earnings report, "production costs will continue to rise. In order to cope with inflation, this year's products will increase, but the average range is about 10%."

In a February 22nd earnings report, another big brand shoe company said that the average selling price of shoes increased by about 5.5% in the second half of last year under the pressure of staff costs and rising raw materials, and the average selling price this year will also rise.

XTEP and PEAK's recent third - quarter 2011 order data also showed that in 2011, XTEP and PEAK 's sneakers will be sold at a higher price, driven by raw materials and manpower costs.

XTEP said, "footwear prices increase by less than 10%", while PEAK clearly stated that its footwear products will increase by 5% to 10% in 2011.

As a product supplier of Anta, XTEP, 31st degree and Hongxing Erke, the footwear industry of Tai Ya also announced in its 2010 annual performance bulletin published in February 17th that the sales price of sole and related products was raised by the price of raw materials.

"Horse race enclosure" two or three level market

With the rising price of raw materials and the fierce competition in the first tier cities, how will the brand sports shoes manufacturers in the future? According to the earnings and order meeting data recently released by relevant enterprises, the two or three tier market has become the main breakthrough point for shoe companies.

XTEP recently released the 2011 third quarter order meeting data, this year the company will focus on the two or three level market to open shop, plans to increase 800~1000 new stores, mainly in Sichuan, Hunan, Anhui and Shandong.

Anta added 968 new stores last year, mainly in the two or three tier market, and its earnings report will continue to accelerate the expansion of the two or three tier market this year, and plans to increase its network to 1.

Even Nike and Adidas sports shoe giants announced in the development plan released last year that the number of stores in the two or three tier market will increase in the next five years.

In response, Lai Yitang, a [12.020.00%] analyst at state Yuan Securities, said the encounter of sports shoe brands has just begun.