Sports Brand Faces Pressure To Raise Prices Or Cause Industry Reshuffle

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According to foreign media reports, Nike headquarters spokesman Marie said that the price of footwear and clothing products will begin to increase worldwide in spring 2012.

Lining (column), after announces the annual report, also said at a press conference that due to the increase in wages and raw material costs, the cost is expected to rise by 20% this year and the price of products will increase by two digits.

At the same time, reporters also from

Chen Yuanfeng, vice president of investor relations department, said that because the company's product market price is relatively low, "the increase in the 5%~7% market should be acceptable."

Zhao Yu, a strategic consultant at the Consulting Department of sports Consulting Co., Ltd., said that from the pricing strategy, the Chinese market has maintained a price level of about 100 yuan, such as Nike and Adidas as the market leader, and the same class products with Lining have the price difference of 100~150 yuan left and right, while Lining is the leader of the local brand, and the same class products with Anta, 361, PEAK and XTEP have a price difference of about 100~150 yuan.

"But last year, Lining took the lead in carrying out the brand remoulding, accompanied by the action of raising prices, which led to the change of the original price gradient pattern.

However, by the end of the year, the order results show that Lining's price strategy has not been recognized by the market.

Zhao Yu analysis.

Price increase or industry reshuffle

Li Zhiqi, a sports marketing expert, believes that the causes of price rise need to be seen from two aspects: on the one hand, enterprises are indeed affected in business; on the other hand, the mentality of enterprises is relatively strong.

"Under inflation expectations, enterprises generally judge that the affordability of consumers is higher than before."

Li Zhiqi said that the price increase in the past would be resisted by consumers, leading to a decline in the share of the market. "But now there is a surge of voice, and the business will take a step forward in order to raise the price, which will benefit the enterprise."

Zhao Yu said the key impact of the price increase is that the core competitive advantage of China's sporting goods once in cost will begin to decline.

Zhao Yu analysis, "it is very likely that some brands will take advantage of the market shock caused by the price increase to launch a more aggressive pricing strategy, thereby snatching the two or three line market as the base of local brands, such as Adidas's recently launched low price strategy (below 300 yuan)."

At the same time, the long-term high cost of the sports goods industry will also be under pressure from the market. Therefore, it is a long-term strategy to compress the channel links so as to exchange the cost advantage.

Zhao Yu believes that the rapid development of e-commerce platforms or group buying platforms will become a way of market competition.

Cheng Yuan, an analyst with Dongxing securities, said, "the price increase will lead to industry reshuffle. Whether the price will be raised successfully will decide whether the market will be eliminated."

For the industry, raising prices is the key factor in this round of shuffling.

Unlike last year's brand remolding, there is no such thing as constant change.

Zhao Yu said, "after a long period of rapid development, China's sporting goods finally have to face the bottleneck of development. The integration of industries and the re establishment of core strengths will be the key to the future and better life."