Survival And Defense Of Sports Shoes

Because

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.

Deputy director of the Sinopec information and marketing department, Zhu Zhu, said that the era of high oil prices 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 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 in Sichuan shoe industry said, "the rising price of raw materials has a greater impact on shoemaking enterprises. The average estimate will increase the cost by about 10%."

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%."

Another brand shoe company, 360 degrees, said in its February 22nd earnings report 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.

Survival and defense of sports shoes enterprises

In the face of "surging" raw material price surges, how should shoe enterprises respond?

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.

{page_break}

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.

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 digest the unfavorable factors of raw material price increase and survive healthily."