Cost Pressures Can Not Digest Sports Clothing Brand Collective Price Increases

Face

Costs, human costs and rental costs rose.

The same price is prepared to raise the price.

In 2011, faced with high costs,

The planned price increases range to two figures.

stay

In 2010, its gross profit margin was 4 billion 482 million yuan, and the gross profit margin of 47.3% was the same as that in 2009.

Lining has predicted the impact of rising costs.

In its earnings report, it is clear that gross margin will drop by one percentage point in 2011.

International sports brands are clearly priced.

Its executives also point out that the pressure to relieve rising costs depends only on raising prices.

A Nike counters in Beijing said that sales staff salaries did not rise, but the price of products did rise over last year, with a pair of trousers as an example, at least up to tens of dollars.

The price of Nike has been adjusted substantially.

It is not uncommon for different brands to raise prices annually, but collective price increases are rare.

Upstream suppliers' raw material cost is a major part of the cost, and the raw materials used by garment enterprises are almost always reserves at high price.

Chief executive officer Xu Zhida said, "fabric costs account for 60% of the total cost, while the total cost is 40%.

In March, the price of cotton yarn increased by 80% compared with the same period last year, polyester fiber increased by 20%, and the supply cost of raw materials increased by an average of 15% in 2011. The retail price will also vary according to the different categories of shoes and clothing.

The price increase will be reflected in its upcoming fourth quarter order meeting.

Xu Zhida said, "the price of this product to the agent should be increased from 10% to 15%.

The price of footwear is about 10%, and clothing is 15%.

Hongxing Erke, which is already listed, is also considering price increases.

"We plan to increase the price from 15% to 18% this year."

Its insiders said.

In their view, the rise of raw materials such as oil and rubber will lead to an increase of about 20% in cost, and only to reduce costs as much as possible.

Li Hao, general manager of corporate public relations, also said that

With the adjustment of the industry trend, the increase is uncertain.

It is reported that Anta will increase the sales price of footwear products, an average increase of about 10%.

In addition to the rising raw materials, the high cost of brand promotion or brand price increase is another factor.

One industry insider said that the increase in the number of stores or the increase in the quantity of orders, and the cost of rent, human resources and raw materials would affect the net profit in 2011.

And the rising cost of raw materials has a relatively small impact on enterprises with upstream and downstream industries. Similar enterprises with fabric production and clothing production will have less impact on YOUNGOR, which will have a greater impact on OEM retail companies and outsourced and sub contracted businesses.

People also say that the cost of a garment is 20% to 30%, which is about 60 percent off for distributors, and the lowest is 15% off when new products are sold normally, and 35% off or 30 percent off discount for discount sales.

But for some smaller and less influential brands, the cost increase is fatal.

One industry insider said that some small brands that originally survived in the three or four tier cities rely on price to attract people. But after the rising cost of raw materials, brand acceptance will be tested for famous brands such as Nike and Adidas. For small businesses that rely on price, the market will be even more difficult.

"The small garment enterprises in Fujian have been affected."

Xu Zhida said, "rising costs will clean a small number of brands."