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    Big Brands Announced Price Increases Of &Nbsp; Small Shoe Companies Were In A Dilemma.

    2011/4/23 9:10:00 63

    Brand Price Rise Lining

      

    Adidas

    ,

    Lining

    Recently, it has been announced that the price of most products should be raised on the basis of rising raw materials and costs, resulting in a decline in profit margins.

    At the end of the third quarter Anta conference, its retail price has increased by 5 - 10%.

    361 degrees

    XTEP and other brands also heard price rises during the shoe Expo.

    Hou Zhaohui, vice president of 361 degrees, said that the price increase is not only based on the increase of raw materials and labor costs, but also takes into account the brand positioning and the growth of expenditure on R & D and marketing.


    But for most small and medium enterprises in Jinjiang, price increases are not an easy decision to make.

    Li Mingqu, who works in a three line brand marketing department, told reporters that although the cost of raw materials and labor has risen sharply, dealers have responded fiercely to the price rise of their products. "Now the market is not easy to do.

    Some brand shoes are cheap and have their own advantages.

    Large brands have fixed consumer groups, and consumers are not too sensitive to their price changes.

    The most difficult part is our three or four line brand.

    It is difficult to guarantee basic profits without raising prices, and the price increases will squeeze consumers into miscellaneous brands.


    And for foreign trade enterprises, the days are even more difficult.

    In addition to rising costs, exchange rate changes should also be dealt with.

    He Wenhui, general manager of Quanxing shoes and Plastic Co., Ltd., holding a signed order, told reporters that the exchange rate of the renminbi against the US dollar was 1 to 6.52, but the delivery time was not enough, but the delivery time was much lower than that of Jinjiang.

    At present, foreign trade is not easy to do. If there is a big fluctuation in exchange rate, it is possible to do business at a loss.

    The good news is that the European Union announced the lifting of anti-dumping duties on footwear products up to 16.5% from April 1st, which allowed Chinese products to have room to negotiate with EU customers.

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