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    Price Increase Is A "Double-Edged Sword" &Nbsp; The Future Of Sports Brands Is Unknown.

    2011/7/25 13:11:00 39

    Price Rise Lining Brand

    Recently, " Lining "Leading" and "top ranking" sporting goods manufacturers are in the forefront. Order-placing meeting The news of the price increase of shoes and clothing has been released, including Anta, XTEP, PEAK and 361 degrees. Once the news came out, the consumers and the industry were in an uproar, and the voices of boycott and abuse were coming. Consumer "Paying for the bill," which makes the sales volume of these sporting goods more variable in the future.


    Price increases are not just clouds.


    For the general public, apart from the stock falls, it seems difficult to find things that do not raise prices. Nowadays, sporting goods manufacturers are also riding the "east wind" of the "rising price". Recently, domestic sporting goods manufacturers sell "one brother" Lining and "Jinjiang Department" on behalf of Anta, XTEP, PEAK and 361 degrees at the order meeting to announce the price increase. Among them, Lining claims that in the fourth quarter, the price of shoes will increase by 7.8%, and clothing will increase by 17.9% overall, while the sports shoes and garments of the above mentioned enterprises in Jinjiang will increase by 20% to one. The price increase is less than three months from the collective price rise of the last five famous sports brands in China.


    "Raw material costs, labor costs are rising, prices are rising very normal." CEO, a well-known sporting goods manufacturer in Jinjiang, told the media. According to the Research Report of relevant authoritative organizations, the price increases at around 400 yuan, which means that consumers pay at least 60 yuan to 70 yuan on shoes and clothing products. Another person in charge of a sporting goods company said that compared with the same period last year, the cost of products, operating costs and the huge R & D expenses of new technology and new products increased sharply this year, which seriously affected the company's capital reserves and cash flow.


    Embarrassment, consumer confusion


    Products that are boycotted by the majority of consumers tend to fall off sales. Although the news of the price increase of these sporting goods manufacturers has not yet brought any direct impact, consumers have come to ridicule with "scorn".


    Many netizens have rewritten slogans such as Lining's "price increases are possible", Anta's "raise price never stops", XTEP's "bid price difference", micro-blog's "361 yuan" love "one more money" and PEAK's "I can raise price unlimited possibilities".


    "When prices go up again, brother goes to buy a brand name brand or a sports goods brand that doesn't rise in price. Anyway, it feels almost the same." Mr. Lee, who likes sports shoes and clothing products, said, "what makes these brands go up and go up again? Buying domestic brands is already cheap. If the price is close to Nike and Adidas," Nike and Adidas now know that they are going to take advantage of low price products to seize the domestic market of the three or four and lower level cities, and how the domestic brands will keep rising. Fujian Shishi citizen Ma is very puzzled domestic sports brand price move, "if Nike and Adidas will not rise next, then what is the price of domestic brands?"


    Hesitation, rise or fall to be determined


    If many consumers abandon their products because of the "Lining" price increase, it is good news for Shishi sporting goods manufacturers who are still exploring the market.


    As we all know, the number of independent sporting goods brands of Shishi is not large and its market share is not high. In view of the limited capacity, no matter the increase of manpower cost or operating cost, it is inferior to the top domestic sporting goods manufacturer. "If we increase their prices, we may have more advantages." The marketing director of a sporting goods manufacturer in Shing Xiu said that the number of sporting goods brands in Shishi City is small in size and low in scale, with a small area of 100 square meters. The overall operating cost is not high, and the price rises do not seem necessary.


    But some companies hold different views.


    Yongning, a sports production company responsible person believes that Shishi many enterprises are OEM for Jinjiang enterprises, if found that the production costs are high, Jinjiang and other regions sporting goods brand will transfer orders to lower production prices, for Shishi sporting goods manufacturers, especially OEM enterprises, the price increase is not good news. "In fact, the rise in price is a double-edged sword, which will help enterprises to rapidly increase sales, and the market share may be reduced, and sales will be reduced." Insiders said Mr. Fang.

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