Price Rise Shoe Enterprises Always Take The Cost Of &Nbsp, And Profit Can Not Resist Is The Main Reason.

August 2nd news with rising prices, flames and shoes and clothing

It is understood that since the first quarter of the price increase, Lining sports brand has begun brewing a new round of price increases.

Lining's rise in price allowed its clothing and footwear orders to drop by more than 7% and 8% in the second quarter of this year.

It is precisely because of the decline in orders, known as the leader of the domestic sports brand Lining has been shaken by many rising stars, in which the two or three line market for many years Anta and 361 degrees are also in the ranks of the price increase, while dancing with Lining, but also for this price surge "momentum".

However, through several rounds of price increases, the price advantage of domestic sports brands has been gradually weakened, and the price of some domestic sports shoes is almost the same as that of the international brands Adidas and Nike, which will cause a certain impact on its sales volume.

In the face of the rising price trend of the two or three line domestic sports brands, consumers have said that they can't afford to hurt. The price of the domestic sports shoes is mainly concentrated at 300-500 yuan, and after the new round of price adjustment, the price will begin to approach the lower price limit of Nike and Adi 600 yuan.

After the price rises, do you choose ADI, Nike or Lining and Anta? Obviously, it is no longer a problem.

Someone has done such a survey, interviewed 20 citizens outside the major sports brand stores, and found that 8 of the respondents said they would prefer to buy ADI or Nike after price adjustment.

For consumers, it is obviously a kind of helplessness to pay for Nike Adidas, which is more expensive. However, in the face of the distance between domestic shoes and clothing brands and international first-line brands, such helplessness is taken for granted.

In this regard, experts pointed out that in the competition with international brands, domestic brands must recognize their target groups, and can not easily follow the trend of price increases, and "guarantee quality and value".

Local brands should be cautious in adjusting prices, and they should not "rise in line".

When we really need to adjust prices, we must have a clear price gradient for price adjustment time, price adjustment and price adjustment areas, so as to reduce the loss of consumers.

Why do shoe companies always raise costs?

As we all know, cost is the promoter of the brand price increase of domestic shoes and clothing. However, after several rounds of regulation and control in the country, the cost problem has been preliminarily controlled, and the impact on the footwear industry has become smaller and smaller.

After investigation, it has been found that the price of "crazy cotton", which was once the main driver of price adjustment in the last round of sports brand, has actually dropped from high.

In addition, the "labor shortage" has led to a significant increase in the cost of labor in shoes and clothing enterprises, and after entering the two quarter, this situation has been maintained at a relatively stable level.

"In fact, the brand added value of sports brand has a larger proportion in its price, so its profit space is enough to digest the pressure brought by the rising cost."

CIC consultant light industry researcher Zhu Qinghua said.

However, many shoe and clothing brands insist on the "cost push theory". They say that the cost factors such as the rents of raw materials, manpower and commercial real estate rents have led to the low profit margins of enterprises, so they have to relieve the pressure of enterprises by raising prices. Why?

The author concludes:

Profit is an irresistible temptation.

In fact, "profit" is the main reason why the domestic shoe and clothing brand can push forward to high price with pressure. Just like the domestic real estate industry, the high profits make many real estate companies get together with the property market.

However, in the face of development, such a trend is a very reckless move, because "long line fishing for big fish" can maximize profits. Only by focusing on firepower and occupying the specialized market can we successfully squeeze into the unbeaten field of the industry.