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    Nike'S Price Increases Adidas Moves Due To Increased Cost Pressure

    2012/8/24 8:27:00 51

    NikeAdidasNike Basketball Shoes

    Profits are shrinking due to rising raw materials, manpower and transportation costs. Nike Again, the price rises. The new basketball shoes cost more than 2000 yuan, but also let the industry shout high prices.


    It is reported that due to increased cost pressures, Nike plans to raise its product price by 5%-10% in the autumn. The price increase will directly affect Nike's tenth generation LeBron basketball shoes. It is reported that the price of the sports shoes is expected to exceed RMB 2000 yuan. The retail price of its previous generation was 1599 yuan. The price of more than 2000 yuan may also become the most expensive Nike. Basketball shoes 。 In fact, a pair of Gucci men's casual shoes are priced at only 1999 yuan on some e-commerce sites. Although Nike spokesman Mary Remuzzi has repeatedly stressed that Nike is not blindly raising prices, "we are always trying to use new innovations and product performance to achieve product upgrading." However, the above statement is not recognized by the industry.


    People familiar with the sports market say that Nike has already planned ahead of schedule for the smooth rise in price. During the London Olympic Games, Anta, Lining, 361 degrees, and other domestic sports brands took advantage of the marketing. Nike in the Chinese market was abnormal. It only maintained the ordinary promotion efforts, and did not exert too much effort. In the past half a month, all the stars of Nike have come to China for publicity. This is a concentrated rally before the price rise of Nike. The aim is to grab the price of the domestic brand and stabilize the market share.


    However, Nike's price has not yet affected the Beijing market. Yesterday, anzhen Hualian Nike counters responsible person said, has not received notice about Nike's raise price. In recent times, Nike has increased its price more than once. Last March, Nike said it would target footwear in spring. clothing Products begin to raise prices globally to cope with rising oil, cotton and transportation costs.


    With the substantial increase in the cost of raw materials and manpower, the cost of raw materials and transportation of Nike has been rising in the last two years, which has brought pressure on its profit growth. According to its latest earnings report, Nike's gross profit margin fell to 42.8% from 44.3% in May 31st, which is a year-on-year decline in the sixth quarter. As for the big China market, the second largest market in Nike, sales revenue also declined in the quarter, including sales of footwear, clothing and accessories, which amounted to US $667 million, down 3.89% compared to the third quarter.


    Nike's old rival Adidas It's not easy. A month ago, Adidas said it would close its factory in China, and will continue to cancel the OEM agreement with some of its factories from October to April next year. In fact, Adidas was not the first one to evacuate. As early as 2009, Nike also shut down the factory in China, and moved the production base to the Southeast Asian region with relatively low cost. Many people in the industry say that Adidas will also cooperate with Southeast Asian manufacturers to ease the operating pressure brought about by human costs.

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