How Should Nike Deal With The Price Increase Of Local Shoes And Clothing In The Season Change

False price increases include

A few days ago, a reporter visited several streets and shopping malls in downtown Quanzhou and found that summer clothing and new autumn and winter clothing are equally popular in terms of attention. Many consumers who come to "bargain hunting" will pay attention to new summer clothing while buying discounted summer clothing. Compared with previous years, the prices of ordinary new products of most brands have declined steadily, but careful consumers still find that the prices of some less well-known brands have increased significantly.

"The clothes in their shop were only about 200 yuan in the past year, but now they have risen to about 400 yuan per piece. However, the clothes in summer are on sale, and some are on sale." Ms. Chen often goes shopping, and she finds that the prices of clothes in some street stores in the urban area are still increasing.

According to the analysis of the insiders, many brands will choose to raise prices first and then discount to attract consumers with large-scale preferential measures.

It's rare to see a real price increase

At present, whether it is Lilang Seven Wolf The first line men's wear brands of Fujian style are still emerging women's wear brands in Quanzhou, such as Jinyuan and Girls Next Door. They are very cautious when it comes to prices. In the previous three years of 2009, 2010 and 2011, the price of clothing in the whole industry has been rising steadily, and even some brands have raised the price by 30%. The financial reports for the first half of the year released by listed companies in September last year showed that the average price of special clothing products increased by 13.9%; The price of Anta clothing products increased by 7.1%. At that time, the senior management of Seven Wolves, Lilang and Powerba all admitted that they had raised the price by about 10%.

"The current pricing has gradually returned to rationality. A large part of the previous price increases were to promote performance, and also to 'fatten' the brand." Industry insiders said, for example, the cost rose by 50 yuan, but when it came to terminal pricing, it often doubled the relevant price increases to 200 yuan. After years of market experience, it has been proved that the simple price increase, which is similar to drug abuse, has been gradually abandoned by Fujian style clothing enterprises.

"We will not raise the price for the sake of big discounts later, and we have rarely even offered discounts." Mao Jinhua, general manager of Jinyuan Clothing, said that the biggest reason to stimulate consumers to buy is still style rather than price. If we blindly raise the price and then discount, it will only hurt those loyal customers and affect the brand image.

"Our current discount is also very small, generally only 10% off for members, but our pricing is very realistic, the average price of each piece in summer is only about 100 yuan, and the average price in autumn and winter is only about 200 yuan, which is in line with the consumption ability of our young fashion target group." Chen Zhiwen, the vice president of the girl next door, believes that the way of discount by raising the price is like killing the goose that lays the golden egg, It can only achieve a temporary sales purpose, and has no long-term market effect.

"The number of first-line brands that have room for price increase has risen in the past few years. Although the cost of labor and raw materials are still rising, the enterprises that have been hit by the cost increase have been committed to upgrading management technology in terms of cost reduction in recent years. Therefore, in the current economic situation, it is correct for enterprises to seize the development theme of 'stability'." According to the analysis of insiders, Assets light enterprises such as girls next door have no production lines of their own, so there is no inventory pressure, and there is no need to "raise prices in a curve" for promotion.

"Buy it and give it away" is increasingly popular

In fact, after many discount seasons, consumers are less sensitive to the word "discount". In addition to the factors of inventory pressure, many clothing stores, including some brand stores, are no longer restricted to the way of discount, but are more interested in the promotion method of "buy and give".

"20% off for one piece, 60% off for two pieces and 40% off for three pieces." Quanzhou You can see such promotional slogans on Zhongshan Road in the downtown area. Ms. Chen, who has been engaged in clothing sales for many years, said that the way of multi piece discount has been popular for two or three years, and now there is still a free purchase discount for more things, such as buying two pieces at the original price and getting one free, etc. Some large enterprises also quickly followed up, and Anta launched the activity of buying children's shoes and clothing within a time limit of one free two. In Dayang Department Store, some women's clothing brands from other places even give 30% off first, and then buy 2 and get 1 free. "Direct discount will cause many consumers' psychological imbalance in the early stage, which is not conducive to the brand maintenance of enterprises. In order to digest the inventory, it is more reasonable and effective to have a way to buy and give away," said the industry insiders.

According to media disclosure, Nike Recently, it was announced that it would raise the price of its shoes and clothes by 5% - 10%. Mary Remuzzi, its spokesman, stressed to the media that Nike is not blindly raising prices. "We are always trying to use new innovation and product performance to improve our product range." However, it remains to be seen whether consumers will buy the price after this price rise.