Most sports brand Brewing price

Trainee reporter Teng Feqin following the fashion price in recent years, "rising every year", the overall increase in the movement of the brand will also usher in a new round of "price surge", many sports brands have said that this year, the retail price of products will maintain double-digit growth. Li Ning (column), Anta, 361° and other sports brands have not been in the recent earnings to increase the price of footwear products. Nike also said it would significantly increase the retail price of its products in the spring of 2012 to offset rising cost pressures.　　In this regard, professional analysis, for sports brands, raw material costs accounted for the proportion of sales price is not large, the increase in prices more because of human, marketing and research and development costs. Rising costs lead to gross profit margin in the third quarter of the 2011 fiscal year, Nike reported higher costs due to rising international oil prices and cotton prices, making the company's profit level in the third quarter not up to expectations. Although Nike's operating income for the third quarter of 2011 was $5.08 billion, a 7.3% increase from the previous quarter, the company's gross profit margin was 45.8% per cent, down 1.1% from a year earlier. Nike's old rival, Adidas, also faces a "Damoclet sword" of rising costs, with Adidas ' net profit of 7 million euros in the quarter, down 64% from a year earlier, according to the company's fourth-quarter earnings of 2010, released March 10.　　Adidas explains that the cost of raw materials has soared and capacity constraints have increased operating costs. In the local brand Li Ning 2010 Annual results announcement, the reporter noted that the company's main brand Li Ning licensing sales costs from the 2009 3.96 billion yuan sharply rose to 4.54 billion yuan, gross margin also from 2009 48.5% down to 48%, " Due to the industry upstream suppliers of raw materials and labor costs continue to rise, as well as the year some of the classic Li Ning brand discount cleaning, resulting in a slight decline in the brand's gross margin.　　In the announcement, Li Ning Company explains. "Cotton prices have risen by one times, oil, human costs are rising, to the enterprise cost digestion brought great pressure." Li Ning Company spokesman Zhangxiao to reporters.　　According to Zhang, chief executive of Li Ning, the cost will rise by as much as 20% this year, and the price of products will grow by two digits. Footwear Products This year or two-digit increase in cost pressure seems to be a common excuse for companies to raise prices. Mary Remze, a Nike US headquarters spokesman, said in a recent media interview that Nike planned to significantly increase the price of sneakers and sportswear in the spring of 2012 in order to ease rising oil, cotton and transport cost pressures due to rising production costs.　　It is understood that Nike will be in the next few quarters of the price increase in the style of products, prices to assess, and determine whether the price increase will affect the company's short-term financial situation, long-term growth and market competitiveness. Shizhong, the chairman of Anta company, also said that the company's product prices would rise again this year, with an estimated annual growth of no more than 10%. "Chinese consumers ' disposable income andIncreased demand for sports and health-care products, improved brand reputation and image, together with the services provided by distributors, have become an important factor in the increase in average retail prices. The 2010 Annual report of Anta is an assessment of the price increase.　　In addition, Li Ning, 361° and other sports brands also in the recent release of earnings or ordering data, said to increase sales prices, average 10% per cent. Raw material cost not the main reason for this round of sports brand "price surge", CIC consultant light industry researcher Xiang analysis that sports brand price increases are usually based on raw material cost prices, human costs and increase marketing costs and other reasons for price increases. But the cost of raw materials is really small compared to the price of sales, the increase in costs is reflected in human costs, marketing costs and research and development costs.　　The average premium brand price rises, the consumer is not very sensitive to its price change, but to the sports brand in the low-end market, the consumer may choose other products because of the price increase, thus causes the consumer to lose. Xiang pointed out that, taking Li Ning brand as an example, the reason for the brand price increase is not only because of the rising cost, the main purpose is to shorten the price gap with the transnational sports brands. But when it raised prices last year, brands such as Nike and other multinational sports brands were cutting prices, which led to a decline in the sales of Li Ning's brand.　　However, at this stage, the price of the Li-Ning brand is not very concerned about the consequences, the future prices are expected to continue to rise. "In addition to the cost of price increases, more consideration is positioning." "Li-Ning company spokesman Zhangxiao told reporters, and low levels of consumer market price drive, the one or two-tier city consumers on the sports brand functional and innovative needs of increasing, Li-ning company also in product design, technology content, functional upgrading of the development of more cost." "For example, sports shoes will be further studied in terms of comfort, shock absorption, bounce, light, personalization and fit." ”