Domestic Sports Brands Are Increasing Their Prices Under Pressure.

A few days ago, XTEP International Holdings announced the relevant data of XTEP brand in the fourth quarter of 2010. Data show that in every series of products, the amount of key series of orders based on running shoes has achieved a sizeable increase, an annual increase of 43%, which not only increased the number of 30%, but also increased the overall average selling price by 10%.

In fact, according to Anta's 2009 earnings report at the beginning of this year, Anta's average price of footwear and clothing increased by 6.8% and 6.3% respectively last year.

According to market research, 31st degree, Hongxing Erke, PEAK and so on have increased the selling price to some extent on the market.

In addition, the brand price of small and medium-sized brands in Jinjiang has also risen, the highest increase of 5%~6%.

The industry believes that the increase in market demand and the promotion of brand image and other factors have boosted the first sports matrix of Jinjiang sporting goods into the high-end market. Meanwhile, the price of these brands has also risen. As for small and medium-sized brands, prices have been raised one after another, mainly due to the substantial increase in raw material and labor costs.

And then to the 2011 spring and summer ordering meeting, a Jinjiang brand Xi'an agent Wang Xiang Yi, as usual, came to the Jinjiang head office to see the goods and place the order.

But the price of shoe products at the order meeting makes him feel pressured. The average price of each pair of shoes is 3~5 yuan.

Wang Xiangyi spat hard: the wholesale price of a pair of shoes should be 3~5 yuan, which means that when the shoes are sold to the market, the price will go up to 6%~10%, plus the increasing store and manpower cost. There will be only a little profit. If it is not done well, the inventory problem will become more severe.

In fact, there are many brands of agents like Wang Xiangyi who feel pressure. They share a common character. Most of these agents are running some small and medium-sized brands that are just starting or developing.

Originally, in the market, these brands are not well-known enough, and the product differentiation is not obvious.

However, as a head office, this can only be a reluctance to act under reluctance.

According to Li Yong, executive director of flying International Holdings Ltd., influenced by the price fluctuation of international raw materials, the rubber shoe soles were the first to raise prices since the beginning of this year. Immediately after that, shoe making materials and accessories, including leather, microfiber leather, mesh fabric, and so on, have risen in different degrees. 7788, the cost of shoe materials has risen by up to 10%~15% this year, which does not include the increasing labor cost.

Up to now, the wages of workers have risen by almost 20%.

Ding Ruizhan, general manager of Rui exhibition shoes materials Co., Ltd., on the one hand, shoe materials and manpower costs are climbing steadily; on the other hand, because factories and brands are still in development stage, they can not form scale effect and lower costs. In this way, small and medium-sized brands have to be forced to raise prices to meet the needs of survival.

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Unlike the small and medium-sized brands in Jinjiang, the first sports corps of Jinjiang is now in the domestic market.

Benefiting from the massive release of demand from the two or three tier cities and the gradual upgrading of the company's brand influence, their average selling price has increased.

Anta used to point out that the average selling price of products increased because of the increase in market demand and the enhancement of brand image.

At the same time, Anta, XTEP and so on have already achieved scale effect, raw material purchase and price fluctuation in a certain extent, thus strengthening the bargaining power of the company and enjoying the discount of mass purchase, which also enables them to control the cost well.

However, it is their real intention to raise the price of some star products and to connect the international brands.

Following the announcement this year that it became the first Chinese sports brand to be the 2010-2015 year five year clothing sponsor of the Premier League soccer club Bermingham Football Club at the beginning of this year, XTEP has just concluded the XTEP ordering meeting. XTEP said that it will develop XTEP products in addition to its products in the first quarter of 2011. This high-end product will further enhance XTEP's brand image in the domestic and international market.

Coincidentally, Chen Yu, the brand director of PEAK (China) Limited, said that the PEAK basketball star product will cost about 50-150 yuan higher than the original product of the pick, although there is still a gap between the price of the same series of products with NIKE, but the advantage of cost performance will surely be able to pry the first tier cities in China. Among them, the pricing of these products will play an appropriate role in the high-end development of the brand.