Sports Brand Price Increase Is Intended To Raise The Price.

"Lining, it is possible to raise prices", "Anta, the price will never stop", "361 degrees, more yuan"......

In the near future

The five major movements

But the cost to achieve this goal is to increase investment in various aspects such as product technology, shop scale, marketing and so on.

According to the organic research, it is reflected that customers will pay more than 50 yuan or even more for their shoes than ever before.

Whether consumers buy this account is also testing the major enterprises.

The cost of raw materials is difficult to cover up.

Following the end of March, Nike's "led" led many brands to follow suit and raise their prices.

It is understood that the situation is close to Lining.

According to the XTEP winter orders, the order increased by 27% compared with the previous order, while footwear and clothing prices rose by 10% and 17% respectively.

When Anta announced the first time this year to raise the price of its products, chairman Ding Shizhong said that "the annual growth rate is expected to be no more than 10%".

When we released the data of the order meeting in the fourth quarter of 2011, Anta concealed the specific figures, only saying that the average selling price of sports shoes and clothing was also double digit increase compared with the same period last year.

The explanation for the collective price increases of local sports brands is also the same.

According to the semi annual report of XTEP, the cost of employees increased from 81 million 318 thousand yuan to 95 million 345 thousand yuan in the same period last year, an increase of 17.2% compared with the same period last year. The cost of raw material sales was 537 million yuan, an increase of 18.7% over the same period last year.

Earlier, a sports brand insider revealed: "the price of fabrics has increased considerably, especially the price of imported fabrics has risen by more than 30%, and the wages of factory workers have just risen, otherwise skilled workers are hard to recruit."

PEAK CEO Xu Zhihua also said that the biggest reason for the increase was the increase in wages of raw materials and workers, resulting in a significant increase in costs.

For this reason, PEAK is also considering raising the price of shoes and clothing by 5% to 10%.

But with the price of "crazy cotton", which was once the main driver of the price adjustment in the last round of the campaign brand, the price of chemical fiber raw materials, one of the raw materials of clothing, has dropped significantly after the second quarter.

Before the "labor shortage" led to a significant increase in labor costs of Jiangsu and Zhejiang textile enterprises, after entering the two quarter has also been maintained at a stable level.

Experts say that the main reason for the rise in prices of many sports brands has been untenable due to rising cost of raw materials and labor.

It is surprising that domestic sports brands choose to raise prices again.

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Behind this is market competition.

For this round of collective price increases of domestic brands, Xiong Xiaokun, an advisor to CIC light industry, analyzed that under the background of price level, store rental cost and labor cost increase, and now the consumption level of consumers gradually shifted from low to high end, the price adjustment was also the choice that enterprises had to make.

Li Ning Co stakeholders also said that not all sporting goods companies raise their prices because of increased costs, mainly because they want to enhance brand positioning and narrow the distance between them.

It is understood that Nike, Adidas and other international brands are trying to adjust the channel structure and enter the two or three line market.

This makes Lining, Anta, XTEP, and other domestic sports brands feel the pressure.

"The trend of price change is to gradually eliminate the threshold of competition between international and domestic brands of different grades, and will eventually usher in a double-layer battle between the same market channel and the same price range."

C harlie, deputy general manager of marketing.

After years of extensive development, although it has built its own brand of local enterprises, it is facing pformation in the face of rising costs, losing price advantage, market homogenization and competitors.

"We have set up a new commodity operation center to develop and upgrade the online POS system. Through real-time collection and analysis of daily sales data and inventory data, we can not only improve the level of dynamic management, but also provide scientific decisions for developing new products."

C harlie believes that improving the core competitiveness of the brand is an inevitable choice.

Channel resources are still scarce resources in the future, especially the three or four line market.

"Channel has become an important part of the domestic shoe and clothing brand to maintain market advantage, and the means to maintain the advantage is to have a healthy and healthy network layout."

The responsible person of China clothing association said that with the development of urbanization in China, the purchasing power of small and medium-sized cities has been increasing.

The foundation of domestic sports brand is in the three or four line market. Whoever can stand steadily will enjoy the fruits of this round of attack.

It is reported that Lining, 31st degree, noble bird, PEAK, XTEP and other brands have developed the store plan early, ready to expand the number of stores to 1 000 in 3-4 years.

As of July this year, there were more than 1000 new stores in the world, an increase of 7.5% over the same period last year, of which the success rate of new shops has increased significantly.

C harlie revealed that "in many small and medium-sized cities, you can see that the" big bird "has increased the strength of big shops.

Like Hebei Baoding 316 square meters and Shandong Zaozhuang 380 square meters of stores.

At the same time, the brand also upgraded the image of the terminal store.

A dealer told reporters that the improvement of channel structure has brought up some efficient sales areas for them, but the cost of these inputs will also shift to the terminal.

Zhu Qinghua, a light industry researcher at CIC, thinks that increasing cost pressures is indeed an indisputable fact, but it has not pushed these sports brands to the point where they can not rise. In fact, the brand chooses to rise in price at this time, so that cost pressures can be used as a reason to weaken consumers' sensitivity to price increases.

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Raise the price for soft power

The price of sports products is hidden behind the "secret warfare" of brands in technology, brand marketing and so on.

Now, in some relatively developed cities or regions, there are even signs of better consumption of high-end and new products.

This consumption trend is more concerned about the function and personality of shoes from the perspective of footwear products.

It is precisely because of this trend of consumption that shoe companies will have to increase their R & D efforts. Besides the quality and function of products, they should also attach importance to the enhancement of added value of products.

Compared with the price increase of raw materials, technological innovation is a greater investment, so this has become an important reason for many enterprises to improve product prices.

It is understood that Nike has more than 100 technicians engaged in research and development of new products.

Therefore, every month, Nike has a series of new products coming out to lead the trend of world sports shoes.

Strong R & D technology, R & D personnel and R & D investment has become a powerful power for enterprise development.

However, this is also a huge investment. Nike has invested $4 million in new product development.

In the current round of price increases, the word "product development" and "high quality" appeared in the major sporting goods.

Take sports shoes as an example, in terms of product development, after Lining launched the "string bow" technology, Anta immediately launched the "elastic glue" damping technology, while Jordan responded with the "full palm ventilation system".

And in order to win in the brand competition, many shoe companies spend a lot of money on the brand marketing.

In Lining's 2010 earnings report, the overall distribution cost in 2010 was 2 billion 511 million, accounting for 26.5% of the group's total revenue, while in 2009 it was 25.7%.

In 2011, the proportion of advertising sales promotion expenses planned by Lining will increase by about 2 percentage points.

Anta, PEAK and 31st degree have also sponsored different events to expand their influence.

Anta's advertising and publicity expenses accounted for 12% of its revenue in the first half of this year, an increase of 0.8% compared with the same period last year.

PEAK's advertising and promotion expenses in 2010 were 11.3% of sales revenue, compared with 7.5% in 2009.

However, whether it is technological innovation, increase the added value of products, meet consumer demand, or fight for brand competition, enhance brand image and expand influence, at least, it shows that the competition of modern shoe enterprises has entered a higher level.

"Although this will bring a lot of blow to some enterprises, but from the perspective of PEAK and the whole industry, I do not think it is a bad thing."

Xu Zhihua said that because of the rising prices of products, the industry's shuffling has been accelerated and the concentration of industries has been strengthened.

However, Ma Gang, a famous sports brand observer, believes that a new round of price increases will only do more harm than good.

The reason is that many domestic sports brands are targeted at the middle class, and these people are more sensitive to price movements.

The growth of domestic sports brand sales largely depends on its price advantage compared with the international sports brand. Through several rounds of price increases, this price advantage has been gradually weakened. It can be found that the price of some domestic sports shoes is almost the same as that of foreign Adidas and Nike, which will cause a certain impact on its sales volume.

In addition, the domestic brands collectively raise prices, while also pferring some low-end market.

The result of price increase undoubtedly increases the difficulty of marketing.

The brand follows the inflation to raise or stabilize the brand grade by raising the price. At the same time, because of the inflation, the consumption decreases, and it is necessary to increase sales promotion efforts to expand sales volume.

This is a contradiction.

Therefore, while increasing prices, enterprises should also consider the degree of consumer's tolerance to price, control the price adjustment range and adjust the price range so as to avoid customer churn.

Zhang Yanlin, research director of CIC, points out that in the competition with international brands, domestic brands need not only to ensure superior quality, but also to differentiate from international brands in order to gain more market share.

It is reported that in the second quarter of this year, Lining's clothing and footwear products orders fell by more than 7% and 8% respectively.

Industry experts suggest that a domestic sports brand that does not have a very well-known reputation should not be easy to follow suit if it recognise its target audience.

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