Nike Raises Prices Significantly Industry Shouts Unreasonably High Prices

It is reported that Nike plans to raise the price of its products by 5% - 10% in the autumn due to increased cost pressure. This price increase will directly affect Nike's 10th generation LeBron basketball shoes. It is reported that this sneaker is expected to sell for more than 2000 yuan. The retail price of its previous generation products is 1599 yuan. The price of more than 2000 yuan may also become Nike's most expensive basketball shoes. In fact, the price of a pair of Gucci men's casual shoes on some e-commerce websites is only 1999 yuan. Although Nike spokesperson Mary Remuzzi has repeatedly stressed that Nike is not blindly raising prices, "we are always trying to use new innovations and product performance to improve our product range". However, the above statement is not recognized by the industry.

be familiar with Sports market In order to increase prices smoothly, Nike has already planned ahead of schedule, according to. During the London Olympic Games, Anta, Li Ning, 361 ° and other domestic sports brands took advantage of the opportunity to market, while Nike was uncharacteristic in the Chinese market, only maintaining ordinary promotion efforts, without too much effort. In the past half month, all the stars of Nike's multiple series came to the Chinese market to promote. This is a round of concentrated momentum building before Nike plans to raise prices. The purpose is to compete with domestic brands to raise prices and stabilize market share.

However, Nike's price increase has not yet affected the Beijing market. Yesterday, the relevant person in charge of Anzhen Hualian's Nike counter said that he had not received the notice on the price increase of Nike for the time being. Recently, Nike has increased its price more than once. In March last year, Nike said that it would start raising prices globally for footwear and clothing products in the spring to cope with rising oil, cotton and transportation costs.

With the substantial growth of raw material and labor costs, Nike's raw material and transportation costs have been rising in the past two years, bringing pressure to its profit growth. According to its latest financial report, Nike's gross profit margin fell from 44.3% to 42.8% as of May 31, the sixth consecutive quarter of year-on-year decline. As Nike's second largest market, the Greater China market also saw a decline in sales revenue in the fiscal quarter, including footwear clothes The total sales revenue of products including accessories was $667 million, down 3.89% from the third fiscal quarter.

Nike's old rival Adidas It's not easy. A month ago, Adidas said that it would close its only factory in China, and would cancel the OEM agreement with some of the factories from October to April next year. In fact, Adidas is not the first company to evacuate. As early as 2009, Nike also closed its direct factories in China, and then moved its production base to Southeast Asia, where costs are lower. Many insiders said that Adidas would also cooperate with Southeast Asian manufacturers to ease the operating pressure brought by human costs.

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