Cost pressures lead to broad based

Upstream suppliers of raw materials cost is the cost of the main part of the garment enterprises at present almost all high-priced raw materials used during the reserves.

    Peak Group (hereinafter referred to as "Peak"), up to chief operating officer, said Xu, "material cost share of the cost of 60%, while the other 40% of total costs. March prices rose 80% cotton and polyester prices 20% of the cost of raw material supply in 2011 will rise 15% on average, retail prices will be based on the different categories of shoes, or are different. "

    Peak price increase will be reflected in its upcoming fourth-quarter orders at. Xu reached that "the hands of the product price to the agents should be 10% to 15% of the increase. Which footwear prices rose about 10%, 15% for clothing."

    ERKE listing plan has also brewing price increases. "We planned for this year is 15% to 18% price increase." The insider said. In their view, oil and rubber and other raw materials prices will lead to cost growth of about 20%, can only try to reduce costs and prices is the trend.

    Anta Sports (hereinafter referred to as the "Anta") Lee, general manager of Corporate Communications also said that ANTA would be adjusted as the industry trend, as to increase the current uncertain. It is said that Anta, 361 ° to "improve the footwear product sales price", with an average increase of about 10%.

    Anta earnings in 2010, the impact of rising costs has been reflected. As of December 31, 2010, footwear was 3.6% higher costs, clothing costs 5.7%. The rising cost of making shoes in 2010, Anta own production, subcontracting and outsourcing of production costs, production rose 7%, respectively, 7.7% and 38.4%.

    Remove the raw materials rises, the high cost of brand promotion, or other factors in brand prices. All the various brands to increase investment in promotion.

    Li Ning 2010 earnings report shows that by 2010 the overall distribution cost of 2.511 billion, accounting for 26.5% of Group revenue, while in 2009 this figure was 25.7%. In 2011, Li Ning, Oakley Sunglasses marketing, advertising and promotion expenses planned share sales ratio will increase about 2 percentage points.

    Branding is more than the cost of Li Ning, a growth, Anta, Peak, and 361 °, also have sponsored various events to expand influence. Olympic in 2010 cost of advertising and promotion of sales 11.3%, compared to 7.5% in 2009. Nike Air Max 2009 Brand of war has to function from the product value-added products.