subject: Shoe Enterprises Will Continue To Face The Power Of 90% Cotton Prices Rose [print this page] Most of the people's livelihood consumer goods industry is currently facing rising costs, but a few manufacturers of sports shoes have the ability to price one of the industry, with labor, cotton, synthetic materials, transportation and petrochemical increasing the cost, profit warnings last year began to pressure heavy shoe, has some of the costs onto consumers.
Industry to develop more lightweight nike air max running shoes, reduce joint pressure adjustable shoes, and provide custom shoes, so that consumers are willing to pay more money to buy shoes, the result is: the end of shoe shopping season to improve the pricing capability.
For the DA Davidson companies to track athletic footwear market, Anderson said: "The new products will be listed higher prices."
Anderson's nine tracks, five brands of sports shoes in December last year, the men running shoes with high average selling price over the previous month . Under Armour products, the average selling price increased 4%; Nike and New Balance, the average price of each rose 1.9% and 1.4%; nine brands overall average increase of 1%. Many manufacturers in the second half of the increased costs onto consumers.
Nike Chief Financial Officer Tony Blair (Don Blair) told analysts last June, the company that in August until the first quarter of fiscal year gross margin will be "down half a percentage point", but later the reality is that gross margins from a year ago 46.2% to 47%. Nike followed a warning "input costs", but as of November until the second quarter of the fiscal year, the company's gross margin once again higher than the level a year ago. Nike said that the main reason is the increase in gross margin increase in sales of full-priced items and discounted goods decreased. Nike is not the only one to show pricing power of the shoe, the U.S. company announced third-quarter Sketchers year earlier, gross margin increased by ten percentage points Triple; K-Swiss company third-quarter gross margin also increased. Like Nike air max 90, Sketchers, and K-Swiss whole sale price of goods have increased, discount goods decreased.
In addition to prices, shoes and more ability to manage the increased costs, such as transportation costs, but also help improve margins. CMF logistics experts Heluo Chavez consultant estimated that, even through the factory's raw materials and parts between the transportation costs, freight accounts for only 3% of the wholesale price of each shoe to 6%, which is a $ 50 shoes, the freight charges less than 3 dollars.
But shoe manufacturers do face cost pressures, analysts said, the next six months will continue to experience footwear production cycle, cotton prices rose 90% power.
