Market Factors Lead To Higher Price Of Shoes Enterprises

The positioning of product prices is often closely related to the development of the market. Whether the imbalance between supply and demand in the market, or the rising price of raw material products, to a certain extent, will affect the fluctuation of product prices in shoe companies.
   
A few days ago, China International Holdings Limited released the relevant data for the fourth quarter of 2010. Data show that in various product lines, the number of key series of orders based on running shoes has increased significantly, 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 the 2009 earnings report released earlier this year, the average selling price of footwear and clothing last year increased by 6.8% and 6.3% respectively. According to market research, the sales price of some products in the market has increased to varying degrees by 360 degrees, Hongxing Erke, and so on.

In addition, the unit price of small and medium-sized brands of shoes has also risen, the highest increase of 5%~6%. According to the insiders, the increase in market demand and the enhancement of brand image of the company boosted the first party of sporting goods to enter the high-end market. Meanwhile, the price of these brands also increased. As for the small and medium-sized brands, they also increased prices one by one, mainly due to the substantial increase in raw materials and labor costs.

In addition to the 2011 spring and summer ordering meeting, Wang Xiang Yi, a brand agent, came to the head office to see the goods and 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. 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. {page_break}

Raise the price of star products. Unlike the small and medium-sized brands, the first corps of sporting goods 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.

Zeng pointed out that the average selling price of products increased because of the increase of market demand and the enhancement of brand image. At the same time, it has already realized scale effect, purchasing raw materials and reducing price fluctuation to 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 of the first Chinese sports brand for the 2010-2015 year five year clothing sponsor of the Premier League football club at the beginning of this year, at the end of the order meeting, he said that the group will launch a product in 2011 in the first quarter of the year, with the exception of its inherent products. The high-end products will further enhance the brand image of fashion and dynamic in the domestic and foreign markets.

Coincidentally, Chen Yu, the brand director of China (China) Limited, said that basketball basketball star products will be about 50-150 yuan higher than the original product price. Although there is still a gap between the price of NIKE and the same series products, 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 development of high-end brands.