Tracking the follow-up status of Li Ning and other brands joining forces in price increases

“Li Ning, price increases are possible”; “Anta, price increases never stop”; “361°, more money loves money”... Recently, due to the top five sports brands in China (Li Ning, Anta, Xtep, Peak, 361°) It has been announced that the next phase of the product will continue to increase prices. The above-mentioned “advertising language” written by netizens has been widely circulated.

From the end of last year to the beginning of this year, domestic sports brands launched the first price increase for the 2011 market, with an average range of around 10%-20%. The description of the reasons for price increases is mainly concentrated on rising costs. With reference to the five major brands recently held in the fourth quarter and winter trade fairs, whether it is shoes or clothing, there will still be an average double-digit increase. Last year, the domestic sports brand's main selling price for winter clothing was concentrated at more than 200 yuan. This year is expected to exceed 300 yuan.

"The consumer will have a clear perception"

Li Ning Company recently announced that the price of footwear products will increase by 7.8% in the fourth quarter and apparel will increase by 17.9%. Prior to this, Anta, Xtep, Peak, and 361°C, at the end of the year-end market, had their product prices similarly "up and down". Of which 361° is closer to Li Ning. According to data from its winter fairs, the amount of orders received by Xtep has increased by 27% from the previous order meeting, but at the same time, the average selling prices of footwear and apparel have also increased by 10% and 17% respectively.

Peak and Xtep only announced growth in the amount of orders, and did not announce specific product price increases. However, there are dealers reporting to Nandu that the increase in the total amount of orders is also due to a large part of the increase.

As for the current domestic Anta sports equipment brand in the highest market value, this year for the first time announced the price increase, Anta chairman Ding Shizhong once said that "the annual increase is expected to not exceed 10%.". At the time of the announcement of the fourth quarter of 2011 trade fair data, Anta evaded specific figures, saying only that “the average selling price of sports shoes and apparel also had a double-digit increase over the same period last year.”

“The first price increase in April was for spring and summer clothes, this time for winter clothes, which is part of the annual price increase plan.” said one reporter of the above-mentioned brand, who declined to be named, told reporters in Nandu. “This is not the second price increase.” However, some dealers report that the price of the clothing category at the first price increase is not high. With spring and summer wear, the price base of the product itself is low, and the consumer experience is not obvious. . While winter clothing is more expensive, this increase is more than double digits, and consumers will obviously feel the price increase.

Taking Li Ning as an example, when prices were raised in April this year, 11.1% of shoes were sold, and only 7.6% of clothes were sold.

Price increase is a "technology live"

During the first price increase in the first half of this year, the reasons for the top five sports brands were "soaring costs." Including the rapid rise in cotton prices in the first half of the year, labor costs have caused labor costs to rise. Shortly after the sports brands raised their prices, raw material prices such as cotton began to fall. Although cost pressures still exist, the main reasons have shifted from the production end to other aspects.

For example, Li Ning’s external affairs department and public relations director Zhang Xiaoyan attributed the price increase to two aspects. On the one hand, the industrial environment, such as raw materials, labor, and rental costs, rose; on the other hand, the company increased the cost of product R&D investment and led to rising costs. 361° also did not regard rising costs as the sole rhetoric. To appear “reasonable in price”, 361° emphasized that the batch of garments as a whole had “high quality”.

“In fact, from the consumer’s point of view, the price increase caused by the improvement of the brand and quality is the easiest to understand and accept, but if the price rises too fast, there is a risk that the price of the product will be out of line with the value of the brand.” Liao Jierong, an analyst, believes that, from the current price increase, Li Ning’s five brands are priced slightly higher than the other four, so their competitors, in addition to domestic brands, are Nike, Adidas and other international brands. on".

In addition, Anta and Peak must also pay more attention to their dominant position in the 234-class market. “The consumer price sensitivity of this type of market is relatively high.” Liao Jierong said that if the price increase is too fast, it will be easier for the third-tier brands and international brands that are interested in deeper development to “take advantage of”.

International brands are also raising prices

Unlike domestic brands, international brands do not place the details of the regional market order meeting in company announcements. However, yesterday, the Southern Metropolitan reporter also asked Nike China and Adidas China company related persons, whether there will be winter clothing prices plan, but the spokespersons of both companies are reluctant to disclose details.

"They are also rising. For example, Adidas announced a price increase to its domestic distributors at its new product order meeting this winter and next spring. The clothing range is about 10%." A local distributor who attended the trade fair told reporters in Nandu. It said that although the average increase was not as high as domestic brands, international brands were manufactured in China and they also face cost issues in raw materials, labor, and commercial real estate.

In March of this year, Nike had a high-level report in the third financial report that clearly stated that to ease the rising cost pressures, only by raising prices. However, according to Nike's remarks, the real price increase plan will not be launched until 2012.