Brand premium shoe dealers feel pressure

A certain brand of Xi'an agent Wang Xiangyi of Jinjiang brand in the spring and summer 2011 brand meeting, as usual, came to Jinjiang Corporation to see the goods, orders. However, the price of shoes at the trade fair made him feel pressure. The average price of each pair of shoes was 3 to 5 yuan more.

Wang Xiang complained that the wholesale price of a pair of shoes was 3 to 5 yuan more expensive, which means that after the shoes were circulated to the market, their price would rise as high as 6% to 10%, coupled with the rising storefront and The cost of labor is only a small profit. If things do not work well, the problem of inventory will become more severe. How about market development?

Actually, there are plenty of brand agents like Wang Xiangyi who are feeling the pressure. They all share a common character. Most of these agents are operating small and medium-sized brands that are just starting up or are developing.

Originally in the market, these brands are not well-known, and product differentiation is not obvious. Isn't today's price increase to make the market even more difficult to exploit? However, as a head office, this can only be a reluctant move.

According to Li Yong, executive director of Feike International Holdings Co., Ltd., affected by the fluctuation of international raw material prices, since the beginning of this year, rubber soles were the first to raise prices, followed by shoemakers including leather, microfiber leather, and mesh fabrics. Materials and accessories have risen to varying degrees in succession. In 779, the cost of shoe materials rose by as much as 10% to 15% this year. This does not include increasing labor costs.

As of now, workers' wages have risen by almost 20%. Ding Ruizhan, general manager of Ruizhan Shoes Co., Ltd., said that on the one hand, the cost of shoe materials and labor have been steadily rising. On the other hand, due to the fact that factories and brands are still at a stage of development, they cannot form economies of scale and reduce costs. In this way, small and medium brands have to be forced to Raise the price to meet the need for survival.

Of course, not only these small and medium-sized brands have risen.

Recently, Xtep International Holdings announced the relevant data of the Xtep brand fourth-quarter ordering meeting. According to the data, among the various product lines, the amount of orders for key series mainly consisting of running shoes has grown significantly, up 43% year-on-year, of which not only the number has increased by 30%, but also the overall average selling price has increased by 10%.

In fact, according to the 2009 financial report released by ANTA this year, the average selling price of footwear and apparel products for Anta increased by 6.8% and 6.3% respectively year-on-year. According to the market survey, 361 degrees, Hongxing Erke, Peake and others have all increased the selling price to some extent in the market.