Nike Company Did Not Increase Its Price Blindly
We can learn from the report that shoes and clothes' price will be increased to five to ten percent. This change mainly because the continuous rising of raw materials and transportation. It was not a blind increase of Nike on price, the reason is that nowadays, there are pressures on the cost and the inventory. Without doubt, Nike did not raise its product price for the first time.
About the cost pressure of the first-line sports brands,
it may be still ultimately passed to the terminal retail market. It was reported by the "Wall Street" that Nike will increase its shoes and clothes' price to five to ten percent. This policy is going to be inspected by Nike in this year's autumn when it is going to launch its most expensive sports shoes (it is estimated to be sold at the price of 315 dollar) .Yesterday (August 21), it was told by an apparel industry analyst to the "Daily Economic News" that Nike's raw material and transportation cost will continuously increase in the recent two years. This action brings pressure to its profit growth. This time's objective of price growth maybe is to improve the margin of profit. Whether this practice will set off a wave of the price increase, it remains to be seen.According to the "Street Wall Journal", Nike's headquarter spokesman Mary Remuzzi said that Nike did not increase its price blindly. "We always trying our best to look for taking new innovations as well as product to realize the product series' ascension". Reporters of "Daily Economic News" have called the relevant public relations department of Nike in China. But at the end of the time to distribute the news dispatch, they did not contact the relevant person in charge.This was not the first time we heard the news that Nike will raise its products' price. In March last year, MaryRemuzzi had said that in the spring of 2012, Nike will raise the price on a global scale aimed at its shoes and clothes products. Its purpose was to in response to the rising costs in oil, cotton and transportation. The above apparel industry analyst told reporters that in recent two years, as a matter of fact, Nike's profit margin showed the year-on-year decline for several consecutive quarters. There was an unceasing increase on costs of raw material and transportation, its profit growth has experienced lots of pressures."Compared with selling prices, however, I held the opinion that the costs of raw materials were lower". On some aspects, such as labor costs, marketing costs and research and development costs have more reflected the growth on costs. It was an obvious thing that in order to enhance the profit margin, it was Nike's duty to handle the higher cost pressure of Nike this year. When looked up Nike's earnings paper, reporters found that its fourth-quarter's net income was 549 million dollars, and compared to the same period of last year's 594 million dollars, if fell 7.6 percent. It was once said by the company that the decline of earnings was primarily due to the decline of the profit margin. What's more; Nike brand's relevant expenses have been added as well. In this way, a wide range of revenue growth has been covered. Normal 0 7.8 Å 0 2 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:nh<; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}
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