With regard to the first-line brands of sports, it is likely to be transferred to the terminal retail market as well. According to the "Wall Street", it can be learnt by us that the price of Nike's shoes as well as clothes is going to be escalated five to ten percent. In the autumn of this year, Nike's most expensive sports shoes will be sold and it is going to be sold at 315 dollar, and it is also the time for this policy to accept inspection.
An apparel industry analyst reported to the "Daily Economic News" on Yesterday (August 21) that in recent two years, there is an increasingly increase on the raw material and transportation of Nike. This action brings pressure to its profit growth. The purpose of this time's price increase should be increased the profit margin. Time is needed to be observed on whether this practice is going to raised a round of price tide.
On the basis of the"Cheap Air Jordans Retro",Mary Remuzzi who was the headquarter spokesman of Nike indicated that the rise of Nike in price was not blind. "We are always looking for ways to take advantage of new innovations and product performance to achieve the improvement of the product line". Reporters of "Daily Economic News" have called the relevant public relations department of Nike in China. Related people in charge, however, has not been contacted at the press time.
It was not the first time for us to hear the news that there will be increase on the price of Nike's products. It has been indicated by MaryRemuzzi in last year's March that in 2012 spring, Nike is going to make an increase on its shoes and clothes products worldwide. Its purpose was to in response to the rising costs in oil, cotton and transportation. Reporters have learnt from the apparel industry analyst above that actually in recent two years, the profit margin of Nike has continuously declined for a few quarters compared to other years. 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". The rising price reflected more on labor costs, marketing costs, research and development costs and other aspects. 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. In additionComputer Technology Articles, it took the related expenses of Nike brand into consideration. The wide range of revenue increase can not been seen through this way.