Shoemaking Costs Skyrocketed &Nbsp; Sports Shoe Companies Were "Hurt".

On March 24th, the sharp rise in raw material costs and freight rates has brought pressure on many sporting goods companies.

Nike's latest third quarter earnings report said revenue grew by 5.2% in the quarter, but the gross profit margin of the company was poor due to rising oil, cotton prices, labor costs and freight rates.

Nike executives say easing the rising

Li Ning Co said that due to the impact of wages and raw material costs, the cost is expected to increase by 20% this year, and the price of products will increase by two digits.

Zhang Zhiyong, chief executive of the company, said that the cost of wages this year accounted for 7.5%-8% of the group's total income, which remained the same level as last year, and the wage cost is still controllable.

But now that the price of raw materials has risen sharply, the price of cotton has doubled, and the company can only lock in raw material prices in the next 8 months. He expects that the cost will rise by 20% this year.

In addition to the impact of cotton prices, shoemaking enterprises have to deal with the problem of rising prices of major raw materials, petroleum and rubber.

Guo Lian securities has made a prediction in an investment report, "the price of natural rubber will continue to rise this year".

International oil prices have been operating at a high level.

Companies such as Anta, 361 degree and so on, who have released earnings or ordering data, have consistently mentioned "raising the sales price of footwear products", with an average increase of about 10%.

Insiders pointed out that, in the face of rising prices of raw materials, "only deep training of internal strength, tapping potential and increasing efficiency, improving product value added, optimizing channel construction, shoe enterprises can digest the adverse factors of raw material price rise and survive healthily."

In order to raise the price of products, many enterprises try to find new breakthroughs in technological innovation.

Many shoe enterprises have set up R & D centers, with technical support, and the price of products will rise naturally.

Therefore, shoe enterprises can not passively seek low-cost procurement, can only enhance the core competitiveness of enterprises, because internal factors are the internal basis for the change and development of things, and the source and driving force of the movement of things, which stipulates the basic trend of the movement and development of things.

Huicong shoe net reporter visited several sports shoes enterprises in Quanzhou, found that in addition to the cost of raw materials, footwear manufacturers are also facing the adverse factors of rising labor costs.

The labor cost has risen by more than 10% this year. The shortage of workers has led to the extension of the product production cycle, resulting in the payment of some liquidated damages, not only eating up the meager profits, but also losing some of the cost.

This means that the new round of industrial integration and upgrading will be opened.

In this regard, the industry put forward several suggestions.

First of all, we need to increase our independent innovation efforts, speed up technological pformation and innovation, actively introduce and cultivate high-quality technological innovation talents, guide enterprises to pform key technologies and improve manufacturing level by using new and high technology and modern practical technology; secondly, we should implement the strategy of famous brand driving to improve the quality and grade of products.

We should strengthen environmental protection, promote the sustainable and healthy development of leather footwear industry, and gradually eliminate backward technologies which seriously pollute the environment. Finally, enterprises should concentrate their efforts on cultivating core customers and R & D core products, and take market segments, for example, through technological innovation, product development, and focus on some valuable areas.

From this we can conclude that sports shoes enterprises should pay more attention to quality as the starting point, and combine the actual development of the market with the combination of points and surfaces, constantly bring forth the new and bring forth the new, and maximize the interests of consumers.

Make the product quality and service system more perfect, and constantly establish their own brand image.