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 Posted: Tue 4:47, 20 Aug 2013 Post subject: The Continuous Decision that Has Been Made |
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The Continuous Decision that Has Been Made,[link widoczny dla zalogowanych]
With regard to the first-line brands of sports, it is likely to be transferred to the terminal retail market as well. 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) .
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. Because of this; pressure has been brought to its growth of profit. The purpose of this time's price increase should be increased the profit margin. Whether this practice will set off a wave of the price increase,[link widoczny dla zalogowanych], it remains to be seen.
According to the "Street Wall Journal",[link widoczny dla zalogowanych], 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". "Daily Economic News" reporters have called Nike in China's related PR department. But at the end of the time to distribute the news dispatch,[link widoczny dla zalogowanych], they did not contact the relevant person in charge.
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. In order to reply the oil, cotton and transportation's increasing price, this action has been made. 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. The reason was that because of the continuous increase on raw material and transportation costs, a lot of pressures have been brought to its profit growth.
"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,[link widoczny dla zalogowanych], it was Nike's duty to handle the higher cost pressure of Nike this year. It was found by reporters when they referred to the earnings paper of Nike that its net profit was 549 million dollars in the fourth quarter, and it fell 7.6 percent when we made a comparison with last year's same period that was 594 million dollars. 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,[link widoczny dla zalogowanych], a wide range of revenue growth has been covered.
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