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Lining Confirmed The Four Quarter Price Adjustment Or Lifting The Price Of Sports Brands.

2011/7/15 8:57:00 48

Lining Confirms The Four Quarter Price Adjustment Campaign Brand Price Surges


Lining (China) Sporting Goods Co., Ltd. (hereinafter referred to as "Li Ning Co")

The news of the fourth quarter product price rise was confirmed.




Its new product orders will end in the fourth quarter of 2011, and its footwear products will rise 7.8% in the fourth quarter and 17.9% in clothing.



Domestic sports brand

Orders for the fourth quarter of 2011 have been closed recently, including

Lining, Anta, XTEP, PEAK,

Among other brands, the price and price of shoes and clothing in the fourth quarter will rise by one to 20% in order to cope with the possible decline in profits caused by rising costs.


This is not

Domestic sports brand

The first collective price increase.

The price of sports brand products has risen by 10% to 20% this year, according to the data released at the beginning of the annual ordering and annual reports.


The core product prices of domestic sports brands are calculated from 200 to 300 yuan, and the consumers will spend 50 yuan on their shoes and clothing on average (double) on average.



Li Ning Co

Zhang Xiaoyan, director of external affairs and public relations director, said that the increase in price was partly due to the increase in the cost of product development and the increase in costs. On the other hand, it was caused by the industrial environment, such as the cost of raw materials, the cost of manpower and the increase in rental costs of commercial premises.


In the Li Ning Co's first half performance summary report, the group strengthened the management efficiency of the retail terminal and increased the proportion of self run shops, resulting in a faster rise in group rentals and human costs. On the other hand, the advertising marketing and promotion cost technology was relatively low last year. The group increased its brand investment this year, and the overall cost rate (including distribution costs and administrative expenses) increased by 7 percentage points over the same period last year. 31.8%.


In fact, in the 2010 earnings report, Lining has estimated the impact of rising costs.

In the 2010 fiscal year, its gross profit margin was 47.3%, the same as in 2009, and the gross profit margin in 2011 will be reduced by one percentage point.

At the same time, the financial report also mentioned that in 2011, the proportion of advertising sales promotion expenses planned by Lining would increase by about 2 percentage points.


The growth of brand promotion costs is also more than Lining's. Anta, PEAK and 31st degree have also sponsored different events to expand their influence.

Product added value competition is also increasingly fierce.


In July 7th, Lining released the "first half of 2011 operation and performance prediction and annual outlook" report released by Hongkong. It said that Li Ning Co, which persisted in brand promotion and was at the initial stage of active change, would reduce overall sales revenue by 5% in 2011.

At the same time, the company's profit margin will drop to around 6%~7% in 2011 due to the efforts to increase channel reform and speed up inventory clearance.

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