What Does Nike Want to Do [POLO]3-8-2013 16:08:53
It was not the only thing that it was discovered by reporters that Nike is facing the serious inventory pressure as well at present. By the end of May 2012, Nike's inventory amounted to 3.35 billion dollars. There showed an increase of 23.39 percent if you made a comparison with the 2.715 billion dollar of last year's same period. When received the interview of the \"Daily Economic News\", MaGang who was the clothing independent commentator indicated that as for the market in China, the growth expectation of Nike was to keep the high growth each year. Do according to this plan, there must be the inventory problem. Reporters have learnt from the former analyst that Nike still needed to be tested by the market on whether it is able to make a successful rise on price. It mainly can be accounted that nowadays, there was an overall downturn sales market in sports brand. The weak economic declined the overall consumption level. \"If the price is too high, consumers may not be willing to pay the bill\". The data of the fourth quarter showed that in the Chinese market, Nike's sales revenue appeared the downward trend. In this quarter, the total product revenue was 667 million dollars including its greater China's footwear, clothing and accessories. It decreased 3.89 percent when a comparison was made. Lining was a domestic brand, and it also has said after it published the annual report last year. The expected cost is going to rise twenty percent because of the impact from the increased wages and raw materials. There will be a double-digit increase on the product's price. Being the first-line brands' leader enterprise, however, it is uncertain that whether the rise in price of Nike is going to set off a new round of price surge or not. It was said by the above analyst of the apparel industry that whether other sports clothing brands will follow the trend of price increase, yet it is still difficult to judge. It was learnt by reporters that after 2008, there was a high-speed expansion of the sports brands. The homogenization competition is increasingly brutal, so the second-line brands are facing a lot of pressures. When received the interview, the first textile web editor called Wang Qianjin said that in recent two years, the garment enterprise's operating environment experienced the \"drastic change\" because of the changes of labor costs, rising raw materials prices as well as changes in the trading environment. \"Generally speaking, consumers are not very sensitive when some high-grade brands' prices increase, such as Nike\". \"After the industry reshuffle, Nike, Adidas and other brands have opened a certain distance between low-standard market sports brands\". \"If low-end market sports brands want to increase their prices, however, they would like to be much more careful\". \"The reason is that this may cause the loss of consumers\", said the above analyst.


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