Shoe Companies Continue To Face Cost Pressures &Nbsp, Or Pfer Some Of Their Costs To Consumers.

In January 13th, most of the consumer goods industry faced the problem of rising costs.

Operators have developed more lightweight running shoes, adjustable footwear that can relieve joint pressure, and provide customized footwear to enable consumers to pay a little more money for shoes. The result is that the pricing ability of shoe factories at the end of last year is improved.

Anderson, who tracks the sports shoes market for DADavidson, said: "new products will be listed at a higher price."

Anderson tracks five of the nine sneakers. The average selling price of men's running shoes last December was higher than that of the previous month.

The average selling price of UnderArmour products increased by 4%; the average price of Nike and NewBalance increased by 1.9% and 1.4% respectively; the nine brands increased by an average of 1%.

Many manufacturers passed on the increased cost to consumers in the second half of last year.

Blair, chief financial officer of Nike, told analysts last June that the gross profit margin would fall by half a percentage point in the first quarter of fiscal year to August, but the actual situation was that gross margin rose from 46.2% a year ago to 47%.

Nike then warned of "increased input costs", but the gross profit margin of the company in the second quarter of fiscal year up to November was again higher than that of a year ago.

Nike said that the main reason for the increase in gross margin was the increase in sales of full price goods and the decrease in discount products.

Nike is not the only shoe factory that shows its pricing power. Sketchers also announced that the gross profit margin increased by three percentage points in the third quarter compared with a year ago, while K-Swiss's gross profit in the third quarter also increased.

Like Nike Ju, sales of Sketchers and K-Swiss have been increased and discounts have been reduced.

Besides price increases, shoe factories are also more capable of managing increased costs, such as pportation costs, which also help to raise gross margins.

CMF consulting company logistics expert, he knows that even if the cost of raw materials and parts pportation is included in the factory, the freight will only account for 3% to 6% of the wholesale price of each shoe, that is, a $50 shoe with less than $3 in shipping cost.

But shoe makers do face cost pressures, and analysts say the footwear production cycle will continue to feel that cotton prices will rise by 90% in the next six months.