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Nike prices to rise on cost surge

Updated: 2012-08-27 10:27
( China Daily)

Nike prices to rise on cost surge
The foreign sportswear maker Nike Inc will increase the price of its shoes and apparel by 5 to 10 percent, Guangzhou Daily newspaper reported. As is known, Nike will introduce the most expensive sports shoes ever - the 10th generation LeBron basketball shoes - this autumn. They are expected to be sold for $315. Analysts said the rising cost of raw materials and transportation in the past two years has put great pressure on Nike's profitability. Its latest financial reports showed that its total sales in China, its second-largest market, for the fourth fiscal quarter ending on May 31 reached $667 million, falling 3.89 percent from the third fiscal quarter. Micro-bloggers are expressing different opinions on the price-hike move.

ZHUZHUYIN: A pair of Nike shoes would cost me half of my monthly salary.

CAIJINGZHOULAOSHI: The money is all spent on brand-building. Customers spend 2,000 yuan to buy a concept. What a fraudulent way it is to treat customers, especially the youth.

QIYEHE365: Nike products should enter the line of luxury products then.

AMBER20: I think the cost mainly refers to the spending on advertising front men and women.

LINGWEI-LEVENT: Those expensive shoes are designed for the second generation of the wealthy. For ordinary customers like me, let's buy the domestic brands with a discount offer.

WXLCULTURE: Even the big brands now cannot stand up to the pressure of increasing costs.

YUXIANSEN: I stopped buying Nike products last year because their products are too expensive and the quality fails to match their high prices.

CODING2000: Too much pressure from rising costs? With this price? If it is true, I think the reason is that Nike employees are enjoying quite high wages.

All the information is from Sina Weibo.

 
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