At present, most people's livelihood consumer goods companies are facing rising costs, but sports shoe manufacturers are one of the few companies that are able to raise their prices. With the rising cost of labor, cotton, transportation and petrochemical composite materials, they began to warn of profitability pressure in the middle of last year. The heavy shoe factory has passed some of the cost to consumers.
In addition to price increases, shoe factories are also better able to manage increased costs, such as transportation costs, but also help increase gross profit. According to Holloway, a logistics specialist at CMF consultancy, even if the cost of raw materials and parts is included between the factories, the freight rate will only account for 3% to 6% of the wholesale price of each shoe, that is, a $50 shoe. Less than 3 dollars.
However, shoe traders do face cost pressures. Analysts said that the footwear production cycle will continue to feel the power of 90% increase in cotton prices in the next six months.
In addition to price increases, shoe factories are also better able to manage increased costs, such as transportation costs, but also help increase gross profit. According to Holloway, a logistics specialist at CMF consultancy, even if the cost of raw materials and parts is included between the factories, the freight rate will only account for 3% to 6% of the wholesale price of each shoe, that is, a $50 shoe. Less than 3 dollars.
However, shoe traders do face cost pressures. Analysts said that the footwear production cycle will continue to feel the power of 90% increase in cotton prices in the next six months.
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