Bad news for consumers as Adidas are set to raise their prices due to the rising cost of production. This has been revealed by Adidas in their 2021 fourth-quarter and full-year results.
Adidas to Increases Prices of All Products by 5-10 %
Current shirt prices on Adidas website
The German brand will raise their prices across all of their products by 5 to 10 percent this year to keep their finances the way they like them.
We expect replica kits to soon cost 95-100 Euro
Adidas have not announced how much more expensive specific their products will be, but fans of the Three Stripes will have to brace themselves to spend even more on every range of their products, from takedown models of boots and fan kits to player spec versions. For replica kits, we could see a price increase to 95-100 Euro.
The cost of materials such as cotton and nylon are expected to rise by 1-4% per year, while the cost of labor is on track to increase by 11-15% per year. In addition, rising fuel prices are driving up the cost of everything worldwide.
The increase in prices consumer will pay are one of the steps Adidas have decided to take in order to combat these rises, while moving some of their labor from China to Indonesia, Vietnam and Cambodia is another part of their plan to keep their pockets healthy.
The war that Putin is waging in Ukraine could cost Adidas up to €250 million by their own estimates as their sales in the affected countries and nearby areas will drop by about half, although their sneaker sales are set to grow by 11-13% overall.
Most would argue that the cost of their products is already too high, although complaints from consumers are unlikely to make Adidas change their minds.
In 2022, Adidas are calculating around 12 percent more sales to almost 24 billion euros. Group profits are expected to rise in parallel from 1.5 to 1.8 to 1.9 billion euros in the current year. Adidas’ operating profit still has not come back to pre-pandemic levels. In 2019, the company recorded an operating profit of 2.66 billion euros.
Do you think the upcoming price increases will reduce sales for Adidas? How much is too much to pay for a jersey? Let us know your thoughts on the matter.