Whilst a most people are dreading the 2012 for fear of a Mayan-predicted apocalypse, football boots fans now have something else to be terrified of; yet another price hike.
Speaking at an annual forecast presentation, Puma Chief Executive Jochen Zeitz warned that Puma would be forced to raise their prices by a small margin at some point in the coming financial year.
Compared to a fruitful 2011 for Puma, Zeitz said that the rising cost of materials such as cotton meant net profit margins were becoming slimmer, and the German brand would ‘definitely’ be raising it’s prices in 2012 – before ominously adding ‘maybe sooner’.
This news from Puma comes on the back of Nike and adidas making similar announcements at their forecast conferences, anticipating that the rising cost of materials will narrow their margins and force them to raise the cost of their products.
Whilst football boots weren’t specifically mentioned at the conference, it’s fair to say that they’ll be included in any price increase, simply due to the fact they take at least 3 or 4 different materials to put together.
All this comes just a month after adidas pushed the adiZero from £120 to £135, the adiPure from £100 to £120 and the Predator_X from £135 to £150, and Puma pushed the newest v1.10 up to £135 from £120.
The good news comes in the form of target-surpassing 4th Quarter results for all the companies, with many analysts declaring that the World’s 3 Biggest sportswear companies have officially ‘overcome the financial crisis’.
Meaning that even if there’s some pain in the short term, Nike, adidas & Puma fans can look forward to their favourite brands continuing to develop new products, ads and sponsor players – generally keeping business as usual.
It’s obviously bad news for any football boots fan, but here’s hoping the impending price increases are kept to a minimum, rather than the 10%+ jumps we’ve seen in the last couple of months.