Adidas sells rugby jersey for double in New Zealand
German sportswear company adidas has refused to change its stance on the price of the All Blacks rugby jersey in New Zealand, despite pressure from local retailers to lower it. Local media recently discovered that the new strip can be bought overseas for around half the NZ$220 price that it is being sold at in New Zealand.
Adidas has been in negotiations with New Zealand retailer Rebel Sport today, which is taking a tough stance over the difference in price of the new All Blacks jersey compared with retailers overseas.
General manger of Rebel Sport Rod Duke said that the company is “pretty determined” that the price has to come down. “I would prefer not to give them any ultimatum,” he said.
“I would prefer them to have assessed the situation, assessed what damage it may already have done, and may do in the future, to their brand, and to bring that price reasonably close to the price on offer from overseas.”
From Rebel Sport’s perspective, a reasonably close price would be within 10-15% of the price of the jerseys overseas, once you take into account GST, currency and freight. That would bring the player jersey down to $150.
But adidas released a statement tonight saying rugby fans know they are supporting New Zealand rugby when they buy the replica jersey, and that the price reflects that.
New Zealand adidas manager David Huggett said while the company understood concerns it was sticking by its recommended retail price. “The price of the All Blacks jersey is comparable to other licensed replica jerseys being sold in New Zealand. While we provide guidance on a recommend retail price, it's guidance only and we welcome a competitive retail market.”
Mr Hugget maintained the price of the All Blacks jersey has not changed since May 2009, with the exception of the GST increase last year. “We're comfortable our price to the local retail trade is a reasonable one,” he said.
Mr Hugget said in the statement that “retailers are at liberty to price the product to their customers as they see fit.”
Adidas recommends the final price for retailers and the cost of the jersey in New Zealand also includes 15% GST and a 10% import duty on its cost price.
