The greater impact of Nike "center of gravity down"

Early May of this year, Adidas announced first quarter results, showing greater China sales fell 15%. This means that, on the one hand, originally known international brands for these first-line market has gradually become saturated; the other hand, they must be adjusted as soon as possible sales channels and product portfolio to a lower nike air max 24-7 consumption level reached the second and third tier cities, where instead of waiting for the natural increase in consumer spending.

UBS had before the second and third tier cities in mainland China, the price of footwear products conducted research and found that 170 to 250 range of footwear products, both to protect the company profits, but also make the local consumer acceptance, is the footwear the "perfect price" range. And when to spend 50 yuan for consumers will be able to buy Nike shoes, when domestic brands will go from here? Of course, due to the positioning of each brand and price are different, can not be generalized, Nike price, the specific impact of which will be bigger brand?

It seems some people in the industry, if Nike decided to lower the price of products sold in China, the average selling price is high, such as Li Ning and other domestic brands will bear the brunt of the short term are the most affected, because the second and third tier cities, some consumers may "switch" Nike.

It is worth noting that over the past few years, Li Ning is constantly raised the price, and now the average price of its footwear products are 300 yuan. A recent order will be displayed, Li Ning in 2010, three quarters of the price and footwear orders rose 11%. In addition, trends in the hands of the Chinese brand shoes KAPPA average of 370 yuan.

UBS Securities researcher Liangyu Chang said, "Nike cheap shoes on the expected impact of these brands the most obvious." He believes that when the domestic sports brand's marketing budget will be to determine the impact of this wave in their ability to hold on to an important factor. Some companies with limited marketing resources, is likely to be eliminated in this encounter.

However, Nike also has to enter the secondary and tertiary markets its own restrictions factors. Some domestic brand dealers, said, "is currently Deputy Anta, Li Ning and other brands of profit higher than the general agent of Nike to about 5 percentage points. For most small and medium-scale dealers, the same input, they would rather Agents more profitable domestic brands. "

Nike currently a distributor such as Belle, and do not necessarily have the market penetration to the second and third grade experience and strength.

It appears that Nike wants into China's secondary and tertiary markets, with the long-term need to take "second and third tier" of Anta, Pick grab the market, you need to do more than simple product launch.

Some industry vendors are also pointed out that if Nike can successfully penetrate the second and third tier cities, part of the brand image of domestic brands in general may be out of the market. In addition, the annual marketing budget of 3.5 billion -5 billion of medium and small brands in the country is unlikely with Nike, Li Ning, the nike air max 2010 companies compete. Despite the short term may hit hard, with a substantial marketing budget should be able to withstand the domestic brands, "reached the" low-end market, Nike.