Long-term position at the high-end brands, Nike and Adidas to bring premium products enough, and they gradually return to the process of brand, these products can become a premium price they waved a butcher’s knife advantage. In 2010, Nike released the 2009 fourth quarter earnings report showed that China Nike EBIT margin up to 40.3%, compared to the North American nike air max 90 market was only 24.2% EBIT margin. EBIT margin of 40.3%, to Nike, leaving sufficient room for downward movement.
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 margins typically higher than the agency Nike to about 5 percentage points. For most small and medium-scale dealers, the same input, they would rather Agents more profitable domestic brands. “
China Li Ning, Peak and so the expansion and development, but their ambitions far greater than in China, Li Ning has stores open to Hong Kong and even overseas market, Zhi-Hua Xu Olympic CEO, said the company will be in Los Angeles to establish R & D centers and sales company, become the Li Ning, the second base camp at the Nike camp in China’s sporting goods business.
Zhi-Hua Xu believes that the nike air max 24-7 brand impact for the second and third tier cities, it did not also feel the pressure most. “Price cuts have double the impact of this thing,although the low-cost means more sales, but high prices consumers can also enhance the brand impression in people’s minds, if the brand once set up, everything can be moreeffective. If the resistance grams introduced low-priced, it will subvert the entire value chain system, which will inevitably bring about the impact of values. “
Nike cheap route for a lot of people think it will affect high-end image of Nike, but there are many people in the industry that major brands Jieyou price level of 300 yuan isonly one of the People First grade products. Pursuit of high-end consumers can still choose the high price of Nike shoes, just as Nokia mobile phone, price from 199 to 6000 are,whether the consumer pay, depending on the company’s ability to use diverse product portfolio to meet different market segments needs.
2010 China’s nike air max 2009 sports shoe market is expected to reach 69 billion yuan by 2020, well-known brand sports shoes market may reach 297 billion yuan. Faced with such large pieces of cake, and foreign competition for sports brand will be staged at the storm.
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