Domestic Shoe Brand Two Or Three Line Cities Actively Expand

　　我們認為耐克當前在中國的定價策略令業務無法打入二三線城市，國內品牌卻在這些城市積極擴張。在本報告中，我們考慮耐克會否針對二三線城市推出價位較低的鞋類產品，以及該舉措對中國運動服飾業的潛在影響。

   　　 獨有模型評估消化成本降幅的能力。

After discussing with manufacturers, we created a unique value chain model to examine the ability of the value chain to absorb cost.

Our conclusion is that Nike has the ability to set the price of footwear at a competitive 300 yuan / double.

We also cited two examples of successful penetration of both companies into high-end and low-end markets.

    　　短期影響：國產品牌中平均售價偏高者或將受最大影響。

We believe that if Nike decides to sell low priced products in China, the average high priced domestic brands, such as Kappa and Lining, will be most affected in the short term, because some consumers in the two or three tier cities may choose Nike instead.

    　　中長期影響：國產中小品牌恐遭打擊。

We believe that if Nike can successfully penetrate into the two or three tier cities, some domestic brands with general brand image will be squeezed out of the market.

We believe that the annual sales budget of 350 million -5 billion of small and medium-sized brands is unlikely to compete with Nike, Lining and Anta in the whole country (these companies spend more than 1 billion yuan a year in marketing costs).

Although we may suffer a heavy blow in the short term, we believe that the domestic brands with considerable marketing budget should be able to resist Nike, which is "the lowest" market. Anta is still our first choice in the industry.