Nike's Revenue In 2009 Has Been Overtaken By Lining.

Nike headquarters announced its revenue in the 2010 fiscal year (up to May 31st this year), which amounted to US $19 billion, of which the Greater China income was $1 billion 700 million, unchanged from last year. According to the data released by Nike, 2009 Nike The mainland's revenue is about 8 billion ~90 billion yuan, while in 2009 Lining (02331.HK) earned 8 billion 387 million yuan or surpassed Nike.

Insiders pointed out that if Nike wants to achieve rapid growth in China, it will become a required course to speed up the layout of the two or three line market and even the county level market.

Nike released the 2010 quarter of fiscal year fourth quarter (3~5 month) revenue figures show that the Greater China region revenue of $464 million, an increase of 12% over the same period last year. The income of footwear products increased by 14% to 246 million US dollars. Clothing products Revenue grew 10% to 193 million dollars; sports equipment revenue increased 17% to 25 million dollars; pre tax profit (EBIT) was $187 million, an increase of 20% over the same period last year.

According to the data released by Nike, the first financial daily reported that from December 2008 to November 2009, the income of Nike Greater China was about 1 billion 650 million dollars. Analysts said that the proportion of mainland China's revenue in Nike Greater China was 70%~80%, so that in December 2008, the revenue of mainland China in November ~2009 was between 8 billion ~90 billion yuan, compared with that of China's local sporting goods Li Ning Co. In 2009, Li Ning Co earned 8 billion 387 million yuan.

Nike also announced orders for the second half of this year, and Nike will be ready between June and November this year. Deliver goods The order amount was US $8 billion 800 million, an increase of 7% over the same period, with the increase in orders in the Greater China region by 19% over the same period last year, excluding the exchange rate factor, an increase of 16% over the same period last year. Ma Gang, an industry insider, said that the growth of Nike's orders was basically the same as that of domestic enterprises. Previously, Hongxing Erke, who listed in Singapore, announced that this year's autumn and winter product orders will be 504 million yuan, an increase of 14.5% compared with the same period last year, while Lining's fourth quarter order will increase by 20.3% over the same period last year.

Analyst Chen Shixin believes that if Nike wants to achieve sustained and rapid growth in the Chinese market, it must adjust its strategy and speed up its entry into the domestic two or three line market and even the county level market. Chen Shixin said that in the county-level cities such as Zhangping, Fujian, there are already Nike stores, and the domestic two or three line or even county-level cities have considerable consumption power, but the profit margins of these stores are relatively large.

According to research data provided by Chen Shixin, at present, in China's two or three tier cities, the market's most acceptable footwear price is between 170 yuan ~250 yuan, while Nike sells shoes in China in the range of 400 yuan ~1000 yuan, and the price difference of 150 yuan or more restricts Nike's entry into the market. While the domestic sporting goods enterprises in the domestic two or three line market are most aggressive, their pricing is mostly in the range of 170 yuan ~250 yuan. If Nike can formulate price strategies and product strategies that are close to China's two or three line market consumption level, rapid growth will not be far away.