Sports Shoes Brand Camp Metamorphosis In Twenty Years (Four)

Nike's next stop - the two or three line city?

Recently, Nike The company said that in the next 5 years, the annual revenue of its emerging markets, including the Greater China region, will grow at around 10%. Although no strategic details have been revealed, the industry has predicted that the two or three tier cities will be the focus of Nike's next stage of development. If that is the case, it means that Nike will invade the domestic sports brand, especially the Jinjiang sports brand.

Is this feasible? At present, the price of Nike sneakers is often 500 yuan, while the price of your sports shoes is 1000 yuan. If you want to eat in the two or three tier cities, then Nike will have to cut prices.

UBS Securities has made a hypothetical analysis in a report recently: the domestic first tier city market has become saturated, the future market is mainly concentrated in two or three line cities, and Nike, Adidas and other international first-line brands have to maintain a relatively high growth rate and strong market competitiveness, so we must adjust the existing product price combinations. The "perfect price" of footwear products in the two or three tier cities is between 170 yuan and 250 yuan. Obviously, the current prices of Nike and Adidas are not suitable for the consumption level of the two or three tier cities. To enter, adjustment is necessary.

UBS further analyzed that under the premise of guaranteeing the profit of these brands and suppliers, Nike could make the lowest price 300 yuan, even though it was 50 yuan higher than the perfect price, but for consumers, "buy 50 yuan more than you can buy a pair of Nike", they will think "value for money".

However, Lining Zhang Zhiyong CEO of the company believes that there are two indicators for the final judgment of business, one is the share of the mind, that is, the brand value, and the other is the market share. The value of any brand will be converted in its market share. "If you make 200 yuan of products, you can gain market share and make 300 yuan or get market share, but that will also reduce your share of the brain. Because these two are not equal relations. "

That is to say, like Nike Such an international brand, if we want to make 300 yuan products to capture the two or three line market, then the most important thing to worry about is whether its other competitor, such as Lining, will take advantage of it and get the market share of its high price product. This is the most paradoxical point for Nike.