Nike And Adidas Reduce Commodity Prices And Enter China's Low-End Market.

July 15th, according to a recent report, international brand Nike and Adidas Considering reducing commodity Price Enter the low-end market in China. Nike plans to expand sales to $40% to $27 billion by 2015, and Adidas plans to sell more stores in two or three tier cities at lower prices. In the 9~11 month of 2009, sales in Nike Greater China decreased by 3% compared with the same period last year, while Adidas, another sporting goods giant, dropped 7% in the third quarter of last year after a negative growth in the last two quarters.

In the face of China's huge market cake, the international movement brand Obviously, it will not be easy to let go. With the arrival of the peak season of sporting goods sales, the discount activities of international sports brands are beginning to prevail, and the sharp reduction in prices has stimulated a lot. Consumer From this, we can see that international brands have begun to shake the lever of price.

300 yuan Nike shoes coming

At present, the "perfect price" of footwear in the two or three tier cities is between 170-250 yuan, while Nike (as the first tier international sports brand in the market share) sells shoes in China at a price of 400-1000 yuan. The difference between the 150 yuan is the main reason that hinders their business from entering the two or three line market. By contrast, at present, China is actively focusing on the development of several major domestic brands in the two or three tier cities, and its pricing basically fluctuated around 50-70 yuan in the range of 170-250 yuan.

However, if Nike achieves the lowest price of footwear products by 300 yuan, even though it is still slightly higher than the "perfect price", the idea of "buying more than 50 yuan for a pair of Nike shoes" is likely to drive the consumers who buy the brands of high-end sports shoes such as Lining, Anta and XTEP to take the lead in the shift.

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. Part of the brand image of the general domestic brands or will be squeezed out of the market. The annual marketing budget of 350 million -5 billion 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). Despite a heavy blow in the short term, domestic brands with considerable marketing budget should be able to resist Nike, which is "low", and Anta is the first choice.

Inside sports brand is still "momentum like rainbow".

But in the two or three tier cities, young people of this age group will still be more influenced by the people around them. Their pursuit of individuality will still leave the impression of traditional consumption concept. At the same time, because of the relatively limited consumption ability, how to get them to pursue their own personality and a better life at a lower cost will be the main direction of efforts to win the brands recognized by some consumers.

At present Anta The main sales force of domestic brands represented by XTEP is still in the two or three line market. "In some small cities in China, you only have to see a Nike store, and there will be 2-3 Anta and XTEP around." Hua Jie consulting clothing industry analyst Liang Venlo believes that the two or three line city is the main battlefield of domestic brands, and is the cornerstone of enterprises. If you feel that the international brand has the meaning of channel sinking, the price and marketing resistance of domestic brands will be quite fierce. International brands may not be cheap enough to compete.

In addition, the domestic sports brand is still "momentum like rainbow" at this stage. According to statistics, in the 4 quarter order meeting of the major sports brands that have ended in 2010, the average order growth of XTEP international increased by 23%, the Chinese trend ranked second, reached 20%, Anta ranked third, reached 19%, Lining ranked fourth, and the growth rate also had two figures.

"The four sports apparel suppliers received a common trend of growth in the fourth quarter of 2010," he said. Dafu securities research believes that this phenomenon shows that distributors continue to have confidence in the sales prospects of domestic sports apparel.

It is also for this reason that Anta, "PEAK," and "bravery", such as "PEAK" and "bravery", are likely to become more and more sophisticated in online shopping, while the international brand sales channels continue to sink.

In the long run, this kind of value proposition must be further refined, and more accurately lock consumers in a certain part of the two or three tier cities with stronger commonalities. In this way, the domestic brands can truly establish their niche market and share their own "cake" with the international brands.