Nike Has To Think Deeply About Entering The Two Or Three Line Market At A Low Price.
Though convinced
Nike
The low price strategy is inevitable, but Ma Gang believes that Nike will have more consideration before playing this card, that is, whether the price reduction will lead to the damage of Nike's brand, so that it will lose a group of the most loyal users.
"For example, a middle class in a city walks out of the door and finds that shoes on the streets are brand names. Will he persist in his choice?"
Liang Yuchang also believes that Nike's low price strategy faces at least three obstacles.
First, Nike suppliers must produce cheaper shoes while maintaining profitability. The two is how to mobilize Nike dealers.
Two or three line
The enthusiasm of the city to set up a distribution shop is three: how to launch low-priced products without affecting its high-end image in China.
He thinks price and
brand
It is not natural to stand on the opposite side.
Just like in Shanghai's best buy, there are 199 yuan NOKIA low end machines on the shelves, but the top white-collar workers in Shanghai are also willing to spend more than 6000 yuan to buy the latest NOKIA mobile phones.
It depends on whether the company has the ability to meet the needs of different segments of the market with a diversified product mix.
In Ma Gang's view, Nike headquarters "timely" released the low price of the wind, hoping to explore the consumer group and all aspects of the acceptance of partners.
If all aspects of the conflict are relatively high, Nike will intervene in the low price market through the way of brand combination, so that the two brands of CONVERSE and UMBRO will be low price pioneers, and Nike's main brand will continue to stick to the high-end.
In addition, if Nike is determined to enter the two or three tier market, in addition to adjusting the product line, it is necessary to make some changes in the existing distribution channels, so that the channel can be flat.
For example, the Nike outlets in the two or three tier market are generally purchased from the Nike distributors in the primary market, so the cost of the goods in the two or three tier market is higher, which is the main reason for the limited profitability of the two or three tier Nike market.
Domestic and foreign capital encounter
Before UBS had conducted research on the price of footwear products in the two or three cities of mainland China, it was found that footwear products in the 170~250 yuan range could not only protect the profits of manufacturers, but also allow local consumers to accept them, which is the "perfect price" range of footwear products.
And when consumers spend more than 50 yuan to buy Nike shoes, where will the domestic brands go?
Especially in the past few years, Lining is constantly raising the price, and now the average selling price of its footwear products is also around 300 yuan.
A recent order will show that Lining's footwear orders in the 3 quarter of 2010 increased by 11%.
In addition, the average price of KAPPA brand shoes in China's trend is around 370 yuan.
Liang Yuchang said that the impact of Nike's low-priced shoes on such brands is the most obvious.
He believes that the marketing budget of domestic sports brands will be an important factor in deciding whether they can survive in this wave.
Some companies with limited marketing resources are likely to be eliminated in this encounter.
However, Nike's entry into the two or three tier market also has its own handicap.
A dealer told reporters that at present, the profit margin of agents such as Anta and Lining is generally about 5 percentage points higher than that of agent Nike.
For the majority of small and medium-sized distributors, they would prefer to profit from the same domestic brands.
And Nike's current distributor, such as BELLE, does not necessarily have the experience and strength to penetrate into the two or three tier market.
If Nike wants to enter China's two or three tier market, it needs to do much more than just launch products.
- Related reading
Starlings Launched Thousands Of Stores To Seize Tickets Through Modest Fans.
|- Shoe Express | Air Jordan 34 Shoes "Bred" Black And Red Color Exposure, Salute Classic
- Shoe Express | Air Max Plus Shoes New Cool Black Warriors Color Debut, Temperament Extraordinary
- Innovation and invention | The Demand For Functional Textiles Is On The Rise.
- Fashion posters | Splendid Hua Zhang - 2019 Cheongsam Night Blooming Brilliance
- Fabric accessories | China Textile City: Autumn And Winter Women'S Jacquard Fabrics Favored By Many
- Bullshit | Fashionable Women'S Wear, The Most Beautiful National Day Outing, Let You Go Away.
- Instant news | Celebrate The Whole Nation! Fashion And The Poetry And Distance You Look For!
- Shoe Express | "Air" Max Tailwind 4 Shoes "Tokyo" Ma Caron Color Is Coming Soon.
- Shoe Express | Kyrie 5 X "Shoes" Brand New "Pineapple House" Color Matching Attack
- Local hotspot | Lele Tea First Entered Into Jing Feng KINGMO
- Nike Adjusts Its Strategy In China And Enters The Two Or Three Line Market At A Low Price.
- Grey Cloth Key Enterprises Quoted Price (7.22)
- Quotation For Key Enterprises Of Raw Materials (7.22)
- 2010/11 Australia Fashion Week Stolen&Nbsp; Girlfriends&Nbsp; Club Release
- Xinjiang Businessmen Invest In Meat And Potatoes
- Taiwan Enterprises Rely On Innovation And Change To Counter The Mainland Market.
- Cotton Production Standard Will Be Approved.
- Guangzhou Metropolis Shoe City Holds Cycling Tour
- Understand The Participation Of &Nbsp;
- 2010/11Seventh&Nbsp; Wonderland&Nbsp; Australian Fashion Week Conference.