Nike Attacks Chinese Sports Apparel Stocks At Low Prices

In recent years, PEAK sports actively signed a contract with NBA players to build its brand value. On Wednesday, 5 NBA spokesmen were invited to hold the opening ceremony of the China bank in Beijing to display the new sneakers. The 5 players will visit 18 cities in the mainland in the next 1 months to publicize the group brand. Xu Zhihua, the first executive officer of PEAK, pointed out that Chinese people love to watch basketball, especially good NBA.. At the same time, the United States has 3.6 pairs of sneakers per capita, but China has less than one person per capita, so the growth potential is enormous.

Xu Zhihua stressed that signing NBA spokesmen is to attract people to buy their brand products by raising brand grades. In fact, sales of leisure products are more than basketball products.

If Nike pushes low price strategy, it will do more harm than good.

Market rumors that Nike (NIKE) will launch low-priced sneakers to attack the two or three tier cities in the mainland. Xu Zhihua believes that if Nike changes its brand positioning, it will do more harm than good. It is unlikely that it will do so. Instead, it may launch individual styles.

He also stressed that Nike had lowered prices last year, but did not affect PEAK's sales.

At present, the price earnings ratio of PEAK is about 12 times that of Xu Zhihua. This is not the same as growth, and the actual p / E ratio should be 17 times to 18 times, or even 20 times.

At present, the proportion of group cities is 5%.

He called the group's growth rate faster than the market average of 15% to 20% per year.

Nike attacks Chinese sports apparel stocks at low prices

In late June, Nike came to enter the mainland China's two or three line market with cheap products. UBS expects Nike to launch low-priced shoes in China in the second quarter of 2011, the launch date ahead of the bank's original forecast for the second half of 2011.

Affected by this news, from June 22nd to July 6th, Lining, Anta, China trend and many other seed sportswear companies fell more than 10% in two weeks.