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    Nike Hits Chinese Sports Shoes At Low Prices

    2010/8/2 15:24:00 40

    Nike PEAK Lining

    08, 3,

    Peak

    In recent years, sports have actively adopted

    NBA

    Players sign up to build them.

    brand

    On Wednesday, more than 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, chief executive of PEAK, pointed out that Chinese people love basketball, especially NBA.. At the same time, the US 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.


      

    Nike

    If pushing the 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

    A number of seed sportswear companies such as Anta, China trend and so on dropped more than 10% in two weeks.

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