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    Nike Wants To Enter The Two Or Three Line Market With Cheap Products.

    2010/8/4 18:09:00 65

    Nike Adidas Lining

    Not long ago,

    Nike

    The company released the wind to help.

    low price

    Products enter mainland China

    Two or three line

    Market.

    The news immediately caused a great shock in the industry.

    The most direct response is the share price of domestic listed companies.

    Until last week, the share price of Chinese sportswear manufacturers listed in Hong Kong began to pick up steadily.

    Prior to this, two consecutive weeks of 10%~15% decline, the development of domestic brands is full of uncertainty.

    On the one hand, the domestic powerful brands are sounding the horn of the first tier cities. On the other hand, the two giants of Nike and Adidas coincidentally fought the idea of the two or three line market.

    When the original price advantage may be conquered, how should the domestic sports brand enter and retreat?


    Last month, at Nike's 2010 fiscal year conference call, Nike brand President Charlie Denson (Charlie Denson) said that the company did plan to enter China's second tier, three line or even four line cities, and will launch the NIKE series of different low price products at the same time, consider buying or introducing some other brands.

    Previously, Nike has just announced a "Five Year Plan". It is estimated that the revenue of Greater China will grow by more than 10% annually.

    Such an industry as a radical development plan is considered to be the symbol of Nike's upcoming two or three line market in China.


    In fact, Adidas, after the crisis of last year's Olympic inventory crisis, has taken a more substantive action on the two or three tier market.

    "Before September 2010, all the Adidas teams that have been put in various regional markets to work closely with distributors will be in place."

    Du Bairui (Christophe Bezu), the new managing director of Greater China in January 2010 of Adidas group, said in an exclusive interview with the domestic media that Adidas would be more concerned about the potential market of the two or three tier cities in the next 3 to 5 years than the expansion of the first tier cities.


    It is understood that

    Adidas

    In the past, most of these operations were handed over to distributors.

    Now, Du Bairui decided to let Adidas's team control these markets in person.

    At the same time, the management method needs to be "more Chinese". In his understanding, Adidas's localization is not only faster and deeper, but also needs more dimensions: for example, recruiting more local staff, interacting with the government more closely, sending more managers to actively communicate with local distributors.


    Local brand

    Lining

    ,

    Anta

    While consolidating the two or three tier city market, the first tier cities that belonged to the foreign investment front were sent to Wangfujing and the flagship stores of Lining and Anta in Beijing.

    This is exactly one of the reasons why Du Bairui continues to open shop in China's three or four line cities: the advantages of the first tier cities are being diluted. If there is no expansion, Adidas will lose the opportunity to enter the two or three line market.

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