Nike ADI Seized &Nbsp In The Chinese Market, And Local Brands Survived.

On the afternoon of September 22nd, in the afternoon of September 19th, when a handwritten price notice was attracted, a small group of customers walked into a family in Shenzhen.

The notice says, "the last day! All goods are half off to 45% off, sixty percent off, 55% off."

Just around the same floor of the shopping mall, another Lining retailer looks like a bird.

And the lights are bright.

A staff member at Lining store complained: "Nike and ADI's products are very good.

Their materials, soles and designs are much better than ours.

After several years of amazing expansion, Lining, China Trends and other local sports.

While China's local brands are struggling, foreign brands such as Nike and Adidas are gaining more and more market share in China with their huge investment R & D and rich sales experience.

In the battle of the sports apparel industry for Chinese consumers, the local retailers are in a bad position and getting worse.

Boston's Consulting Group (BostonConsultingGroup) said in a report that the size of China's fashion apparel market is expected to increase two fold over the next ten years to over 1 trillion and 300 billion yuan ($201 billion 300 million).

And the dominant force in the clothing market is sports brand and local casual wear manufacturers.

What is even more worrying is that foreign enterprises have launched products tailored to target customers in China's two or three tier cities to accelerate the pace of development in small and medium-sized cities.

Small and medium-sized cities have traditionally been an important market for local brands.

Industry experts say it is too early to talk about the acquisition of local sports brand retailers or the participation of private equity capital.

GeorgeLin, head of Asia Pacific consumer goods, retail and medical investment banking in CreditSuisse, said: "the industry needs to experience more pain before there will be structural upheaval."

Due to the increasing cost of manpower, raw materials, rents, advertising and promotion activities, Lining and China's net profit in the first half of this year fell by 50% and 71% respectively.

Two, the company's share price fell more than 60% last year, while the shares of other local brands such as Anta, PEAK, XTEP and 31st degree also fell by 30-50% respectively.

The listed companies, together with Nike and Adidas, account for 80% of China's sports apparel market.

HSBC said in a research report this month: "local brands will lose more foreign brands in the next 12 months, because the former will suffer from a backlog of inventory and the latter will benefit from the increase in sales."