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    International Shoe Companies Use The "Low Price" Strategy To Enter The Chinese Market

    2011/11/25 11:20:00 15

    Recently, Adidas announced the first three quarters of Greater China.

    Sales volume

    Up to 900 million euros, compared with 721 million euros in the same period last year, an increase of 25% over the same period last year, excluding exchange rate factors, an increase of 28% over the same period last year, which ranks first in Adidas's six largest market.

    Compared with the rapid growth of Adidas's performance, the performance of domestic sports brands is not optimistic. In the third quarter, many domestic sports brands including Lining, Anta and PEAK were affected by different degrees of inventory, and their performance growth slowed down.


    The decline in sales performance of domestic sports brands is closely related to the sinking of the two or three line market in the international brand channel. The two or three line market competition is becoming more and more intense, and the pressure on domestic sports brands will also increase.

    By the end of June 2011, Adidas had more than 6000 chain stores in China, and its pricing in its channel system was significantly lower than Adidas's.

    brand

    The sales point of NEO series products has reached about 900, which is mainly aimed at the products of consumers in China's small and medium-sized cities, and is conducive to Adidas's penetration into small and medium-sized cities.


    In the plan for the next 5 years released by Nike and Adi last year, they all said they would increase the intensity of the two or three line market expansion, and will launch products that are closer to the two or three line market and echo the main market of domestic sports brands.

    So far, domestic sports brand sales outlets have 70% layout in the two or three line market, and the increase in the number of stores in the two or three line market is one of the driving forces for the growth of domestic sports brand performance.

    But at present, in the two or three line market, the number of sporting goods stores at home and abroad has reached more than 40 thousand, and the consumption potential of sports goods market has basically been excavated, making it harder to make money in new stores.


    As Nike and Adidas continue to launch all kinds of low price competition for China's two or three line market, coupled with the fact that Chinese consumers' brand loyalty is not high, the impact of local sports brands will be more and more serious.

    In such a situation, what will the domestic sports brand compete with the international brand? What tactics will be used to win the battle? This is the moment when the domestic sports brand "shears" and changes.

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