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    Nike Flagship Store Will Close And Withdraw From Nanjing West Road

    2012/1/30 13:55:00 27

    Nike Sports Shoes


      

    Nike

    The flagship store will be evacuated from the "Xiangyang" building in Nanjing West Road.


    Recently, France's LVMH group's Shanghai sales Cosmetics Co., Ltd. signed a lease agreement with the nine hundred group on the 1-5 floor of Nanjing West Road 993 (formerly Xiangyang children's world) rental agreement, which will become the world's largest flagship store in the world.

    This indicates that the Nike flagship store, which is still in operation, will soon be closed.


    Xiangyang children's world is located

    Nanjing

    West Maoming road junction is the "Golden Block" in the golden section.

    It used to be easy for its owners to be regarded as the vane of the rise and fall of the industry because of its high rent and first-class position.


    Why is Nike giving up this shop? What kind of industry trend is hidden behind it?


    Nike's flagship store instead of Nike


    Recently, SEPHORA, the leader of the international cosmetics retailing industry, signed an agreement with the nine hundred group to open its first flagship store in Xiangyang Building, Nanjing West Road.

    According to relevant reports, according to the strategic consideration of Jingan District government on the commercial layout of Nanjing road in Jingan, focusing on the coordinated development of international Jingan construction and Jingan Nanjing Road business circle, since last year, the nine hundred group and Jingan tobacco companies have made unremitting efforts to sign the lease agreement of the 1-5 floor shop of Nanjing West Road 993 (formerly Xiangyang children's world) with the French LVMH group's sales company (Nanjing). The introduction of the global cosmetics retail authority, the company, has been introduced.


    During the Spring Festival, the reporters came to the field and found that the Nike store is still operating on the 1-2 floor of No. 993, Nanjing West Road. The main business on the first floor is Nike men's wear, men's shoes and new products for the season. The two floor mainly operates Nike's women's wear and women's shoes, and the third floor to the five floor has ceased operation.


    However, Nike stores are obviously not popular enough, which is in sharp contrast to the clamour in the flagship store of UNIQLO.

    In the nearly one hour after the reporter stayed, the guests who came to patronize in twos and threes, the guests were mostly inquiries, and the checkout desk was cold and clear.


    The reporter walked around the shop and picked up a light running shoes. The price was 1469 yuan, a stable running shoes cost 869 yuan, and the other shoes of the same type were also up and down 1000 yuan.

    The price of a gym shoe is 829 yuan, while the average shoe price is 699 yuan or 679 yuan.

    "This shoe is quite expensive."

    Two young people with a pair of sports shoes to the clerk inquiry, can not help but sigh.

    The clerk told reporters that only a small number of basketball vests, shorts, pullovers, down garments were playing 30 percent off, even after the discount of basketball vest, the price is 209 yuan.


    Nike's only two flagship store


    Shop director told reporters that Nike has only two flagship stores in Shanghai, and Nanjing West Road store is one of them.

    Nike was stationed in the Xiangyang Building in 2008, and the other is Nike store of world trade union Bailian.

    "All other Nike stores are made by agents.

    At present, Nike store is being renovated and renovated.


    Many employees in the shop said they had heard about the upcoming evacuation, but the date of the specific withdrawal is unclear.


    Speaking of sports brand, Nike is undoubtedly the most famous brand.

    Founded in 1968, the company is engaged in the design, development and marketing of footwear, clothing, equipment and accessories worldwide.

    This year is the thirty-second year for Nike to enter the Chinese market. China is currently the second largest market in Nike.


    However, since 2009, Nike China seems to have entered a stagflation period.


    BELLE's performance Bulletin shows that in the first half of 2009, Nike's and Adidas's revenue of BELLE agents was 3 billion 320 million yuan, up 2.5% from the same period in 2008.


    Daphne semi annual report 2009 shows that as of June 30th, Daphne will close all Nike stores in 2009.


    According to Nike's 2011 quarter second quarter earnings report last month, the company's net profit in the second quarter was $469 million, an increase of 2.6% over the same period last year. The sales in the Chinese market, excluding exchange rate factors, grew 28% over the same period last year.

    Nike's gross profit margin in the second quarter was 42.7%, down from 45.3% in the same period last year, and the cost of sales increased by 24% over the same period last year.


    A pair of shoes with a pair of hooks was once a dream of the young people. "Everyone who will have a pair of Nike shoes in the student era will feel very excited."

    Netizen YUME recalled the popular Nike.

    Netizen Gago admitted to the Commercial Daily reporter that, compared to the frequent purchase of Nike sports shoes, he has rarely bought Nike stuff now.

    "Although buying sports shoes will think of Nike for the first time, there are lots of good brands now, and it's not so superstitious that Nike or Adidas are."


    Sports brand strategy contraction


    Not only is Nike, but its old competitor Adidas is also taking a strategic contraction.

    Adidas's third quarter earnings report in 2011 showed that the income of the Greater China region increased by 13% compared with the same period in the second quarter.

    Adidas immediately said it would close some inefficient outlets.


    Wang Xianqing, director of the Institute of circulation economics, Guangdong University of Business, said that Nike's brand innovation was not enough, and Nike, which was at the maturity stage of its brand, did not have any new highlights in recent 10 years to promote its brand image.

    "Sports brand has gone through a period of rapid expansion, and now it is a stable period.

    If we do not innovate and market initiatives are not enough, there will be survival of the fittest in the future sports brand industry.

    He thought.


     

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