Nike PK Lining, Who Will Buy Who?

When the Olympic Games come to the door, Lining, a Chinese local brand, is coveted by foreign brands. Can it be extended in the post Olympic era?

"Is Nike planning to acquire an Asian brand, such as China's Lining?"

"In fact, (Nike) is indeed likely to seek to acquire a Chinese competitor or a Japanese competitor to expand its Asian business and further consolidate its presence in the Asian market."

"Frankfurt report" recently published the world's largest sportswear and sportswear manufacturer Nike brand President Charlie Denson answer reporters' questions.

Lining has been the designated winner of Chinese athletes for four consecutive years. Can he continue the glory of the national brand when he arrives at the door of the Olympic Games?

Nike launched a new offensive, "what we should do and how we do it will not panic."

Having heard this report, Mr. Ao, head of Li Ning Co's Beijing headquarters, told the International Herald guide, "we have seen this news, and now there can be no response. After all, Nike has no definite intention."

As of press release, Nike headquarters has not yet made a reply to this matter.

But he said publicly: "our focus now is to establish and expand Nike brand influence in China.

Then further consolidation of other brands in China, such as Converse or Umbro, will follow. "

Fan Zhongtao, a Chinese brand marketing expert, told the national Herald guide that Nike brings challenges and opportunities. Chinese brands must make their own brand strategic planning, not just pforming sports into business.

"Nike will pay close attention to everything that may suit us."

Even though China's manufacturing costs are rising, Nike will not shift its manufacturing base to China. Instead, Nike will continue to expand to two or three tier cities in China after major cities, despite the rising manufacturing costs.

To this rumor, "local brand Lining should be happy, at least to show that the local brand of the Chinese market has become an international brand competitor." Huang Qi, President of the international brand management group, told the International Herald guide, "of course, we should be vigilant at all times, because Lining's brand reputation and loyalty need to be improved. Nike's position now should be the charge for Lining to build a local leader brand."

Two years ago, when the five brands were attacked, the 2003 Research Report on the famous sports shoes brand value, which was cooperated by zero point survey and zero index data network, showed that Lining's brand loyalty was 53.4%, Adidas was 39.8%, Nike was 39.1%.

The actual share of China's sportswear market is basically three points from Lining, Nike and Adidas.

"But today, Lining is in an awkward position."

China's chief brand official Liang, China international brand alliance, told China's International Herald guide.

Harvard Business School Survey data show that in recent years, China's three largest brands in the market, Nike, Adidas and Lining, share 21%, 20% and 17% respectively.

The brands are being interconnected and competing for each other from the first tier to the three tier cities.

Zhang Zhiyong, chief executive of Li Ning Co, released data showing that Adidas's operating income in 2007 has exceeded 10 billion 200 million euros (about 102 billion yuan). Although Li Ning Co has developed rapidly, its sales volume last year was only 4 billion 300 million yuan.

Fan Zhongtao believes that the next strategy of Lining as a domestic leader of sports brand will play a key role in the Chinese market.

"The impact is not only on the enterprise, but also on the whole industry and consumer psychology and behavior in China.

This is a severe test of the industry.

In the post Olympic era, the brand of Zhen Zhang is an important part of Nike's marketing. In 2007, Nike's brand income accounted for 86% of the total revenue.

He said Nike will further expand its brand influence with the help of the Beijing Olympic Games and strengthen ties with athletes.

He stressed that "(Nike) greater opportunities will come from the post Olympic era."

"Nike considers the layout from the perspective of the industrial chain, and the acquisition of Lining is of strategic importance," he said.

Fan Zhongtao believes that "Nike looks at the potential market of post Olympic Games, and it is a company willing to invest in the future."

If Lining's brand is acquired, it may become a sub brand, which will help Nike build a multi brand strategy.

Huang Qi told the International Herald guide, "like L'OREAL group, we can form a solid triangle brand development system, a diversified product system and product mix, expand brand strength, enhance product strength and channel power, and we can grasp the layout of the entire industrial chain."

Of course, the Lining brand may also disappear due to acquisition.

Liang Zhongguo said that there are many possibilities in the future brand integration mode, such as mother and child brand, double brand, pitional brand, but no matter which possibility, it is not difficult for Nike to complete brand integration through strong influence.