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    Domestic Sporting Goods Market Shrinks, Nike ADI "Change Price With Price"

    2013/3/27 12:11:00 13

    Domestic Sporting GoodsNikeADI Shoes

    < p > March 27th, following Adidas's announcement that sales in the Greater China region increased by 15% last year, Nike also stressed in the three quarter of this fiscal year that China is the most important high growth market.

    The industry believes that the domestic sporting goods market continues to shrink in the background, Nike and Adidas rely solely on the "price for volume".

    According to the market layout of these two sports brand giants, the price war is also an important strategy to drive the brand to break through the market.

    < /p >


    < p > compared with the international first-line brand, the local sports brand is also cloudy.

    PEAK's net profit fell to its lowest level in five years last year, and Anta's net profit of 1 billion 359 million yuan was the first decline in listing in five years. Lining also warned that 2012's performance would be "huge losses".

    < /p >


    < p > the domestic market atrophy is the common experience of the domestic and foreign sports brands. In the view of the industry, Nike and Adidas can break through the market and benefit from the sinking of the channel.

    Although Nike's orders in the Chinese market increased by 4%, its revenue in Greater China declined.

    Zhang Qing, the founder of sports consulting firm, believes that this is due to a reduction in the unit price of its products due to discounted sales.

    < /p >


    < p > but it is still hard to stop Nike's determination to "sink".

    Prior to this, Nike announced that it plans to open 40-50 new factory stores this year, and the price of the products will be 3-4 discount.

    The scale of its opening is far more than that of the past. The new store will also extend from the first line to the two or three line market.

    Not only is Nike, Gao Jiali, managing director of Adidas Greater China, also said that this year's business focus is to expand the number of shops in small and medium-sized cities. 2/3 is located in small and medium-sized cities in China's newly opened 800 new stores.

    Moreover, by 2015, Adidas plans to enter more than 1400 small and medium-sized cities in China.

    < /p >


    < p > foreign sports brands rely on channels to sink and occupy the original survival space of domestic sports brands.

    The two or three tier cities in China have always been the main battleground of domestic sports brands, but Nike and Adidas are basically at the same level as domestic sports brands after the discount, so that consumers in small and medium-sized cities begin to "change their minds".

    < /p >


    < p > as of last year, the number of six major sports brands such as Anta, Lining, PEAK and so on has exceeded 3000 stores, 361 degrees or even in the fourth quarter of last year.

    With the movement of foreign sports to accelerate the penetration of small and medium-sized cities, the future of domestic sports brands will face greater challenges.

    < /p >


    < p > however, insiders also attributed the difficulty of domestic sports brand to their own reasons.

    Zhang Qing believes that local brands are not only overproduced, but also homogenized.

    At the same time, the domestic sports brand is hard to keep up with the increasing demand for technology and fashion.

    < /p >

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