Nike Wangfujing Flagship Store Closes Online Channel Into Future Trend

During the summer of 2007, P, Nike flagship store opened in Beijing, and all the sports stars such as China flying Liu Xiang and world soccer player Ronaldinho came to the scene, which made the bustling Wangfujing more noisy at this time.

"China is one of Nike's most important markets. Nike's flagship store in Beijing is the largest in nearly 3000 Nike brand retail stores."

Nike global president Charlie Denson introduced the opening ceremony of flagship store.

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< p > however, it is hard to find Nike's style in the Wangfujing now. The flagship store has quietly come to a close.

The Nike brand experience store, located in APM shopping center in Beijing, once occupied an excellent location of 1100 square meters on the street. It has been surrounded by orange barrier plates and is dazzling outside the mall.

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< p > "the lease is due" is the reply of Nike China Public Relations Department to the reasons for the withdrawal of the Wangfujing store, and there is no definite answer to why the contract is not renewed.

"Nike has the idea of renewal, but we have not considered it," said Susan, manager of APM investment promotion in Beijing.

"Nike is not particularly consistent with the positioning of the project as a whole. Compared with sports brands, consumers now prefer fast fashion. The product line of this kind of brand has a fast updating speed, low customer consumption and a strong absorption capacity for young consumer groups. After this Nike adjustment, H &M will be introduced."

In addition, in view of other sports brands in other shopping centers, Susan said that the current sports related brands still have CONVERSE, and the rental area is not large. There is no possibility of adjustment temporarily. However, "going to sports" is the trend of project operation.

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< p > when Nike stores closed, other sports brands collectively adopted the relevant contraction strategy.

In February this year, the German brand Puma announced that it would close more than 90 unprofitable shops.

Compared with the foreign sports brands, the mainstream sports brands such as Lining, Anta, PEAK and so on appeared more obvious business contraction situation since 2012.

In the first half of 2012, Lining Group continued to push forward the change of sales channels, made a profit assessment and structural adjustment to shops, closed 1200 inefficient stores, followed by PEAK, closed 1067 stores in the third quarter of 2012, and reduced the number of stores in 360 degrees, Anta and XTEP, but also reached more than 100 stores.

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< p > "such a large-scale collectivism is related to the radical expansion of the earlier stage."

The 2008 Beijing Olympic Games held great expectations for sports brands both at home and abroad.

But with the decline of the Olympic Games, there is a problem of oversupply and overcapacity in the market.

Statistics show that in 2010, Lining's stock amount was about 800 million yuan, and Anta and XTEP stock exceeded 450 million yuan, PEAK and 31st degree were 340 million yuan and 250 million yuan respectively, and the total stock of several brands was 2 billion 300 million yuan.

In 2011, the stock amount of Lining and Anta increased significantly, reaching 1 billion 130 million yuan and 620 million yuan respectively, and the total stock of the 5 major brands reached 3 billion 300 million yuan. In the first half of 2012, stocks continued to grow, up to nearly 3 billion 800 million yuan, an increase of 65% over 2010.

A lot of inventory will not only cause funds to be stranded, but more importantly, if goods can not be stored in time, the value of commodities will be smaller and smaller.

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< p > to cope with the market changes, Nike and Adidas, which originally concentrated on a second tier city, launched the strategy of "low line city", that is, to expand to the three or four tier cities in China.

According to Adidas's public figures, more than half of the more than 800 new businesses opened last year were in low tier cities.

In addition, in its plan to "2015", it is mentioned that the goal of opening 1400 stores in low level cities by 2015 will be achieved.

Up to now, Adidas has entered 900 low level cities.

In addition, Nike is planning to open 40 new -50 factory stores this year, in order to lower its inventory at low prices.

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< p > the "sinking" plan adopted by international brands has caused great pressure on domestic sports brands, pushing these brands from offline to online, and expanding sales channels through e-commerce.

In April 8th, Lining launched a special sale with fan Kai pin to remove inventory at a low price of 19 to 68 yuan.

Ding Zhizhong, chairman of Anta, also said in the near future that "if the traditional retail outlets do not pay attention to online channels in the future, the future market will be blank", revealing that Anta does not rule out the possibility of creating exclusive online channels.

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