Nike ADI Holds A Debate Between Ideal And Reality In China Market

< p > recently, the sale of UMBRO brand led to a loss of agents. Nike's public opinion was pressing.

At the moment, sales in the fourth quarter of 2013, which just came out, made it rather "upset".

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The rapid growth of markets such as P and North America can hardly conceal the embarrassment of its sales in the Chinese market. Nike warned in the quarterly report that its sales in the Chinese market will decline in the first half of the new financial year.

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< p > since last year, < a href= "http://www.91se91.com/news/index_f.asp" > Nike < /a > has been troubled by inventory backlog and slowing sales.

In the face of Adidas's good performance in the Chinese market, the growth bottleneck of Nike has already emerged. The sinking channel strategy of both sides will shift the battlefield to the two or three tier cities.

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The new series developed by Adidas P has gained a preference for fashion, while Nike is still taking the "idealistic" line, insisting on sports value and how much it does not occupy.

Analysts also said that the current competitive situation is only a short-term situation, and who is better in the future and not just based on the current revenue situation.

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< p > the performance of the new financial season is not good enough. < /p >

< p > Nike's fourth quarter financial report shows that as of May 31st, its fourth quarter profit was 668 million US dollars, up 22% compared to 549 million US dollars in the same period last year. This is mainly attributed to < a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > and a target= "_blank" href= "_blank" > clothing sales.

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By P, Nike's North American market is growing rapidly, reaching 12%.

Emerging markets and European Central and eastern regions also performed well, which offset the decline of the Japanese and Western European markets and the mediocre performance of the Greater China region.

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< p > Nike expects growth in the first quarter of this fiscal year and the annual growth rate will reach Wall Street's expectations, while warning that sales in the Chinese market may decline in the first half of the new fiscal year.

However, the company has adjusted the size and color of its products to meet the needs of customers in the Chinese market.

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< p > Blair, chief financial officer of Nike, pointed out that he still has confidence in the Chinese market.

He said that the company still has a lot of things to do. The performance of the Chinese market will not always follow a gentle track. It is hard to predict how long the Chinese market can resume growth.

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< p > it is learnt that Nike chief executive Parker, explaining the latest quarterly earnings report, said: "the competition in the Chinese market is a marathon, not sprint."

In Nike's view, its failure in the Chinese market is due to the overall slowdown in China's economy.

In addition, overstock and the pressure of price reduction brought by competitors have also increased Nike's performance difficulties.

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< p > Zhang Qing, founder of the key way sports Consulting Co. Ltd., pointed out that Nike's performance in the fourth quarter basically matches the current competition pattern and development trend, and sales situation is not satisfactory.

He said that the so-called thorny issue is the short term growth bottleneck of Nike China.

"Nike is not not working hard, but the result is not so obvious."

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< p > China's market downturn is not improving. < /p >

< p > since the third quarter of fiscal year 2012, the growth of orders in Nike China has slowed down significantly, or even dropped for two consecutive quarters.

In the first quarter of fiscal year 2013, futures orders fell 5% compared with the same period, while futures orders fell 6% in the second quarter.

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In the third quarter, Nike's orders in China increased by 4%, but the revenue from the Greater China region was 635 million US dollars, down 9% from 694 million US dollars in the same period last year. In the third quarter,

The downturn in the Chinese market once again reflects the alarm of analysts.

On the production side, the Chinese market has become the biggest "pain spot".

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< p > an analyst who knows Nike points out that the profitability of the Chinese market is more important to Nike than other companies coveted by the Chinese market.

In the past fiscal year, sales of Nike have not increased in almost all markets, but sales in Western Europe have increased. So is the Western European market, except in the Chinese market.

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"P" in Zhang Qing's view, this statement exaggerates the importance of Nike to the Chinese market. "After all, it has about 2000000000 of China's global revenue of about 10000000000 US dollars. It can only be said that it attaches great importance to the Chinese market, but it has some confusion about the challenges that exist in the Chinese market."

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Besides P, Nike is also facing problems in making its products suitable for the taste of Chinese consumers.

Nike's biggest competitor, Adidas, has launched a full range of products that resonate with Chinese shoppers.

The growth of Adidas's sales means that Nike's market share is being encroached on.

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< p > at present, China's sporting goods industry is in the cold winter. Nike is also unable to escape. In addition to the shocking decline in sales figures, Nike's inventory burden is becoming heavier and heavier.

"China is still the focus of our inventory management," said Nike chief financial officer at a previous investor conference, which is trying to reduce inventories.

Insiders from Nike revealed that to clear inventories, 40~50 self run factory store will be opened this year.

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From June to June, the general manager of Nike Greater China will be the current Vice President of P, and former general manager will be the vice president and general manager of Nike children's wear.

The industry believes that the new manager can lead Nike Greater China out of a poor profit situation.

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< p > > a href= "http://www.91se91.com/news/index_x.asp" > Adidas < /a > counterattack < /p >

< p > Nike has left many problems when it constantly adjusts its strategy.

Recently, the sale of UMBRO brand caused the dealer's authorized expiration of inventory was difficult to clean up, which sparked heated public opinion.

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In the battle for China's sportswear market, Adidas is catching up with Nike P.

The key to Adidas's strategy in China is to extend its brand to shoes and sportswear.

ADI is also reorganizing retail outlets, so that stores will focus on specific market segments.

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At the same time, in the face of the impact of fast fashion on the sports apparel industry, Adidas also made a preemptive adjustment and recruited talents from the Swedish fashion company Hennes&MauritzAB and Spain Zara and other retailers. P

Adidas's taste in fashion has brought sweetness to the Chinese market. Nike's performance seems to be more conservative and paranoid.

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< p > Zhang Qing told reporters that Nike and Adidas take two strategies to deal with the Chinese market.

Adidas should make more and more fashionable and leisure products under the current demand.

Adidas's new Neo is positioned in the middle and low end, so it is better at current sales.

And Nike has always insisted on the demand for sports values, "in the short term, some are thankless, and the change of consumer's consumption concept takes time."

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< p > people in the industry say that from a certain point of view, sports brand and fast fashion are not only brand competition, but also a battle for channel, and the positions of both sides are moving down to the two or three tier cities.

Compared with Nike, Adidas once again succeeded in taking the lead and sinking channels to seek new growth points.

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< p > a person who is close to Adidas introduces that Adidas is based on Sports attributes and products that are partial to fashion. This strategy is not a problem in the short term, but there is considerable pressure.

"When the product is too heavy on the way of life, and the channel continues to sink to the four or five tier market, whether the attributes and status of the brand will be weakened or affected is needed to be observed."

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< p > "if Nike is an idealist, ADI is a realist, asserting who is better, not judging based on current revenue, nor can we infer the future according to the present situation."

Zhang Qing emphasized.

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