Is Nike Selling UMBRO For Pformation Or Self Graves?

In P, 2008, Nike offered 285 million pounds to buy "a href=" http://sjfzxm.com/news/index_f.asp "UMBRO" /a "(Umbro). However, after only 4 years, UMBRO was sold at a price of 225 million dollars in December 2012.

Apart from making Nike lose, this loss of business also involves almost all the retailers in the mainland of China who represent UMBRO brand.

At present, dealers who have suffered varying degrees of losses have lodged a claim with Nike.

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< p > Nike's trademark image comes from the feather of Greek victory goddess wing. In the critical moment of the decline of Chinese market performance, does this feather represent speed instead of flying high because of selling UMBRO? < /p >

< p > < strong > Nike sells UMBRO for commercial fraud? < /strong > /p >

< p > "Nike did not continue to develop the brand after buying UMBRO brand, but sold its core value after mining it."

In June 27th, Ding Lijing, a retailer, told reporters on the phone that Ding Lijing was the chairman of the Shaanxi Limited dragon jump sporting goods Co., Ltd. (hereinafter referred to as "Shaanxi dragon jump"). Her business began to represent UMBRO brand in Shaanxi in the mid 90s of last century, and now she is struggling to give up.

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< p > as the British veteran football products manufacturer UMBRO (Umbro), its production of England series sports "a target=" _blank "href=" http://www.91se91.com/ "clothing" /a "was once highly praised by Chinese young consumers.

In 2008, Nike chose to buy UMBRO, which was also interpreted by market participants as "to make up for the difference between Adidas and Adidas in the field of football products".

The latter has a high market share in the field of football products.

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"P >, then Nike confidently established Nike sports (China) Limited UMBRO China (hereinafter referred to as" Nike UMBRO ") responsible for developing UMBRO's business in mainland China.

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< p > the brand with such potential has also attracted the Zhengzhou people Wang Jun.

Wang Jun is the general manager of Zhengzhou Li Kang culture and Sports Development Co., Ltd. (hereinafter referred to as "Zhengzhou Kang").

In June 2011, his company contacted Nike UMBRO and signed it as the biggest distributor in North China.

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A written material provided to reporters by Wang Jun P showed that during the period from September 2011 to December, Li Kang, a newly opened and refurbished shop for UMBRO brand, invested 6 yuan in decoration and about 800000 yuan, and renovated 3 stores in the following year.

By the end of 2012, a total of $about 27000000 had been purchased for UMBRO brand and about 4000000 yuan for UMBRO brand.

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Wang Jun, who appeared before reporters, was not like a businessman, but more like an athlete. He wore a green UMBRO T-shirt, black sports shorts and sports a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > - precisely the brand of this sport he wore, which began to upset him last year.

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In October 24, 2012, Nike announced that it would sell UMBRO to the P Iconix Brand Group (Inc.) under the $225 million price tag, which caused many UMBRO dealers to be caught off guard.

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"P", "UMBRO brand, which has been sold again, has been taken away by Nike by two major football games, Manchester United and England, which are the two old British brands that are very popular among Chinese consumers."

Ding Lijing believes that UMBRO brand value has been greatly damaged.

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Less than P, it is even more unexpected to her that in June of that year, Nike UMBRO just signed a retail agreement with UMBRO on the retail rights of UMBRO products, which lasted for the period from July 1, 2012 to June 30, 2013.

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< p > "Nike continues to sign a retail agreement with us after we intend to sell UMBRO, but after it sold UMBRO, it did not carry out the aftermath treatment with us," Ding Lijing said. "These measures of Nike have constituted commercial fraud!" < /p >

< p > but in response to this magazine, Nike insists that it has informed the distributors of UMBRO brand ownership in advance.

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In March 7th of this year, Ding Lijing received a written notice from Nike UMBRO, and informed her that the retailer agreement signed last year will be terminated in May 30th one month ahead of schedule.

Ai Connie J, the owner of Yin Bao Xin, had never had contact with Shaanxi Long Yue.

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< p > "we do not operate this brand overnight. Our newly renovated shops are made in accordance with the 3~5 years of service life, but only after a year of decoration is it impossible to sell UMBRO anymore."

Ding Lijing said, "at present, there is no settlement between us and Nike UMBRO in terms of 300 thousand yuan of funds. Since last year, Nike is no longer dealing with UMBRO brand. We are forced to shut down gradually. The most conservative estimate is no less than 1 million yuan."

As for the losses caused by this accident to Li Kang, Zhengzhou, according to Wang Jun's description, in the warehouse in Shanghai, Zhengzhou has 15 million yuan in stock.

In addition, there are 16 shops in Zhengzhou, with a total investment of over 4 million yuan, with a monthly loss of 400 thousand yuan.

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< p > except for Shaanxi Long Yue and Zhengzhou Li Kang, the reporter contacted many UMBRO brand retailers. They all said Nike had caused serious losses to UMBRO because of selling UMBRO.

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< p > < strong > hardship protection road < /strong > /p >

< p > in December 18th last year, Wang Jun sent the first communication email to Nike UMBRO, decided to withdraw from the operation of UMBRO brand, and demanded that all the UMBRO products stored in the Shanghai warehouse be returned. At the same time, Nike Nike was required to make compensation for the loss caused by the news that it had not been informed of its sale in time.

A week later, Wang Jun received a reply from Nike UMBRO, in which UMBRO China rejected his request.

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After P, Nike UMBRO's staff were gradually demobilized in the process of repeated written communication between Nike and Nike.

According to Li Kang, Zhengzhou, told reporters that after the sale of UMBRO, Nike gradually dismantled regional managers, and then discontinued the sales managers and general managers responsible for direct business contacts with distributors, and finally dismissed CEO Hong Jia Kan.

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< p > in the process of Nike UMBRO's dismissal of personnel, the UMBRO division, which was approached by agents, was dissolved, and the communication between the two sides was once stagnant.

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< p > > this magazine has contacted Nike China many times. In July 1st, Sun Peng, Nike China Public Relations Department, sent a written reply to the journalist, making the following statement: < /p >

"P >" Nike group announced the sale of its UMBRO (UMBRO) brand plan in May 31, 2012. Nike sports (China) Co., Ltd. UMBRO China Ministry informed the dealers in written form on June 2012 6.

In written correspondence, UMBRO China made corresponding plans on how dealers successfully operated UMBRO brand during the handover period.

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"P >" subsequently, in order to help all relevant distributors to improve the operation of UMBRO brand and promote business development, UMBRO China began to assist dealers in July 2012 to deal with subsequent business matters.

In October 24, 2012, Nike group announced that it planned to sell UMBRO brand to the ACON brand group, which was announced in December 3, 2012.

According to the agreement, Nike group will continue to sell UMBRO products in China until September 2013.

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< p > the above statement did not directly answer why the retailer agreement was signed with retailers after deciding to sell UMBRO brand.

And a number of enterprises contacted by reporters said they did not get the news that Nike would sell UMBRO in time, and Nike UMBRO did not give any help in assisting dealers in handling subsequent business matters.

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< p > January 2013, Zhengzhou Li Kang hired Xu Yongxiang, a lawyer in Henan Wen Zhong law firm, sent a lawyer's letter to Nike UMBRO, hoping to return all the stock of the company, and at the same time, make reasonable compensation for the loss of Zhengzhou's Kang.

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< p > June 26th, Wang Jun rushed to Shanghai with his own company staff and Xu Yongxiang lawyer.

In the afternoon, reporters followed Wang Jun to the 58 floor Nike headquarters in Shanghai, Nanjing West Road. The office with the words "Nike sports (China) Co., Ltd. - UMBRO China" was gone.

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< p > according to the contact method provided by e-mail, Wang Jun contacted a staff member, but the officer said, "I am only responsible for returning the goods. You report it to me for further examination and approval."

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< p > in Wang Jun's repeated request to see the boss, a responsible person was finally arrived.

Since then, the two sides have held two hours of negotiations behind closed doors.

Wang Jun did not tell reporters the details of the negotiations. "This is Nike China's procrastination."

He said.

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< p > June 28th, Nike Credit Department officially met with Wang Jun, and promised to actively deal with this matter.

In view of the company's statutory process, the final solution will be given in 20 days.

"Litigation is the best policy. I respect and appreciate Nike. I hope we can have a satisfactory result."

Wang Jun told reporters.

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< p > Xu Yongxiang thinks that Nike signed a retail agreement with Li Kang, Zhengzhou, as a "overlord agreement".

For example, in the agreement, the contents of refurbishment of exclusive stores stipulate: "every three agreement years, UMBRO can ask retailers to refurbish stores according to the standard of excellent retail operation established by UMBRO.

The retailer should undertake the total renovation fees independently, and stipulate in the terms of the two parties' performance objectives: "UMBRO can make reasonable adjustments to the total sales volume" at any time.

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< p > "if Zhengzhou Li Kang changes the contents of Party B in the contents of the indictment of Nike China to other agents, it can also be established.

The existence of Nike is not equal to the rights and obligations agreement between the two sides, especially in violation of the principle of good faith in major changes in circumstances.

Xu Yongxiang told reporters.

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Before P deadline, reporters tried to contact Wang Jun on the progress of consultations between the two sides, but Wang Jun did not disclose more information on the grounds of "traveling in the US".

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< p > < strong > selling UMBRO for pformation? < /strong > /p >

< p > in the 2013 fiscal year ending May 31st this year, only 5% of the sales in the Greater China region were released in the sales area of Nike.

The reason why Nike CEO Mark Parker frustrated the Chinese market is that the overall growth rate of China's economy has slowed down.

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< p > Nike has also recently predicted that sales in the Chinese market may continue to decline in the first half of the new fiscal year.

Zhang Qing, the founder of sports Consulting Co. Ltd., told reporters that the decline of Nike's performance was due to the recent slowdown in macroeconomic growth: the whole sporting goods industry has entered a period of adjustment, and the industry is in a downward trend.

Nike, as the industry leader, will inevitably be affected.

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Ma Gang, a sports brand observer, said in an interview with reporters, "Nike's frustration in the Chinese market, in addition to the overall slowdown in China's economy, has also increased the pressure on Nike to face the pressure of overstock and the price pressure brought by competitors." P

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In order to reverse the predicament, Nike is moving forward from the previous market strategy of the second tier cities to the three or four tier cities and even the lower end market, P.

"But the most competitive competitors Nike may encounter are competitors at the same level, such as Adidas's challenge to it."

Zhang Qing said.

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< p > as the two largest sports brand in the world, Nike has absolute monopoly in the basketball market. Adidas has strong resources in football field for a long time.

But by purchasing UMBRO, Nike's role in making up its short board is not obvious.

This is probably why Nike is eager to sell UMBRO.

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