Nike'S 3% Decline In China'S Market Revenue Redefines "JUST DO IT"

Huang Xiangyan, senior communications director of Nike Greater China in November 16th, said in an interview in November 16th that the enthusiasm of Chinese young consumers for running feedback was unexpected when we tried to popularize this market in 2008.

Running is still the biggest sport category of Nike in China, higher than basketball and football.

In the global financial performance of Nike in the 2013 fiscal year, the contribution of running is 20.46%, only 26.99% of that of Sportswear.

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< p > this is also the reason why a href= "http://sjfzxm.com/news/index_x.asp" > Nike < /a > has such great confidence in running.

Of course, what is more critical is the sports social network extended by the NIKE+ platform.

And Nike's business model is changing with the extension of the platform.

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< p > < strong > Nike+ mode < /strong > /p >

According to the data provided by Nike, there are about 5 million runners on the Nike website. The total number of registered users of Nike+ is 18 million. In China, the number of registered users of Nike+ has increased by 130% over the past year, and the downloading of Nike+ APP has increased from 2 million 580 thousand last year to 2 million 580 thousand, up 350%, most of which are runners. P

Coupled with fans of social software, Nike is trying to weave a social network.

Although the effectiveness of a product is not reflected in Nike's earnings report, NIKE+ has played an absolute boost in the running business, which has always been a leader in revenue.

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< p > Zhang Qing, founder of Beijing key road sports consulting company, said: "Nike's main profits lie in < a target=" _blank "href=" http://www.91se91.com/ "> clothing < /a > and a target=" _blank "href=" _blank "," shoes "," but "its forward layout of digitalization is forward-looking.

"Nike launched the Nike+ platform digital marketing mode, the key is to enhance the interaction with consumers, and through the detection and processing of consumer information to achieve more personalized service to customers.

This is an innovation of consumer demand services, which helps businesses to understand and grasp consumers' information more conveniently and quickly, and is also conducive to the targeted launch of products.

CIC consultant light industry researcher Zhu Qinghua said.

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< p > Nike+ is undoubtedly a milestone in Nike's digital innovation.

In 2006, engineers at Nike headquarters found that almost everyone in University of Oregon campus used iPod.

After contacting with Apple Corp, Nike+iPod's plan hit the nail on the head.

This gives Nike the first taste of the sweetness of the digital community.

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< p > after several generations of upgrading, Nike+ supports a variety of system downloads. Through mobile phones, runners can get their own sports time, pace, heat consumption, route and other data.

At the same time, you can upload these data to Nike community, where you can get more professional advice, and more importantly, there are runners sharing with you, content can be experience, frustration and even show off.

This is very appetizing to the young people who are now taking pictures and making friends circles.

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< p > the products that are now extended through Nike+ are involved in more sports through more forms of carrier, such as Nike+Training, Nike+Basket-ball and fuelband.

Technological innovation is also driving Nike's new business model, namely, "user + data + service + terminal."

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"P", which makes Nike look like a technology company.

Back in 2005, Nike began to value social media.

During the 2006 World Cup, Nike worked with Google to launch Joga.com for teenagers keen on football based on the Orkut platform.

In addition, Nike also tried to use MySpace and YouTube platform.

At that time, Nike's home page on MyS-pace was one of the hottest brand communities with more than 50 thousand fans.

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From 2008 to 2009, Nike started building soccer communities in various markets around the world, using Facebook, QQ and other platforms.

In 2010, Nike covered the use of social media in other major sports categories, aiming at promoting the promotion of the most suitable social platforms in different markets.

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"P" is based on early social attempts to have the Nike+ community later.

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Through the digital innovation of Nike+, Nike is breaking away from the traditional shoes and shoe selling sports enterprises. In this new emerging mode, Nike+ is like the nervous system, which connects all kinds of sports products and users. Nike can provide professional sports services such as online, offline (such as night running, category shop, Marathon and offline activities) through Nike+ platform to enhance the sports experience, and Nike can also explore more business opportunities, such as the concept of night running, so that Nike's R & D personnel will add reflective elements to shoes, a target= "_blank" href= "http://www.91se91.com/" > clothes "/a", directly boosted the sales of P.

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< p > "the company made clear what it wants from the beginning, that is, it is a cool sports brand.

They hope to inspire people with all kinds of technical means.

A senior runner in Beijing said.

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< p > Zhang Qing believes that although Nike has not made many changes in recent years, it has made steady efforts in sports operation and made efforts in promoting the change of sports lifestyle. This is also a direction. As the leading brand of the industry, it will not become a follower. "Doing things that are beneficial to the industry will become the biggest beneficiaries."

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< p > indeed, for Nike, his vision is not to sell more than a few pairs of shoes.

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< p > < strong > inventory is not just stock < /strong > /p >

"P >" inventory needs to be managed. We really have some problems in the forecast of demand and supply. This is what we have been doing in the past two or three seasons. We are working with distributors to do something. Now we have to do "body".

Huang Xiangyan said.

Nike is cleaning up its inventory through discount sales at factory stores and dealers.

"We can't just face inventory and stop everything. The market still needs new things to come in."

While solving inventory, Nike must try to combine its products with the preferences of Chinese consumers.

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< p > in Huang Xiangyan's view, Chinese consumers are increasingly fastidious about the pursuit of freshness and speed, especially after the 1990s.

Faced with such consumers, Nike must adapt to the market with rapidly changing products.

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< p > this has already been reflected in the product.

In recent years, the shape of Nike's products is more simple, including more scientific and technological components, and more colorful colors, especially shoes.

This situation exists not only in Nike, but also in its old rival Adidas.

To some extent, this is an adjustment of the sports brand to the fast fashion shock. The simple design can reduce the production difficulty and shorten the production cycle, which means the supply chain's reaction is more rapid.

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< p > Nike even knows how much your monthly income is, what kind of consumption habit is, how many times you go shopping and shopping several times a month, "through these subdivision market surveys, we will have a more detailed control of channel product inventory, so that more appropriate products can enter the market that needs it."

Huang Xiangyan said.

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< p > according to Zhang Qing, since the beginning of this year, local sports brands have shifted from the past wholesale mode to terminal retail, and have achieved initial success in the retail terminal experience and the improvement of retail operation efficiency.

Taking Anta as an example, it has maintained steady growth in orders for two consecutive quarters.

This is due to its adjustment in the order cycle. "Anta used to be the two quarter of the year, the new product is very slow, and now it is small batch. Besides big orders, there are still small orders for the year, which can replenish orders and replenish the goods."

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< p > last December, Li Ning Co announced that it would spend 14-18 billion for integration of sales channels and repurchase of dealers for clearing inventory.

At the same time, it also closes down some inefficient stores and sets up efficient shops run directly by the group or with several major distributors.

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< p > "it can be predicted that if the business continues to maintain the momentum of inventory, the inventory pressure will be greatly reduced in the next one or two years."

CIC consultant light industry researcher Zhu Qinghua said.

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< p > in terms of retail terminal, Nike has made an adjustment to pform its direct store. Taking Beijing as an example, Nike tried to pform the direct shop outside the factory shop and pform the finished product experience shop.

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< p > at present, Nike has opened three kinds of experiential shops in Zhongguancun, Sanlitun and Cui Wei in Beijing.

In the running experience shop in Sanlitun, apart from furnishings and running related products, you can see more blocks about running experience.

And the staff here are asked to run marathons.

"We are not recruiting professionals from marathons, but recruiting ordinary shop assistants to train them, so that they can run the marathon level.

In this way, they can suggest different needs from different angles.

This is the true meaning of the category experience shop, "using runners to motivate runners."

And category experience shop is Nike's future shop trend, Huang Xiangyan said.

"At present, the consumption of sporting goods is more about the products consumed by consumers, not for sports, but for casual wear, but this part is vulnerable to the impact of fast fashion products.

But basic sports products are relatively substitutable because they are functional and have a certain cultural background.

Zhang Qing said, at present, the surplus of China's sporting goods market is not the sporting goods in the true sense. It is the product with low added value, easily imitated and recreational sports style.

From the perspective of real business, the domestic enterprises of sporting goods enterprises, the number one brand, will have an overall improvement in the second and third quarters of next year. More two or three line brands will have to face the problem of pformation.

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