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    CONVERSE Has Become A Secret Weapon For Nike To Make Money.

    2015/4/11 16:40:00 86

    CONVERSENikePerformanceDriving Radar

    One thing is for sure, that is, CONVERSE, which continues to increase revenue, is more popular with Nike shareholders than ever before.

    The overall growth rate of Nike is faster than that of Nike brand, and the reason for this difference is CONVERSE. As of February 28th, CONVERSE's revenue in the last quarter reached $538 million, an increase of 28% over the same period last year. Therefore, The Motley Fool, a well-known US investment website, describes CONVERSE as a driving radar that lurks inside Nike.

    For the substantial growth in CONVERSE's performance in the last quarter, Nike chief financial officer Don Blair said, "an objective reason is that some shipments in the fourth quarter are just ahead of this quarter. Of course, the key is to benefit from the rapid growth of North American performance. In some parts of the European market, we have launched more direct channels, and this direct consumer oriented approach has continued to grow.

    In addition, CONVERSE celebrates the 98 year marketing campaign of the Chuck Taylor All Star series, which has brought an important growth point for them. "We have invested a lot in infrastructure and marketing costs, and CONVERSE has gained huge market demand." Don Blair explained that from the data point of view, the effect of these inputs is more obvious.

    Not only that, CONVERSE's recent growth is also related to brand litigation.

    Over the years, various plagiarism in the market CONVERSE The behavior of canvas shoes is very few, and CONVERSE, which has endured for a long time, finally made clear its attitude last year. In October 2014, CONVERSE filed a trademark infringement lawsuit against 31 competitors, including H&M, WAL-MART, FILA and other well-known brands. CONVERSE says they illegally use Chuck Taylor classic. Gym shoes The core design elements, and mass production, distribution or sale of these cottage products.

    In the face of large-scale plagiarism, Nike has tried to avoid lawsuits in the past few years, sending out warning letters only. However, the more than 180 warning letters sent out in the past did not bring any effect. Nike and CONVERSE had to file a lawsuit against the federal court of New York.

    Facts have proved that CONVERSE takes Law The channels for litigation are correct. According to the February lawsuit report, some defendants have voluntarily reconciled with CONVERSE and stopped infringement, including H&M, Tory Burch, Zulily and Ralph Lauren4 famous brands. Among them, the US fashion Ralph Lauren not only agrees to make economic compensation, but also destroys all the sports shoes, production template tools and related marketing information related to infringement.

    This progress will inevitably lead to the growth of CONVERSE's demand and the enhancement of brand influence. More importantly, this tort lawsuit will solve the major problems that plagued CONVERSE for more than ten years, and enhance confidence in the brand can not be ignored. Of course, up to 31 cases have not been completely ended, and there are many complicated and intractable cases. It is hard to tell how much the litigation result will bring positive impact on CONVERSE.

    In 2003, when Nike decided to buy CONVERSE at a price of $305 million, most people were not optimistic about the prospect of CONVERSE's acquisition. But everyone knows that Nike's acquisition of CONVERSE focuses on the resources and channels of basketball players.

    Before 1980s, because of the lack of competition in the basketball market, CONVERSE was once the dominant NBA player in the United States, and CONVERSE basketball shoes on the playing field can be seen everywhere. But not long after, brands such as Nike, Adidas and Reebok were rising. The old CONVERSE, who had known for a long time, had not enough time to react, and was thrown away in product technology and design.


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