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    Nike Has Become The Most Valuable Brand In The Global Fashion Industry.

    2016/6/1 21:31:00 31

    NikeFashion IndustryBrand Value

    From products, stores, design to marketing, Nike is not necessarily better than other brands, but Nike's cleverness lies in its mastery of trade-offs.

    Forbes (Forbes) recently released the world's most valuable brand list in 2016.

    In the field of fashion industry, sports brand Nike has become the most valuable brand in the global fashion industry.

    This is Forbes's list of brand value in sixth years.

    Besides Forbes, agencies including BrandZ, Interbrand, and British consulting firm Brand Finance regularly issue brand value reports and lists.

    But the calculation methods are different.

    Forbes's rule of "brand value list" is based on the profit of each brand in the past three years and multiplied by a percentage coefficient according to the brand's status in various industries. The adjusted profit is multiplied by the average price earnings ratio of the past three years, and finally the brand value is calculated.

    That is to say, brand value is not positively related to company performance, market value and sales volume.

    It is related to whether consumers are willing to pay a higher price and whether they have a stronger desire to buy.

    Online search, all kinds of articles about Nike emerge in endlessly.

    I am afraid that this Brand Company is not recognized as it is today.

    Looking back at the trend of this brand of predators in recent years, from products, stores, design to marketing, Nike is not necessarily better than other brands, but Nike's cleverness lies in its mastery of trade-offs, instead of blindly adding to it, instead of blindly pursuing all sizes, so as to create a strong brand positioning and style, becoming the most valuable brand of NO.1 in fashion industry.

    Starting from the 2012 year of the year, Nike continuously divestiture various assets, with a view to concentrating more on business with high potential growth opportunities.

    In 2012, Nike2.25 sold its brand Umbro for $100 million, while it spent 565 million dollars when it bought the brand 4 years ago.

    Almost at the same time, it also sold its footwear brand Cole Haan for $500 million to Apax Partners, a private equity fund company.

    To abandon two brands, Nike put more energy into the development of Nike, Jordan, Converse, Hurley and other brands.

    Nike's product line has been expanding, and the new product of the season is also most concerned by consumers.

    But until now, footwear revenue still accounts for more than 60% of Nike's total revenue. Although Nike has expanded diversified products such as golf, clothing and sports equipment since 2000, Nike is quite focused on pursuing "lighter and softer shoes".

    In 1987, the Air Max air cushion technology was born. This kind of slow vibration technology has become the main source of Nike growth, and its annual sales volume is more than one billion US dollars.

    In the past 3 years, Nike's strong financial performance has been largely attributed to the high margin products, which are the star shoes of Flyknit series and Jordan and Kobe launched in 2012.

    Today, the Jordan brand has been selling well for 30 years, and the Flyknit Lunar running shoes have also been developed into the third generation. Flyknit technology has been applied to every product line from soccer shoes to running training.

    These thousands of shoes become the biggest revenue growth engine of Nike.

    In March of this year, Nike launched 11 new types of shoes. Flyknit technology basically covered all footwear products, including Nike company's Nike HyperAdapt 1 which was able to automatically tighten the shoelaces on the shoe's surface and adjust the tightness by pressing buttons on the sides of the shoes for ten years.

      

    Nike

    It is adjusting its global store strategy and opening more direct stores. At present, Nike has 7 flagship stores, more than 300 retail outlets and more than 6 thousand shopping malls in China.

    In the 2015 fiscal year, Nike's revenue in China reached $3 billion 67 million, an increase of 18% over the same period last year. The growth was mainly driven by the strong driving force of Direct to Consumer, which accounted for 27% of total revenue.

    Nike requires every store to be as meticulous as possible. Under the premise of standardization, what kind of business circle is the main group?

    While dealers still have no way to do the same as self run shops, Nike hopes to supplement the official website Nike.com with the function of electric business.

    Nike's marketing model has always been in the lead in the industry.

    First, Nike built the world's largest online community of sports enthusiasts with Nike+; two, Nike has the ability to cut into all kinds of sports: in addition to mainstream basketball, soccer and running, Nike also involved in niche sports such as golf; three, Nike has perfect e-commerce.

    Digitization

    Service platform.

    In the face of the impact of the digital wave, Nike is also a quick response, quickly pulling aside all kinds of marketing agents before cooperation, reducing the cost of traditional media advertising, and forming internal teams to take charge of social media affairs.

    In the three years since 2010, Nike has cut 40% of its advertising costs in television and print media in the US.

    According to its latest earnings report, Nike official website e-commerce sales rose 50%.

    Since the birth of the 1964 year old brand, Nike has been one of the best sports brands in the world, largely thanks to its brand design.

    Nike's product development is not aimed at collocation and trend, but is athlete oriented.

    This is consistent with the design rule, because athletes are much more athletic than normal.

    Consumer

    Any product that can meet their needs is also applicable to ordinary consumers.

    This rule applies to the research and development of all Nike products.

    You will feel the trade-offs of Nike in many places.

    But it is wonderful that, from the results, it seems that Nike only focuses on the movement itself, but does not know why it drives and affects the trend.

    For example, the introduction of Flyknit technology is to solve the problem of self weight of shoes, but it appears frequently in streets and lanes on street pads, becoming a fashion.

    In a sense, this trade-off has built the attitude of Nike brand.

    For Nike, as long as you want to exercise, enter the store to buy a dress or a pair of shoes, its purpose is achieved.


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