UA Basketball Shoes Are No Longer A Threat To Nike. Nike'S Sales Will Rise.

　　 Nike Announced in Amazon After the launch of the new direct selling mode with Instagram, in early July, Wall Street analyst told the US brand The move is optimistic and expects its share price to rise sharply this year.

According to the world clothing shoes and hats net, recently, Nike has been favored again. In July 21st, Jay Sole, an analyst at Morgan Stanley, a well-known investment bank, said that the sales of sports giant brands will increase significantly in the next few months. Nike's rating rose from holding to wait-and-see, and the target share price rose from $56 to $68, indicating that its growth rate will reach more than 17%.

The reason for this is that the analyst's judgment is based on three considerations. The most important factor is the innovative products Air VaporMax, which are sold in a wide range of styles and are expected to bring in US $1 billion in sales. Second, the retro fashion craze is fading. Last year, the best selling Adidas Stan Smith and SuperStar sales will fall. In addition, analysts stressed that the Under Armour products that had swept the market could not threaten Nike.

"We believe that the window period for buying Nike stocks at the bottom of the cycle is coming to an end," Morgan Stanley wrote in a report Wednesday. "Nike's new products, such as Air VaporMax, and Nike's market capabilities are improving faster than expected, and will reverse the downturn they experienced in the past 18 months."

Nike's key innovative product this year, Air VaporMax

Over the past year and a half, American brands have experienced a slowdown in growth, downgrading and share price setbacks. During this period, investors worried that Nike, which did not have any breakthrough products in almost two years, had lost its innovation advantage.

Until March 26th this year, Nike ushered in the annual Air Max Day. The main shoe Air VaporMax was officially released. These seven years of research on air cushion innovation finally emerged as a "timely rain" attitude, which is considered to be the key to reverse the decline of the US brand at the product level.

Now that shoes have been on sale for nearly four months, the official statement on the sale of Air VaporMax has been reported by commercial media CNBC. Nike's only claim is that consumers' response to this product is "very positive". Analyst Jay Sol said after the exchange with the news makers and retailers in the footwear industry, it is expected that this innovative product will bring in 1 billion US dollars in sales. At the same time, he estimated that Nike's North American market sales increased by 5% over the next quarter, and the market's concerns about the brand are decreasing.

On the other hand, the trend of retro fashion in the past is fading away, and the trend of sports shoes consumption market is changing quietly.

Last year, Adidas's sports Street Series Adidas Originals business grew by 45%. The brand's Retro footwear Stan Smith and SuperStar became the sales champion, driving its North American market share to double. This trend has caught Nike, who is biased toward sports, unprepared.

Just as fashion trends are changing rapidly, Jay Sol said, in fact, the trend of retro sports shoes has been reduced this year. He even used the word "aesthetic fatigue" on consumers. Although the new trend is not clear, including Nike Air VaporMax and Adidas Ultra Boost, there will be a breakthrough in a shoe style that pays attention to lifestyle and technological innovation.

In addition to the market trend, analysts especially mentioned the US upstart brand Under Armour, "the market threat brought by Stephen Currie products is disappearing."

In 2013, when Under Armour signed a contract with Currie, he took the lead in Nike. With its selling of its boots, the brand has increased its share of the American sneaker market that it hardly existed before to 10%, or even surpassed Adidas's promotion in North America. However, due to the lack of breakthrough in product technology and shape design of the three generation of war boots, and the cooldown of its performance and exposure, Under Armour can only harvest a bad sales performance.

Analyst Jay Sol stressed in the report that sales of the company had dropped by about 60% compared to the same period last year. In addition, another factor that Under Armour is unlikely to pose a threat to Nike is that this new brand had gained market share by selling its boots at a slightly lower price than Nike's similar products. Now, the latter has solved this problem by lowering prices.

Although Under Armour can not become a market focus in the short term, it is noteworthy that the US brand specializing in professional sports is trying to introduce a sports life product category to cope with the market trend. Not long ago, they found the rapper A$AP Rocky signing the endorsement. The boy who grew up in Harlem Yu District of New York has a strong market appeal. It is reported that Under Armour will also dig more fashion designers to expand the product line.

Obviously, we can't rely on curry and professional basketball shoes to beat the giant. Under Armour is trying to win the market through pop singers and life products. This is a challenge that has to be accepted for a sports brand without a lifestyle gene.

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