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Nike 300 Yuan Low Dive To Fight Two Or Three Line City

2010/7/23 14:41:00 45

"If

Nike

Will you buy Lining for shoes at a price of 300 yuan?

Nike

At headquarters, the wind will be released, or cheap shoes will be launched in the Chinese market for the two or three line market.

The capital market expressed concern.

In the early July,

Nike

After the news of pushing cheap shoes in the mainland, the share prices of several domestic sports brands listed in Hong Kong fell.

UBS Securities lowered the rating of mainland sporting goods shares to XTEP, Anta,

Lining

The ratings were lowered from "buy" to "neutral".

Some analysts say that

Nike

We are anxious to adjust our strategy in China, including lowering the price to grab the market share of domestic brands.

For Lining and Anta, the real skirmish will start.

300 yuan Nike shoes?

The news that Nike plans to push shoes at low prices in the mainland is groundless.

In June 23, 2010, at Nike's 2010 fiscal year conference call, Citigroup analysts threw the problem at the end of the year.

Nike

Brand President Charlie Denson (Charlie Denson).

The latter responded that the company did plan to enter China's second tier, three line or even four line cities, and will launch some other brands when considering the launch of NIKE series of low price products at different prices.

Just before the conference call, Nike just announced a "Five Year Plan" in May. It is estimated that the annual income of the Greater China region will grow by more than 10%.

The analyst and Anta dealer Ma Gang saw the plan for the first time, and they were a little surprised.

From February 2009 to February 2010, the income of Nike Greater China was 1 billion 277 million US dollars, and it also decreased by 4% compared with the same period last year.

"It is absolutely a radical plan to propose an annual increase of 10%."

Ma Gang said.

At that time, he thought that

Nike

There are bound to be some new initiatives.

He wrote in his blog, for example, Nike will launch the corresponding low price products for the second and three line markets, and grab market share from domestic brands.

Lining

It's a terrible thing to do with Anta and all sporting goods manufacturers. "

"If Nike insists on its current pricing strategy, it will give the world one of the fastest growing markets of sports apparel to Anta and Lining."

Liang Yuchang, an analyst at UBS Securities, told the China Daily newspaper that the remarks made by Nike executives at the conference call confirmed his previous judgment that the listing of low price Nike shoes might be faster than they expected.

He even worked out through careful cost accounting.

Nike

The price of cheap shoes is 300 yuan / double, which is 25% lower than the current price.

According to the "300 yuan plan model" provided by the UBS team, the supplier will reduce the operating cost by 9% and the production cost by 26%. Nike and its dealers will also have to reduce the operating cost by 20% and 36% respectively.

Liang Yuchang believes that for these purposes, Nike may shift more factories to inland China and reduce costs in product design and procurement.

Liang Yuchang said, though

Nike

The "low price card" will reduce the profit of its suppliers and their suppliers by about 21%, but the rapid growth of sales volume is expected to offset the decline in profits of all parties.