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Tuesday, 17-Jul-2012 22:09 Email | Share | | Bookmark
Brand shoes, Nike cheap penetrate the feasibility of the second

 
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We believe that Nike, the current pricing strategy in China and their business can not break into the second and third tier cities, domestic brands have aggressive expansion in these cities. In this report, we consider Nike for the second and third tier cities, will launch lower-priced footwear products, as well as the potential impact of the initiatives on the Chinese sportswear industry. The unique model to assess the ability to absorb the cost of decline. And manufacturers in the industry to explore, we have created a unique value chain model to view the decline in ability to absorb the cost of the value chain. Our conclusion is that Nike has the ability to set the price of footwear products in the very competitive 300 yuan / double. We also cite the instance of the two companies successfully penetrate into the high-end and low-end market. Short-term impact: high average selling price of domestic brands, or who are most affected.
We believe that: if Nike decided to lower sales price in China, the high average selling price of domestic brands such as Kappa and Li Ning, the short term are the most affected, because the second and third tier cities, some consumers may turn to select resistant grams.
Medium-and long-term impact: domestic small and medium brands fear of being hit.
We believe that if Nike can be successful penetration into the second and third tier cities, part of the brand image of domestic brands will be out of the market. We believe that the annual marketing budget of 350 million -5 million small and medium-sized brand is unlikely to compete with Nike, Li Ning and Anta in the country. The short term may suffer a heavy blow, but we think that domestic brands should be able to withstand the considerable marketing budget reached the "low-end market, nike shox for cheap Anta is still our first choice in the industry.


Monday, 16-Jul-2012 02:51 Email | Share | | Bookmark
Getting the cheap nike air jordans activies for the winter by Si

 
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