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Nike Cuts Sales And Exclude XTEP

2010/7/16 21:41:00 55

On July 16th, XTEP executive director and chief financial officer He Ruibo pointed out that in the second quarter of this year, the sales growth of the same store in its distribution outlets was higher than that in the first quarter, and the annual growth rate of same store sales was in the middle unit figure.

He also said that he did not think that the two or three line city would be the main direction of Nike. If Nke made the deployment, XTEP would only regard it as a competition of local brands.

According to Hongkong media reports,

XTEP

(1368) executive director and chief financial officer He Ruibo pointed out that this year

The second quarter

The sales volume of the same store with high number of units is higher than that of the first quarter, while the annual growth rate of same store sales is in the unit figure.

He also expects that the average price of the products will increase in the next spring order, and the clothing products are expected to increase by 5 to 10%.

He also expects that in the next 3 to 5 years, the mainland's overall market will grow from 15 to 20%, and it is confident that the company's development will outperform the market.

Earlier, the industry engaged in production in the mainland raised wages for employees. He pointed out that production workers in factories are the main selling objects of the company's products.

When their wages increase, the impact on XTEP is positive.

At present, only 50% of XTEP's clothing products and 10% footwear products are self produced, while the rest are produced by outsourcing, and wages only account for 5% of the cost of sales.

For earlier

Nike

With the intention to launch the footwear products priced from 200 to 300 yuan in the mainland and enter the two or three line city market, he bluntly said that Nike has been developing in the mainland for more than 10 years, and has always been aware of the demand of mainland consumers for high-end products. It is also clear that low-end products are not the source of profits for Nike. Therefore, it is not considered that the two or three tier cities are the main direction of Nike, nor will they sell too many products at the preceding price.

If Nke makes the deployment, XTEP will only regard it as one more local brand competition.

At present, local brands have more advantages in two or three tier cities. On the one hand, the market is more familiar with local brands. On the other hand, the relevant brands have already had a sound distribution network in related markets.