ADI Nike'S Price War Hits China'S Low End Market

　　 According to reports, international brands Nike And Adidas are considering lowering the price of goods into China's low-end market. Nike plans to expand sales to $40% to $27 billion by 2015, and Adidas plans to sell more stores in two or three tier cities at lower prices.

In 9~11 2009, Nike Sales in the Greater China region decreased by 3% compared with the same period last year, while the third quarter sales of another sporting goods giant Adidas continued to grow by 7% in the first two quarters of last year, and the two big giants who once made great progress in the field of sports brand are now defeated in the Chinese market.

In the face of China's huge market cake, the international sports brand will not easily let go. With the arrival of the peak season of sporting goods sales, the discount activities of international sports brands are beginning to prevail. The sharp reduction of prices has stimulated the desire of many consumers to a certain extent. It can be seen that international brands have begun to shake the lever of price.

300 yuan Nike shoes coming

At present, the "perfect price" of footwear in the two or three tier cities is between 170-250 yuan, while Nike (as the first international market share). motion The price of shoes sold in China is 400-1000 yuan, and the difference between the 150 yuan is the main reason that hinders their business from entering the two or three line market. By contrast, at present, China is actively focusing on the development of several major domestic brands in the two or three tier cities, and its pricing basically fluctuated around 50-70 yuan in the range of 170-250 yuan.

However, if Nike achieves the lowest price of footwear products by 300 yuan, even though it is still slightly higher than the "perfect price", the idea of "buying more than 50 yuan for a pair of Nike shoes" is likely to drive the consumers who buy the brands of high-end sports shoes such as Lining, Anta and XTEP to take the lead in the shift.

If Nike decides to sell low priced products in China, the average high priced domestic brands, such as Kappa and Lining, will be most affected in the short term, because some consumers in the two or three tier cities may choose Nike instead. Part of the brand image of the general domestic brands or will be squeezed out of the market. The annual marketing budget of 350 million -5 billion small and medium-sized brands is unlikely to compete with Nike, Lining and Anta in the whole country (these companies spend more than 1 billion yuan a year in marketing costs). Despite a heavy blow in the short term, domestic brands with considerable marketing budget should be able to resist Nike, which is "low", and Anta is the first choice.