July 15 hearing, it was recently reported that international brands Nike and Adidas are considering entering China through lower commodity prices, low-end market. Nike plans to expand the sales of 40% in 2015 to 27 billion U.S. dollars, Adidas plans to lower prices more stores in the second and third tier cities to carry out the sale. 9 November 2009, Nike sales fell 3% in Greater China; and other sporting goods giant Adidas sales in the third quarter of the year in the last two consecutive quarters of negative growth, further reduction of 7% year on year, was developed in the field of sports brands of the two giant duck to water, but now it defeated in the Chinese market.
In the face of this huge market of China a large cake, the international sports brand is clearly not letting go. With the arrival of sporting goods sales season, the international sports brand discounts has become popular, the price significantly lower to some extent, stimulated the desire of many consumers to buy, which can be seen in the international price of the brand has begun to swing lever.
300 arrival of Nike shoes
Second and third tier cities in the current footwear "perfect pricing" in the 170-250 yuan, and Nike (as first-line market share of the first international sports brands) in China, the price of shoes sold per month in the 400-1000 , the spread between the two is the 150 can not hinder its operations into the second and third important reason for the market. In contrast, the current second and third tier cities are actively focused on expanding the market in several major domestic brands, the pricing is basically the range of around 170-250 dollars, plus or minus 50-70 million.
However, if Nike will do the minimum price of footwear 300, though still slightly higher than the "perfect pricing", but "you can spend 50 yuan to buy a pair of Nike shoes" is very likely driven by the idea that Buy Now Li Ning, Anta, special steps, such as domestic consumers of high-end sports shoes brand is transferred first.
If Nike decided to sell lower-priced Chinese products, the average price of domestic brands, such as high short-term Li Ning, Kappa, and the most affected, because the second and third tier cities, some consumers may be forced to choose Nike. Part of the brand image of domestic brands in general may be out of the market. 3.5 billion annual marketing budget of small and medium sized brand -5 million in the country and less likely to Nike, Li Ning and Anta (these marketing costs each year over 10 billion) competition. Despite the short term may suffer a heavy blow, but with substantial marketing budget should be able to withstand the domestic brands, "reached the" low-end market, Nike, Anta is a choice.
Remain within the sports brand, "darling of the"
But in second and third tier cities, the relatively young age, or will be more people around the impact of the pursuit of their individual consumer attitudes are still the mark of the traditional left. At the same time, because of the relatively limited spending power, how to lower the cost of their own personality and gain the pursuit of a better life, will be eager to win this part of the most recognized brands in consumer endeavors.
Currently Anta, special steps as the representative of the main domestic brands are still on the second and third tier markets. "Some small cities in the country, you just see a Nike store, around the same time there will be 2-3 ANTA and special steps." Walsall Venlo Advisory apparel industry analysts that the beam, second and third tier cities are domestic brands The main battlefield is the cornerstone of business. If you feel that there are channels for international brand sinking means the price of domestic brands, marketing, "resistance" will be quite intense. Rush under the International brand may not be accounted for cheap.
In addition, the domestic sports brand at this stage is still "momentum rainbow." According to statistics, in the end after another major domestic sports brand 4th quarter of 2010 will be in order, average order Xtep the highest growth rate, reaching 23%, China ranked second trend, up 20%, ranked third Anta , 19%, Li Ning, came in fourth, the proportion of two-digit growth.
"Received by the four major sportswear suppliers in the fourth quarter of 2010 have increased sales orders are a common trend." Tai Fook Securities Research believes that distributors of this phenomenon reveals sports apparel sales on the domestic outlook continues to confidence.
And because of this, that "never stop" Anta, "I can infinite possibilities," the Peak, "brave to do their own" 361 degree, it may be increasingly developed in online shopping, and international sales channels, brand entities also been sinking today, is still popular in the second and third tier cities, occupy a market share can not be ignored.
In the long run, this type of value proposition must be further refined and more accurate to lock a part of second and third tier cities, has more in common consumers. As a result, domestic brands can really lay their own niche market, and with the international brand "close combat", the share of their own piece of "cake."
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