Nike In Hua La DA And Adi Gap Campaign Brand Second Tier Market

After gaining a foothold in China's first tier cities,

And other international sports brand enterprises make some efforts to attack the two or three line market, thereby driving the rapid growth of performance.

Nike

Us time 27 released 2011 fiscal year results (May 2010 ~2011 May), in the Greater China market, Nike realized sales revenue of $2 billion 60 million, an increase of 18% over the previous year, excluding exchange rate factors, an increase of 16% over the previous year, and the pre tax profit of 777 million US dollars, an increase of 22% over the same period last year.

For substantial growth in performance,

As a result of the increase in retail outlets and the increase in single store year-on-year sales, the Greater China region had a larger increase in the fourth quarter of fiscal 2011, and sales of Nike's main products such as jogging, sportswear and men training all achieved two digit growth.

Nike's revenue in the fourth quarter of the 2011 quarter of the Greater China market was $564 million, an increase of 21% over the same period last year.

Analysts told reporters of first financial daily.

The recent growth in China's market performance has entered the two or three line market with the advantage of domestic sports brands. The survival space of domestic brands will be further compressed.

Another multinational sports brand running in China

The same quarter grew strongly in the first quarter of this year.

Adidas announced its first quarter results in early May this year, excluding the exchange rate factor. Its sales in the first quarter of this year increased by 36% to 284 million euros, ranking the first among all Adidas group markets.

Act as

One of the largest dealers in the Chinese market.

(01880.HK) business data confirm the rapid growth of pnational sports brands.

BELLE international sells both Nike and Adidas first-line sportswear products, and also sells Lining, KAPPA and other second-line sportswear products. In June 30, 2010, the number of Nike and Adidas stores operated by BELLE was 2397. As of December 31, 2010, the total number of these stores increased to 2817, increasing by 420; meanwhile, the number of second-line sportswear brands increased from 729 to 819, with an increase of only 90.

Market watchdog Ma Gang said.

The market share of the first tier cities in Beijing and Shanghai has been consolidated, and more and more new stores are now distributed in the two or three line market.

Taking the data disclosed by BELLE international as an example, as of December 31, 2010, the Shanghai centered market in East China has opened 89 Nike and Adidas stores, with a total number of stores reaching 529, and the number of new stores and total number of stores in the market is the highest. However, the number of new outlets in the central China market is 47, so that the total number of Nike stores and Adidas stores in Central China reaches 231, and the number of new stores has increased by 25.5% over the same period, which is the highest in the market.

Ma Gang thinks that

The reason why the two or three line cities in which the domestic sports brand has the advantage is to have a rich product line and a larger price range to meet the needs of different consumers.

Analyst Chen Shixin also pointed out that the consumption level of some people in the two or three tier cities has been improved, and the price difference between pnational sports brands and local sports brands has narrowed, which is conducive to the entry of Nike and Adidas into the two or three tier cities.

Local brand

(02331.HK) revenue grew by 13% to 9 billion 479 million yuan in 2010 compared with the previous year. The performance of the store has already met the ceiling by increasing the number of stores. Ma Gang said that in fact, not only Li Ning Co encountered such problems, but other domestic sports brands also faced the same problem. How to turn outward expansion into introspective growth and increase the output efficiency of existing stores will decide whether domestic sports brands can narrow the gap with pnational sports brands.

According to the data released by Nike, future orders are still more optimistic. Nike's global orders for products shipped from June 2011 to November amount to US $10 billion 300 million, an increase of 15% over the same period last year.