"Five-year plan" of Nike

Expressed concern about the capital market. Early July, Nike cheap shoes to be pushed in the Mainland, the news spread, several listed in Hong Kong share prices of domestic sports brand enterprises that crashed down. UBS Securities lowered the rating of the nike air max 90 mainland sporting goods stocks will be special steps, Anta, Cheap Nike Air Max 1's ratings are "buy" down to "neutral."

Some analysts said that Nike was eager to adjust the strategy in China, which have lower prices to grab market share of domestic brands. For Li Ning, Anta, the real encounter or to start.

300 Nike shoes?

Cheap Nike shoes to be pushed in the Mainland, it is groundless news.

June 23, 2010, Nike fiscal year 2010 conference call, Cheap Nike Air Max analysts put the question of shifting of the Nike Brand President Charlie Denson (Charlie Denson). The latter responded that the company does have plans to enter China's second-tier, three-or even fourth tier cities, and the introduction of low-end price NIKE series of different products, considering buying or introduce some other brands.
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Just before the conference call, Nike had just announced in May a "five-year plan" is expected in Greater China revenue growth of 10% or more. Analysts, Anta Magang dealers see this plan the first time, feel a little surprised. Because from February 2009 to February 2010, Nike's revenue in Greater China and 12.77 billion U.S. dollars, also fell by 4%. "Now the proposed increase of 10%, this is a radical plan." Magang said.

He was to believe that Nike will certainly be some new initiatives launched. He wrote in his blog, for example, Nike will market and the third line for the second-tier market low-priced products accordingly, from the hands of domestic brands to capture market share, "This is Li Ning and Anta, and all sporting goods manufacturers are a terrible thing. "

"If nike air max 24-7 insist the current pricing strategy, is equivalent to the world's fastest-growing sportswear market, Li Ning, Anta and surrendering one." UBS Securities analyst Liangyu Chang to the "China Business", told reporters that anti- grams of high-level comments on the conference call before the judge of his firm, cheap nike shoes may be faster to market faster than they expected.

He even detailed costing, calculate the price of Nike shoes, low price - 300 yuan / double, than the current price drop of 25%.

Given by UBS team "300 yuan planning model", the supplier shall reduce operating expenses by 9%, the cost of production down 26%, Nike and its distributors have the operating expenses were reduced by 20% and 36%. Liangyu Chang believes that these aims, the Nike factory may shift more to China's interior, and in product design and procurement aspects of cost reduction.

Liangyu Chang said that although the nike air max 2009 slogan "cheap" brand will make the unit themselves and their suppliers profit fell about 21%, but the rapid growth of sales of all units is expected to offset the decline in profits.

Press on this matter to the Nike (China) confirmation, the other responded that they have not yet mastered the information.