China Sports Shoes Enterprises Counterattacking Giant Low Price Strategy

China Sports Shoes Enterprises Counterattacking Giant Low Price Strategy

How to make some consumers obtain self-individuality pursuit with lower cost and simultaneously maintain the consumer demands of the middle class, in the face of Chinese enterprises catching-up declaration, the counterattack from Nike and Adidas has come.

Visiting monks give better sermons, it seems that all foreign brands will have a mythic process after entering China. When Coca Cola entered Chinese market, at one time it was presented as precious gift to friends on the New Year's Day, but now who would think to drink Coca-Cola is a worthwhile thing to show off? Perhaps, under the impact of domestic brands, Adidas and Nike will return to normal brand identity sooner or later. But just because of this mythic and elevated process, so when Nike and Adidas decide to cut prices and enter the second and third-tier cities, and confront with domestic brands, they have had a groundless big strategic advantage.

Sports apparel is mainly consumed by young people aged around 16-35. In the first-tier cities, this group of people has more rich and mature brand recognition capabilities. But in the second and third-tier cities, young consumers' recognition on a certain brand is influenced to a deeper extent by people around them, and their pursuit on self-individuality still have the imprint of traditional consumption concept. Compared with the first-tier cities consumption ability, how to make them get the self-identity of value concept is a direction that can win the recognition from this consumer group.

When Chinese sports brands worried Nike and Adidas gave up tremendous product premium that brought by brand effect and went down the god world with getting off their high horse, the SLVR series products of Adidas had stationed in Adidas Global Brand Center in Beijing Sanlitun. The pricing of SLVR series products is as about three times as Adidas products, and the price of Y-3 series that mentioned previously is as more than ten times as normal sport products. That is because the consumption ability of Chinese people is increasing continuously, nowadays, China has already exceeded America and become the world's second largest consumer of luxury goods. LV, Chanel, etc. have been sinking to Chinese second and third tier cities.

Nike and Adidas products have been in the position of high-end brands for a long time, which has brought enough product premiums for them, but in the process of their gradually returning, these product premiums will become advantages for them to cut prices. The 2009 Four Quarters Earnings Report released by Nike in 2010 shows that its pretax profit in China is up to 40.3%, but in comparison the pretax profit of North American market is only 24.2%. 40.3% pretax profit has left sufficient price reduction room for Nike.

In the UBS report, generally speaking, the scale of Chinese sports market in 2010 is expected to reach 69 billion Yuan, and in 2020 the scale of famous brand sports market will reach 297 billion Yuan. In the face of such large pieces of cake, the competition storm between Chinese and foreign sports brands will come on.

Above provided by SelectChina.com, and find more information on China Shoes Manufacturers / China Shoes Products.

POST COMMENT

Improving Sports Performance With Chiropractic Care Top 6 Essex Wedding Venues Picking the Right Boat for You Shopping & Transport In Lagos Saving money by using Smart Car for Transportation Get Fired Up for Intense Exercises through VPX Sports Anarchy Plans4boats DIY Boats Plans By Daniel Holden Review Recycled Glass – What happens to it? Steamboat Springs Hotel Deals A Sport for All Ages The Sport for the Big Boys Sports Betting Champ Scam or The Real Deal? Sports betting champ: Your Reliable Betting Buddy