Expansion In China Accelerated Encountered Resistance Kee Di China Army Sniper - Nike, Adi, Li Ning

China's sportswear industry competition is heating up

. Analysts said the global hegemony Nike (Nike) and adidas (Adidas), while the expansion in China, some local companies not far behind.

Over the years, Nike and Adidas a virtual monopoly on the Shanghai and Beijing, China's major coastal cities, sports apparel market, Li Ning (Li Ning) and Anta (Anta) and other local sports franchise will occupy the second and third tier cities. But now both sides are heavily into China's domestic market.

According to Adidas introduced its Sports shoes Sales shops (shops or consignment shops) is 2-3 per day, the speed increase. Nike also in the rapid expansion. For both companies, China has replaced Japan to become their second largest after the U.S. market.

This growth to some extent also explain the Chinese sports goods retailer Bao Sheng international (Pou ShengInternational Holdings) and Xtep International (Xtep InternationalHoldings) last month, the first day in Hong Kong Listing Suffered when cold. The two company's headquarters are located in Southern China, and many Chinese footwear manufacturers, they are well-known brands from the OEM for the start.

The first few days, two stocks have fallen below the issue price, and continue down. IPO market in general lack of enthusiasm is one of the reasons leading to their decline, while the investor in an increasingly competitive business environment in China is deeply worried about the prospects.

BNP Paribas (BNPParibas) in Hong Kong, China research director Irwin Sanft (ErwinSanft) said that some overheated the sportswear section. He pointed out that Olympic Games The market can not continue after the current sales momentum, and market competition is fierce.

Bao Sheng International is a footwear company and Yue Yuen Industrial (Yue Yuen IndustrialHoldings) of its subsidiary, distribution Adidas and Nike and other brands, but the latter two are developing more of its own shops. Wednesday, shares closed at 2.12 Sheng Bao Hong Kong dollars (27.2 cents), up 0.02 Hong Kong dollar, but far below the issue price of 3.05 Hong Kong dollar.

Located in Fujian step has its own special brand, but also Disney Sports series (DisneySport) dealer. The Carlyle Group (CarlyleGroup) holds a minority interest in special step. Special steps listed in the June 3 issue price of 4.05 Hong Kong dollars per share. Wednesday, Xtep shares rose 0.06 Hong Kong dollars to 2.72 Hong Kong dollars.

Olympics, China increasingly competitive sportswear market will continue to grow, but the pace is expected to slow. Sports brand in Shanghai consulting firm ZOUMarketing forecast, from 2009 to 2012, China's sportswear market will grow 20% annually, the value will reach 12 billion U.S. dollars. In 2006, the Chinese sportswear market worth 3.8 billion dollars in the three years ended 2009, the average annual growth of 23%.

Recently, many Chinese sportswear brand advertising during the Olympic Games have suffered restrictions on the operation. June 3, Beijing Olympic Organizing Committee said, "recommended" Chinese media does not publish non-Olympic sponsors and Olympic-related advertising. Adidas is the official sponsor of the Beijing Olympics.

This makes Li Ning of China sponsored national television sports presenter apparel trade blocked, the transaction would have let the brand Li Ning during the Olympic Games are a lot of opportunities on the mirror. Since BOCOG released the statement, Li Ning's share price fell by 23%, Wednesday to close at 16.84 Hong Kong dollars.

Advertising information of the South China (South ChinaResearch) analyst Zhu Jiaxuan, said Li Ning, the stock will rebound, because the Chinese brand Li Ning continues to occupy a leading position in the market, while institutional investors are willing to buy the market leader stock. Since April, he has been to the Li Ning Company "buy" rating, given 12-month target price of 26.54 Hong Kong dollars, compared with 58% higher than the closing price Wednesday.

DBS Vickers Securities (DBS Vickers) to Li Ning's target price of 28 Hong Kong dollars, the company said Li Ning's wholesale sales and same store sales have achieved strong growth. AliceHui analyst wrote in the June 30, Li Ning Company's fundamentals will not have long-term, major changes.

Some analysts bullish on the other a local sports apparel manufacturers in Hong Kong-listed China Dongxiang (Group) Co., Ltd. (ChinaDongxiang Group), the company has Italy Brand Kappa in mainland China and Macau right to use the brand.

by: gaga

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