subject: Nike the secondary and tertiary markets plan [print this page] Nike the secondary and tertiary markets plan
Despite the low price strategy is also convinced that Nike is inevitable, but that Nike Magang play this card will have more consideration before, that prices will result in damage to the Nike brand, which it lost a nike air max 24-7 number of The most loyal users. "For example, a city of the middle class out of the door and found a brand of shoes are filled, he will not stick to their choice?"
Liangyu Chang also believes that the Nike's low-cost strategy is facing at least three obstacles. One of Nike's suppliers to produce more shoes, but while maintaining a low level of profitability, the second is how to mobilize additional Nike dealer dealership in the second and third tier cities initiative and the third is how to launch low-cost product without China's high-end of its image.
In his view, price and brand is not born is standing on the opposite side. Like Best Buy in Shanghai, 199 yuan shelves arrayed with Nokia low-end machines, but also Shanghai's top white-collar workers are willing to spend 6,000 yuan nike air max 2009 to buy the latest wave of the Nokia mobile phone. This depends on the company's ability to use diverse product portfolio to meet different market segments.
Magang appears in the Nike headquarters "timely" release of low-cost wind, consumers want to test the various partners and acceptance. If the resistance is relatively high in all aspects of Nike brand portfolio or to intervene in the way through low-cost market to incorporate over the Converse and Umbro brands for cheap pioneer, but by the Nike brand to stick to the main high-end.
In addition, if Nike is really determined to enter the secondary and tertiary markets, in addition to the adjustment of product lines, the existing distribution channels have to make some changes, so that channel flat. Secondary and tertiary markets such as the current network is generally nike air max 90 Nike from a distributor at the market purchase, so the cost of second and third grade instead of getting goods to market is higher, which is Nike limited the profitability of secondary and tertiary markets the main reason.
Domestic and foreign encounters
UBS had before the second and third tier cities in mainland China, the price of footwear products conducted research and found that 170 to 250 range of footwear products, both to protect the company profits, but also make the local consumer acceptance, is the footwear the "perfect price" range. Once the consumers will be able to spend 50 yuan to buy Nike shoes, when domestic brands will go from here?
Especially over the last few years, Li Ning is constantly raised the price, and now the average price of its footwear products are 300 yuan. A recent order will be displayed, Li Ning in air max 2009, three quarters of the price and footwear orders rose 11%. In addition, trends in the hands of the Chinese brand shoes KAPPA average of 370 yuan. Liangyu Chang said, Nike cheap shoes, the impact of such brands is expected to the most obvious.
He believes that when the domestic sports brand marketing budgets will be to determine the impact in their ability to hold on this wave is an important factor. Some companies with air max 24-7 limited marketing resources, is likely to be eliminated in this encounter.
However, Nike also has to enter the secondary and tertiary markets its own restrictions factors. A dealer told reporters that the agency is currently Anta, Li Ning, the profitability of brands such as Nike to be higher than the general agent of about 5 percentage points. For most small and medium-scale dealers, the same input, they would rather home-made agents more profitable brands.
Nike currently a distributor such as Belle, and do not necessarily have the market penetration to the second and third grade experience and strength. Nike To advance China's secondary and tertiary markets, need to do more than just launch products that simple.
