whether Nike is really determined to enter the secondary and tertiary markets

whether Nike is really determined to enter the secondary and tertiary markets

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 nike air max 90 product without China's high-end of its image.

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 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?"

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 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 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 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?" nike air max 24-7 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 2009 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.

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