June 19, 2011
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recently published international sports brand Nike, to be launched in the Mainland, lower prices of products in order to enter the second and third tier markets. Nike shoes market rumors of some products will be priced as low as 200-300 yuan, which made special steps such fears will exert tremendous pressure on local brands. Executive Director and Chief Financial Officer Xtep Rui Bo Ho said, Nike in the Mainland for over 10 years time, very understanding of the Mainland consumer demand for high-end products , but also understand the low-end products are not the source of Nike profits, so do not think Second and third tier cities into the future direction of Nike, but Nike will not release too many estimated price of the products above. If Nike made?? about the deployment, special steps, as only one more competition from local brands. He also pointed out that local brands more advantage in the second and third tier cities, one is more familiar with the market for local brands, on the other hand is in the relevant market, the brand has improved distribution network. Xtep Group in the Mainland has more than 6,000 dealer outlets, second and third tier cities throughout the country, of which about Bacheng exclusive marketing our products, coupled with the larger group to give dealers a discount, so it has a considerable competitive advantage.He also said
Rui Bo, Nike Air Max 90 , together with Li Ning, Anta and other special steps and local brands, the total number of dealers in China may reach 2 million to 3 million, with international brands to give dealers a discount not very high, do not think There will be many dealers interested in selling cheap products of Nike, and Nike to find a good dealer should also be easy, Nike Zoom Kobe V Section 5 white and red version coming – Nike Belt – Nike, Nike Air Max , with second and third tier urban consumers more receptive to local brands, Nike into the second and third tier markets expected, Nike Shox , no Will have little impact on domestic brands.
learned, this year, dealers hold an additional 800 to step 1000 stores, has opened about 400 family, estimated to total close to the end of 7000. In the first quarter same-store sales are slow growth in the second quarter with a high growth rate, the annual goal is to achieve moderate growth. At the same time, I believe the next 3 to 5 years, growth in the Mainland market for about two whole movement into, the Group outperformed the market growth rate can be. The first quarter of next year , the average sales price of clothing will increase 5 to 10%, while the shoes will have the same increase.



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