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    Adidas, Nike, Etc. Are Living In The Tail Market &Nbsp; Why Are They Down?

    2011/11/2 16:58:00 26

    Adidas Nike Tail Cargo Market

    Overall sales downturn, let Sports

    brand

    We have to find a new way out.

    The author recently visited that many sports brands began to wholesale, while increasing the density of stores.

    Tail cargo market

    Equal extension.

    This is different from the past practice, triggering the industry's question whether the sports brand is self declining.


     

    Extending to the market


    Despite the overall decline in the sporting goods market this year, I found that

    Nike

    ,

    Adidas

    The number and density of stores such as brands are increasing.


    In the Dragon Plaza, located in Tiantongyuan, Beijing, there are two Nike shops and a special counter on the 2-4 floor.

    Among them, the two or three tier store has produced the "new product ten percent off part commodity thirty percent off" sign.

    There is also a Nike counter in the main store of Longde Plaza.

    Its guide says that there is no discount because it is a direct store.


    The author noticed that although all of them were running Nike, the contents of the 3 businesses were not the same. The two storefront Nike shops were mainly boutique leisure; the three storefront stores mainly promoted new products such as basketball, soccer, running and tennis, while four storehouses were mainly traditional three ball (soccer, basket ball and volleyball) series.

    The author also found that another big sporting goods giant Adidas also opened several stores in Longde Plaza.


    In fact, the sports brand not only increases the density of the store network, but also opens the store to the wholesale and tail cargo market that has never been covered before.


    In a large wholesale market in Hepingli, an agent introduced Nike, Adidas and other brands into the market.

    The author login the official website of Tian Lan's tail cargo in Dazhong temple, and also see that Adidas and Nike have become the signing brands of Tian Lan's tail cargo, and have entered many stores in Beijing market, and because of the low commodity prices, these big names have become the popular brands of Tian Lan's tail cargo market.


     

    Driven by rising prices


    Facing the pressure of raw materials, manpower and logistics, and store rent, domestic and foreign sports brands choose to raise prices this year to cope with the cost crisis.

    The increase in the price side of the balance has also led to a decline in the overall sales of the sporting goods market.


    I spent an hour at the Lisheng sporting goods store in Wangfujing, Tianyuan last weekend, and saw that there are still some customers in Nike and Adidas's stores and counters, but there are few domestic brands such as Lining and Hongxing Erke.

    In the Longdi square's Cui Wei Department store, I saw that the four sports goods area had only a few brands such as Nike and Adidas, and the rest of the sports brands were very few customers.


    A person in charge of Baomori Michiyoshi, a big agent of sports brand, said that the overall sales volume of goods this year was about 10% lower than expected by the impact of the price increase of Nike products in March this year.

    Sales were not up to expectations, but the frequency of updating was not slowing down.

    Although the new and excellent products are attractive to the customers who pursue fashion, but due to the overall market downturn, new products are backlog. As time goes on, new models become old ones, from hot sales to 55% off promotions, which have a great impact on the annual performance.

    {page_break}


    Business is gloomy, so that sports giants have to expand sales channels, or even lay down their status.

    The industry believes that through the widening of channels, the establishment of stores and factory shops can reduce the pressure of performance.


    The sporting goods market is depressed compared with previous years. Apart from rising prices, many competitors are also a major factor.

    At present, apart from large agents, many unknown small agents have joined.

    According to relevant sources, at present, Nike and other big brands are constantly increasing distribution channels, which still need to rely on the strength of large agents such as Baomori Michiyoshi and France.

    Large agents can not take into account the relatively low-end market, while small agents are like fish in water in the low-end market. However, due to their small size, limited financial strength and limited quantity, they can not discuss cooperation with big brands.


     

    Is it good or bad to drop the price?


    For the overall downturn in the sporting goods market, Nike, Adidas and other sports brands are stepping up their efforts to open stores, and storefronts go deep into the low end market. Business expert Liu Hui said that increasing the storefront was due to the improvement of people's living standards, sporting goods have become necessities of life.

    In the face of a large market of 1 billion 300 million people, in order to occupy the terminal sales market, we should increase store strength from the depth and breadth.

    And through leasing or directly buying the storefront, it will seize the advantageous resources in the excellent commercial center of the capital and seize the front of other competitors.


    Although the increase in the density of sports clubs is the initiative to cope with the situation, it also raises questions about whether or not it is self declining.

    Some consumers think that although Nike and Adidas have seized the market, they will have a reverse effect on brand awareness, and will weaken the high-end and fashion concepts that they have built up for a long time.

    Stakeholders believe that Nike, Adidas and other brands are only high-end in China, and abroad are just ordinary sports brands.


    A sports brand agent thinks that the attraction of Nike and Adidas is not because of the identity of their foreign brands, but the gold content of commodities is superior to that of domestic brands.

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