Nike Is Downsizing And Plans To Switch To Its Shoe Brand.

Nike slim

Following the closure of the sole shoe factory in China, and the suspension of many Asian shoe factory orders and termination of cooperation with several Asian apparel manufacturers, the world's largest

And Nike, a clothing manufacturer, continued to lose weight.

After announcing the sale of its brand Umbro for 225 million dollars, Nike plans to strip its shoe brand Cole Haan again.

Nike, which is beset by high inventories and declining performance, hopes to concentrate resources and rely on core brands to fight against Adidas.

However, from nearly half a year's point of view, Nike has been slower than Adidas in its performance growth.

Changing brands frequently

According to foreign reports, Nike intends to sell its footwear brand Cole Haan for $500 million to Apax Partners, a private equity firm.

At present, the two sides have entered the final stage of negotiations.

Cole Haan mainly sells shoes, clothes and bags. It was founded in 1928 by Trafton Cole and Eddie Haan, and has flagship stores in major cities in the United States. It also sells products through department stores and other retailers.

The sale was compared with Nike's acquisition of Cole Haan for $24 for 24 years.

If finalized at a price of $500 million, Nike will not lose money in Cole Haan's return on capital.

However, Nike's brand Umbro, another buyer who has just found a buyer, is "cheap".

Recently, it announced that it has agreed to sell its brand to the US brand management company Iconix B Rand G roupInc (hereinafter referred to as "Ai Connie J") at a price of 225 million US dollars.

It is expected that the sale will be completed by the end of 2012.

Originally an old British football equipment manufacturer, founded in 1924, it has won the world cup award with many "green giants". At the same time, because of its long-term sponsorship of England national football team and many football stars, it has a large number of fans all over the world.

And Nike first bought it for Reebok's purchase.

Competition can also make up the gap between the football field and Adidas.

4 years ago, when Nike bought the deal, the paction price was as high as $565 million. Now the pfer price of $225 million is obviously lower than the original price.

Nike president and CEO Parke said: "stripping any business is a tough decision, but this operation will help us focus more on business with high potential growth opportunities.

"

For the two giants of sports brand, Nike and Adidas, the former's products demand more attention to basketball, while the latter have strong resources in football field for a long time.

As a platform, Nike has gradually introduced sponsorship and promotion into the field of football. Today, its main brand NIKE has been equal to Adidas in the field of football.

It is noteworthy that ACON, who took over, has established a distribution partnership with more than 230 retailers, whose business is mainly for China's Hongkong and mainland markets, and ACON's China Limited has established partnerships with many domestic garment enterprises, including Shanghai's Swiss apparel, Bosideng and Shanghai La Natsu Bell apparel.

Based on this, many analysts said that after the pfer is more likely to attack the Chinese market, especially for the three or four line market, the brand foundation is suitable for a pioneer.

For Cole Haan,

Also took away its main resources, from the current brand positioning, Cole Haan casual style, and Nike's main strategic areas of conflict.

Therefore, the above industry believes that behind the frequent switching of sub brands is actually Nike's integration of core brands, eliminating those brands that may compete with the main brands, and for investors, some of their brands are more valuable.