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[Chinese shoes Network - News] the Chinese sports market, has long been a spectacle: whether other brands how fierce promotional battle, Nike always Happy "outside world."
However, this situation changed abruptly near future. Nike reported earnings: Nike's stock has risen by two percent. In order to increase sales, Nike's sales will gradually normalized.
Nike, the darling of the sporting goods market, even with the decline in the overall economic situation is also a rare involvement counterparts intensified promotional war.
Nike change, let people discover an important proposition: the economic situation is bad, the market for high-end brands to bring a more severe test. Because the consumer price guide growing, premium br
cheap jordan shoes for men and of high-end brands will be significantly compressed. And if the high-end brands involved in the promotion battle, may result in damage to its brand positioning.
We can say that the situation in the economic downturn, high-end brand strategy to deal with what is a rather technical content of problems. For this reason, "foreign management" interview with the "Father of the positioning of the" Mr. Rees, high-end brands to explore the economic downturn positioning problems.
"double day" Nike
Reporter: Today, Nike in the Chinese market to digest inventory, increase sales, but also began to be involved with their peers promotional battle, which is very rare for Nike, how do you evaluate the changes in the market Nike
. Ai
Retro jordans for sale Rees: high-end brands such as Nike, involvement and peer promotional war, whether directly or discount price is wrong.
On the other hand, some high-end brands will make another type of error - they are priced very high, unable to sustain sales in the market. Sooner or later we have to cut prices to maintain sales.
high-end brands appear both cases, we should reflect.
Analysts Sterne Agee believes: "Nike in China so far, failed to footwear in China launched high-end positioning," why do you think Nike will encounter this problem in China is now involved in the promotion battle Is it? leaving the brand positioning worse?
. Ai Rees: Normally, to build high-end brand positioning through PR or public relations planning, rathe
cheap jordans for sale mens r than through advertising to achieve.
just rely on high pricing is unable to establish the high-end positioning. You first have to create a lot of PR and public events, and in order to develop high prices.
Of course, involved in the promotion battle will weaken the high-end positioning.
On the other hand, although Nike's performance in China is open to question, but its overall performance in the global market is very good, a number of important initiatives to build the high-end brand worthy enterprise reference.
For example: Nike has been committed to product innovation, and excellent public relations effect. Which at the 2008 Beijing Olympic Games debut Lunar cushioning technology, it has now developed into a $ 1.5 bi
cheap foamposites llion line of products. (Just based on the product line sales of this technology, more than last year, Li Ning's sales of $ 1.4 billion.)
In addition, Nike and the London Olympics this year launched a Flyknit ultralight sneakers technology. And the impact of the market based on this technology product line.
So we can say, in the global market, Nike's marketing strategy and market performance is still very good. In a May 2012 for the node fiscal year, Nike's sales reached $ 24.1 billion, an increase of 15.7% over the previous year. This is Nike's biggest growth in the past 10 years.
So, if there is a problem of Nike in the Chinese market, but also that it is not well taken measures to achieve it in other markets due to the
Cheap air jordans for sale Chinese market.
dual-brand strategy for the downturn Nike
Reporter: A common question is: now includes Chinese economy, including the world economy are in difficult times, consumers are more conscious than ever. You think like Nike original high-end positioning of the brand, how to do in this period of price adjustment and marketing strategies to deal with?
. Ai Rees: First, product pricing under the brand to maintain consistency.
If you think it's the Nike brand in China overpriced, so it should lower prices, and is permanently lower prices, rather than to deal with difficult economic times.
The worst thing a brand doing is based on the current situation changes in the economy continues to change the price.
In many
Retro jordans for sale cases, in order to deal with the adverse economic situation and long-term corporate strategy is better: to keep your high-end premium brand, and to lower prices to launch a less expensive brand. In the long run, in almost every product category, the high-end and low-end brand opportunities exist. A company has two brands have the ability to dominate the market at the same time so both ends.
The worst place is the middle segment of the market. Or because consumers want to be the best (high) or the cheapest (low) product. Few consumers will want, I want a not very good nor very bad product.
How do high-end brands through sluggish swamp
Reporter: Some analysts believe that Nike's business situation may be in a relatively long
cheap jordans for sale period of decline for the Nike marketing strategy, you have the kind of advice ??
Ai Rees:? We have not seen evidence of Nike in addition to the Chinese market declining. If Nike its strategic use in the Chinese market to other countries, then the brand may be, together with its financial situation becoming weaker. Here's what we give some advice to all categories in the leading brands, including Nike in the Chinese market:
1. developing high-priced, but not too high. To look at Apple's iPad pricing. Before iPad market, many industry experts believe that Apple's pricing of this product to the big date is $ 1,000. The results of $ 500 iPad in the US market on the basis of pricing is about.
The price means that competitors c
an not drastically cut prices to sell their products at prices based on the iPad.
2. expect competitors to launch competing products at lower prices, but they do not do first this thing. If your brand is perceived as the leading brand, then competitors in order based on the market and profit will have to sell enough of the product, but to do so is likely to take the price cuts, which would be more favorable leading brands.
relationship between Nike and Adidas is the case, compared to Nike, Adidas second brand often lower their prices. This is the Adidas profit margin is only half the reason Nike.
3. Do not lower their prices to meet the competition's pricing. No brand can occupy a hundred percent market share. When one of
the leading brands in order to meet the competition and lower prices, there will be two situations: (1) the leading brand becomes weak, this is perhaps the Nike changes in the Chinese market; (2) competitors were forced to drastically cut prices more so, no one benefits.
4. When the economic difficulties the current situation, do not cut prices. We should expect sales to fall, ready and waiting for economic recovery. When the economic situation is bad, the leading brands should be noted that: Protect your brand to be more important than your market share. In the long run, the most important asset you may have is a strong brand.
5. In the same category was considering launching a second brand. For any company, an important lo
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