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commented on last article: Adidas Ransom ARMY TR 2011 New preview of the next article: Ransom by Adidas Cheap air jordans for sale Originals 2011, autumn winter The Valley Low[Chinese shoes Network - brand observation YORK, June 29 morning news, analysts said Friday, for Nike (NKE), the decline in the company's sales in China has sounded the alarm for.
Nike, the recent market since China has become the company's "special child" and also its biggest headache for the Department. While many Western brands are salivating for the huge Chinese market, but the profitability of these companies, the importance of the Chinese market is not very high. But for Nike, the situation is different. Nike CEO Mark - Parker (Mark Parker,) at the time of the company's latest quarterly earnings release interpretation, said the company's "two story still is China and North America."
Although Nike in the North American market share and growth momentum is growing (this growth mainly from the Nike Jordan brand basketball shoes, running shoes and FlyKnit seamless), but on the company in the first quarter sales in the Chinese market volume declined. In fact, in the past fiscal year, Nike in almost all markets are not included in the sales of exchange rate movements are on the rise, even the Western European markets, too, but with the exception of the Chinese market.
Parker said: "Competition in the Chinese market is a marathon, not a sprint." He pointed out that the reason why Nike setback in the Chinese market because the overall growth rate of China's economy has slowed . In addition, excess inventory and pricing pressure brought by competitors are also facing pressure to Nike.
At the same time, Nike also make products for facing trouble on the Chinese consumer tastes problems. In contrast, Nike's biggest rival Adidas (ADS), it has been introduced resonate with Chinese shoppers a full range of products. Nike's sales in the Chinese market has declined, while at the same time Adidas sales have increased, which means that Nike's market share is being invaded Adidas. Some analysts pointed out that Adidas from Germany could replace Nike to become a leader on the Chinese market.
analyst at Susquehanna Financial Group (Susquehanna Financial Group) Christopher - Sylvia (Christopher Svezia) in an interview said:. "This has ewing Nike sounded the alarm," he said, Chinese consumers taste "is becoming higher and higher, longer than 'Tell me what would what' it."
Nike sales from the Chinese market is about $ 2.5 billion, the share of total sales for this company in the ratio of 10%. This compares with last year's total sales of Nike in North America more than $ 10 billion. However, Sylvia expects Nike EBIT (EBIT) from the Chinese market, the company's total EBIT in the proportion as high as one-quarter, which means that Nike, the Chinese market to profitability higher than the North American market.
Sylvia said: "Nike, China is an extremely important market, its high profitability."
In order to improve their own product demand in the Chinese market, with Nike signed endorsement contract of NBA superstar LeBron - James (Lebron James) and Kevin - Durant (Kevin Durant) will visit China this summer. (Chinese shoes Network - the most authoritative and most professional Footwear News)Tag: air jordan websites for shoes , aj 13 retro , jordan lunarlon , jordans size 13 ,cheap jordans online for sale.