Nike Adidas Enters China'S Low-End Sports Shoes Market

According to media reports, international brands Nike and Adidas are considering lowering the price of goods into China's low-end market.

Nike plans to expand sales to $40% to $27 billion by 2015, and Adidas plans to sell more stores in two or three tier cities at lower prices.

In the 9~11 month of 2009, sales in Nike Greater China decreased by 3% compared with the same period last year, while Adidas, another sporting goods giant, dropped 7% in the third quarter of last year after a negative growth in the last two quarters.

In the face of China's huge market cake, the international sports brand will not easily let go.

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Besides, Nike has its own consideration on the competition in the market of cheap sports shoes.

The two or three line cities have a fast growth of residents' income and a wide consumption market. On the contrary, the growth rate of sports goods in the first tier cities is relatively slow and gradually saturated.

Therefore, if Nike decides to sell products with lower price in China, the average high priced domestic brands, such as Kappa and Lining, will be most affected in the short term, because some consumers in the two or three tier cities may choose Nike instead.

In the price war triggered by the international sports brand, it is bound to have a certain impact on the domestic sports brand. Once the price war becomes a strategy rather than an expedient measure, the domestic sports brand will fall into a passive situation.

Since the marketing war is inevitable, how should domestic brands respond to the fierce price war?

Differentiated strategies for products

For homogenized shoes, it has a very clear comparability. In price wars, high priced products are often at a disadvantage.

Adopting differentiated strategy to deal with shoes can obviously reduce the price sensitivity and reduce the adverse effects caused by price war.

First, it can change the appearance, packaging, material, color and technology of shoes.

This is the simplest way, through the original.

Second, through technological upgrading, technological innovation or major breakthroughs.

Shoes are different from inside and outside, and shoes are upgraded from the technical level.

Through the upgrading of technology, we can effectively avoid the impact of price war on enterprises.

Again, it can increase the function and added value of shoes.

Such as breathability or hand-painted functions of shoes, these functions may not be too large, but they can be distinguished from competitors, so as to reduce the disadvantages caused by price war.

Adopt a flexible approach to price war

In actual marketing practice, sometimes price war is inevitable.

At this time, shoe companies must be calm and flexible.

For example, reduce the price of some goods or services, adopt a graded pricing strategy, increase after-sales service content, provide premium gifts, offer discounts, etc.

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Sticking to brand positioning and focusing on service marketing

When the cost of price war is too high, and the strength of enterprises and all kinds of conditions are not available, enterprises can consider the way to retreat in order to stick to the brand positioning and grasp the essence of profit.

Shoe enterprises can promote the "after sales service management" to a new level by developing sales channels and expanding the multi service strategy of after-sales service, and regard service marketing as the core power of enterprise competition.

In this way, enterprises can effectively avoid the adverse effects caused by the "price war" and constantly gain new development space in the market.

For domestic shoe enterprises, in order to get out of the trouble of "price war", we should renew the market concept and innovate the business strategy of the enterprises.

More efforts should be made in product structure adjustment, brand innovation and new product development, so as to upgrade to the height of competition by technology competition instead of price competition.

We must unswervingly implement brand creation, create famous brands, improve the quality of products, create good products, and achieve market breakthroughs with famous brand strategy.