yyxuanwu

We believe that Nike's pricing in China currently makes businesses cannot break into two or three tiers, domestic brands have aggressively in these cities. In this report, we consider whether  new balance 373 uk  Nike will two or three cities to launch lower-priced footwear, as well as the potential impact of the initiative on China's sportswear industry.UBS the ability to fall in a unique model to assess the cost of digestion.

After discussion and manufacturers in the industry, we have created a unique value chain model to view the ability to absorb the cost of the value chain. We concluded that Nike shoes at very competitive price  new balance 576 uk      of 300 yuan/pair. We also cite two companies successfully infiltrated both high-end and low-end market instances.Short-term effects: high average selling price or domestic brands will be subject to maximum effect.

We think: If Nike decides to sell lower-priced products in China, the high average selling price of domestic brands like Li Ning and Kappa, are the worst affected in the short term, because two or three tier cities some consumers may instead opt for Nike.Medium-and long-term effects: domestic medium and small brand blows.We believe that if Nike successfully infiltrated two or three tiers, part domestic brands or brand image will be out of the market. We believe that marketing budget of 350 million-500