Nike will cut its price down below $60
According to International shoes net, July 18, “If Nike air maxes sell below $60, will there be more fans of Nike?” The discount storm will release in China market so that Nike can compete with other new air shoes brand in China. In early July, Nike in the mainland China published the news of cheap air maxes, several of the listing in Hong Kong share the price. Analysis says that Nike is anxious to adjust the strategy in China, including lower price to rob domestic market in China. Undoubtedly, there must be a big temptation to customers who want to buy Nike air shoes in China.
In the latest meeting, Nike just published that there will be a “five-year plan”, greater China sales volume is expected to increase by more than 10%. The greater Nike air max income of mainland China is $1.277 billion. Now proposes to increase 10%, this is absolutely a radical plan. There’s no doubt that Nike will take some new measures. For example, Nike will cut down its sales price in order to occupy the largest market, including the second line market and the third line market.. Perhaps, Nike will low the price of air max to $60. According to the “$60 project model”, suppliers shall send operating costs reduced by 9%, and the production costs fell 26%.
Although the low price strategy of Nike air max 2011 shoes is inevitable, it has at least three barriers. One is Nike suppliers must product a more cheap air max but at the same time maintain profitability, the second is how to mobilize Nike dealers to distribute shop’s enthusiasm, three is how to launch low-cost products but not affect it’s the high-grade image in China. However, I think the low price strategy is reasonable and you don’t need to be afraid of buying the cheap shoes.