Into the high-end
Li Ning is the first campaign against foreign-made brand air max 2009 clothing enterprises, Double Star, back in the traditional brand or no resistance to disappear, this is the story of the last century 90. Since the new century, Anta, special steps, 361 ° and so the collective rise of domestic sports brands, and more cheap products, the impact of the cottage, let the Chinese sports market has changed dramatically.
Nike, Adidas, represented by high-end foreign brands began to close in the end, and a large number of second and third tier cities in the domestic brands dominate the market with enough power from the low to mid-forward. Li Ning as the dream of advancing to the high-end domestic brands, in the early years of the 21st century, with the arrogance of the boss to give up competing with the low-end manufacturer, turned to specialized areas of development. This means that Li Ning gave up more market share, and to make it easy for those latecomers to improve brand awareness, so that today, the brand Li Ning is more siege.
Main implementing local sports brand marketing strategy surrounding the cities from rural areas, through the second and third tier cities in an increasingly large number of affluent open new stores to achieve a rapid growth mode. And Li Ning is in a competitive environment almost no birth, long-term growth through market and slow the natural scale, and lucky enough to become boss of domestic brands. Therefore, when the domestic brands, such as eating into the air max 24-7 market when the locust-like, Li Ning, underachievement can not make a powerful return stroke, this unstable position for him to pay the price.
Especially in China into the context of long-term inflation, rising rents, wages, and so greatly increases the cost of the terminal retail stores, but the product itself but also with oil, cotton and artificial increases in the prices and other prices. Despite the commitment to help dealers cope with Li Ning Notice the pressure of rising costs, will increase the discount given to dealers, but this may not be able to make up a substantial rise in costs, and stimulate the dealers out. In addition, there is a ghost-like channels to challenge traditional store model, and that is online shopping. Sports shoes and other products because the size of a standard measure for sale on the network, there have been many in China’s B2C website which sells shoes, they have also the impact of competitive pricing model with the traditional shops.
Game in the rising costs, foreign brands have an advantage, such as Nike factories in China have been closed and reduced orders, lower cost products, mostly from Vietnam, Bangladesh and Malaysia and other countries, but also because of their brand premium on maintaining a reasonable profit. Despite the low quality of domestic brands is not satisfactory, but able to maintain a certain degree of price competitiveness. Li Ning was not so lucky, first of its price relative to other domestic brands too high, or even most flat with Nike or Adidas. At the same time, the brand Li Ning apparently not attractive to foreign air max LTD investors, coupled with outdated design, the main consumer movement is not as favored by young people.
Processing your request, Please wait....
