Nike will open 40 to 50 discounted factory stores for a minimum of 10% off inventory

According to the Voice of Economy “The World Company” report, from Li Ning, Peak, Anta, to Hummer, Kappa, a month of sports brands at home and abroad ushered in a wave of massive tide of discount stores. Today, this trend has spread to the world's first-line sports brand Nike. It is understood that Nike plans to open 40 to 50 discounted factory stores this year. This scale is far beyond. Nike's newly opened factory shop will expand from the front line to the second and third tier market, with a discount of 3 to 40%, and discounts of up to 10%.

Zhang Qing, the founder of the key road sports consulting company, said that Nike’s financial statements in previous quarters were not good-looking, and Nike could only release water under pressure.

Zhang Qing: Nike's 2012 annual report has not yet been issued, but Nike's decline in the previous quarters in China was more serious and dragged down the growth rate of the global market. Because it is currently ranked first in the Chinese market, its stock is quite large, so when it slows down, stocks make it impossible to take measures to clear inventory.

Nike's promotional efforts are not small. Someone visited the Nike Factory Store in Maliandao, Beijing, and found that the store had a minimum of 199 yuan for a Nike men's wear and 249 yuan for sports shoes. At the same time, the factory shop is carrying out promotional activities, "the whole shoes and shoes package 2 pieces 8.5 fold, 3 pieces 20% off."

A clerk told reporters that the original goods here have already been played 50% off, discounted activities is equal to a discount. When asked about the difference between a factory store and a store's discount, the store clerk said that after all, the store's discounted products were relatively small and the discounts were not as great.

Nike's low-cost promotions have brought great impact on domestic brands that also clean up inventory. The Voice of Economics reporter had visited an outlet store near Beijing Capital International Airport at the end of last year and found that Nike's discount was very high. A down jacket with a original price of 1,500 yuan was priced at 600, and two tickets were also used for a 20% discount. Every consumer came out of the shop, carrying four or five bags in his hands, filled with clothes and shoes. The Li Ning store, which is only one street away from the Nike store, is extremely accessible. A reporter found that the same style of clothing, Nike and Li Ning's price is almost the same, Li Ning's price is also slightly more expensive.

Zhang Qing stated that there are only 40 or so factory stores that Nike has discounted and sold. Therefore, the impact on domestic sports brands is not big. If Nike “spreads awkward” and adds all Chinese stores, the pressure on domestic sports brands will be much greater.

Zhang Qing: I have noticed that the data is that the current plan for their factory stores is to open 40-50 stores. The top five local brands in the Chinese market have almost 6,000 stores in almost every brand. It is also currently open in cities above the third line. However, if it expands the number of factory stores in this store-opening channel, the impact may be greater.

Although Nike is doing poorly, it is promoting sales in China. However, this does not prevent Nike from being selected as the most innovative company in the United States by the well-known American magazine "Quick Company". Nike has defeated Apple and Google.

"Fast Company" magazine explained that Nike won the champion, the most important reason is its innovation in 2012. Among them, the biggest innovation is Nike's - Nike Fuelband. This watch allows people to run while listening to music. At the same time, it can also collect user's own body data and upload it to Nike's digital platform "nike+" for human health analysis. Nike CEO Mark Park explained the original intention of their invention.

Mark Parker: I think our thinking model is not fixed, and we do think of new, unique ways. In some parts of the world, most people listen to music while they are running, so we thought that if a certain device can connect sports with music, reflect their status and respond, this is a very effective idea.

There is no doubt that this is a very good digital product and it is also one of the hallmarks of Nike's transformation into a digital product for sports. Nike sports watch sales in the United States are very high, even more than their famous basketball products are selling back so much that Apple companies have come to steal school. I-watch is about to be born soon. I wonder if the credit for this will not be half that of Nike.

Moderator: "Fast Company" believes that "running" and "music" are combined and linked by "data" and finally brought together on the platform. This is a big digital strategy for Nike, which is like Apple's IOS. Same as Android. Nike also has its own software ecosystem, but its entrance is this watch.

However, the key to the CEO Zhang Qing does not think so, Nike will become an IT company. Zhang Qing felt that although Nike has continuously improved its sense of science and technology, all of this is to serve consumers and allow them to buy their own clothes, shoes, etc. These are the ways of marketing in the new era and new media. Nike is a big company. The company must naturally also advance with the times.

Zhang Qing: Nike itself is selling shoes and clothes, of course, the core is the so-called brand value, which is the spirit of sports, which is used to establish a way to connect with consumers, and it also accounts for a small proportion in turnover. It is also a way to increase the added value of the brand. The property of a technology company is a characteristic of the times. Under the current new media environment, it is impossible to maintain good communication with consumers in the original way.