Following the closure of its only factory in China, the suspension of orders for several Asian shoe factories, and the termination of cooperation with several Asian apparel factories, Nike, the world’s largest manufacturer of sports shoes and apparel, continued to “slim.” Yesterday, the head of the public relations department of Nike China Co., Ltd. confirmed to the Daily News reporter that Nike is preparing to peel off its shoe bag brand Cole Haan for US$500 million. According to industry sources, Nike has recently "slimmed down" its movements frequently, aiming at concentrating power and relying on core brands to survive the crisis and continue to compete with Adidas.

Nike sells two major brands

Yesterday, the person in charge of the Public Relations Department of Nike China Co., Ltd. revealed in an interview with the China Daily News: “Nike is currently identifying Cole Haan’s buyers and preparing for sale.” However, it may be sold to whom, what is the selling price, the person in charge Refused to disclose.

It is understood that Cole Haan was acquired by Nike in 1988 for 80 million US dollars, becoming Nike’s main sub-brand for the sale of shoes, clothing and bags. According to foreign media reports, Cole Haan will be sold to private equity fund company An Shengshen.

The sale of Cole Haan is not Nike's first "slimming." On the 24th of last month, Nike announced that it will sell its brand Umbro to the Ikonesi brand group for US$225 million. Umbro was originally a British manufacturer of football supplies. It was acquired by Nike in 2008 for 285 million pounds (about 565 million U.S. dollars) to make up for the gap between football and Adidas.

According to He Junfeng, the chief designer of the South China School of Clothing and Fashion, in the current economic climate, it is wise for Nike to continue to “slim down” in the face of competition from competitors. "Nike is now recovering its fists, it should be to better fight out. Adidas is Nike's biggest competitor, Nike intends to focus on integrating resources, focusing on the market for major brands, and continue admitting Adidas." He Junfeng said.

He Junfeng believes that giving up Cole Haan and selling Umbro at a reduced price is in full compliance with Nike’s current strategy.

Profit Nike slides heavily in Adidas

The recently announced Nike fiscal first-quarter financial report showed that as of August 31, Nike’s profit fell by 12% due to the increase in indirect costs and lower profit margins. The data shows that Nike's net profit is 567 million US dollars, earnings per share of 1.23 US dollars. In the first quarter of fiscal 2012, net profit was $645 million, and earnings per share was $1.36.

Nike’s first-quarter revenue was US$6.7 billion, up 9.7% from the same period last year; revenue from Greater China was US$572 million, an increase of 8% from US$528 million in the same period last year. The gross profit rate for the first quarter was 43.5%, which was lower than the 44.3% recorded in the same period of last year and it was the seventh consecutive quarter of year-on-year decline.

The financial report shows that Nike's first-quarter operating indirect costs increased by 18%, mainly due to increased marketing spending for key product innovation programs and support for the Olympic Games and the European Championships.

Contrary to the sharp decline in Nike's profits, Adidas's profits have grown. Adidas' latest financial report for the third quarter of this year shows that in the first three quarters of this year, its global sales revenue increased by 8% year-on-year, and sales revenue in Greater China increased by 16% year-on-year. In the third quarter, sales revenue in Greater China increased by 11% year-on-year. It is expected that net profit will increase by 15% to 17% this year to 770 million to 785 million euros.

Shares The gap between the two sides is gradually narrowing

Is Nike "slimming down" to better fight Adidas? Does Nike have a plan to reduce stores in Greater China? Nike did not respond positively to the above issues.

The person in charge of Nike Public Relations said that Nike has always attached great importance to the Chinese market. At present, China is Nike’s second largest market in the world. “We will continue to actively develop our business in China.”

As Chongqing Nike, Adidas's largest agent, relevant person in charge of Chongqing Jin Lang Sports yesterday interviewed by the Daily News reporter said that Nike and Adidas's number of stores in Chongqing is quite, are more than 70. But in terms of sales in Chongqing, Nike is still the oldest player in the sports brand market. Adidas is still a challenger.

He Junfeng believes that as the market share of other sports brands, such as Kappa and Mizuno, gradually increases, Nike and Adidas’ “two-person transfer” pattern gradually disappears, and Nike’s market share is also eroded to a certain extent, and the gap with Adidas is gradually narrowing.

Market Local Supermarket Discounts

The Daily News reporter visited a number of stores in the city yesterday and found that Nike and Adidas’ products were all discounted.

In Park Lane, Nanping, Nike shoes 6 to 8 percent off sales, and some cotton clothes as low as 6.6 fold. Adidas next to the launch of some new 20% discount.

In the new century of Guanyin Bridge, some of the down apparel from Nike’s stores will be offered a 20% discount, while Adidas will also receive 20% off winter clothing.

According to Sang Weisheng, deputy general manager and apparel marketing management consultant of the Park Development Co., Ltd., Ding Ruishi Holdings Co., Ltd., the new discount is a phenomenon rarely seen before, but in the case of a downturn in the general environment, the sports brands only have to fight. Come.

News depth

Stock pressure Shanda Sports brand slimming down to find a way out

Not only Nike, Li Ning, Peak and many other sports brands are facing the pressure of high inventory, performance decline, have to close the door to "downsizing" strategy to find a way out.

Li Ning closed 1,200 low-efficiency stores in the first half of the year; the announcement made by Peak Sports also showed that the total amount of orders in the second quarter of 2013 decreased by 20% to 30% compared with the same period in 2012, as of September 30. The number of authorized retail outlets in China is 6,739, a decrease of 1067 compared with the end of last year. Peak Sports even issued a profit warning. It is expected that the net profit for the first half of the year and the year ending in December of this year will be significantly reduced compared with the same period of last year.

“As early as last year, we began to respond to changes in the market to cope with the industry fatigue period of the next two to three years, and strive to take the lead in recovery.” Peak CEO Xu Zhihua said in an interview with the China Business Daily that Peak takes “zero” "Inventory" measures such as order management, store replacement, and promotion of single-store benefits, in order to recover performance.

“The closure of stores is very sensitive to the outside world. But from an industry perspective, the closure of stores is essentially a process of survival of the fittest.” Xu Zhihua said.

Sang Weisheng believes that many brand stores nowadays lack the style of product display, which is due to unclear positioning in the early stages and blind expansion. They do not consider the problems that will arise. Coupled with the substantial reduction in the demand for the sports brand market today, some of the unserviceable stores have only been eliminated.

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Twenty-two apparel listed companies surpass 38 billion in stock in the third quarter

Recently, the three quarterly newspapers of 22 A-share apparel listed companies, including men's, women's and casual wear, have released a total of 38.175 billion yuan in inventory.

Flushing iFinD data shows that among the 22 companies, in addition to the newly-listed Kanudi Road and George White, 90% of the company's inventory is still growing. Among them, Youngor’s stock amounted to the top, which was RMB 23.953 billion; Red Bean Co., Ltd. ranked second, reaching RMB 3.978 billion; Mebon clothing and Semir clothing were RMB 2.199 billion and RMB 1.349 billion, respectively.

Correspondingly, the clothing company’s operating income also declined. According to statistics, of the 22 listed companies, 5 had negative revenue growth in the third quarter. Among them, Jiangsu Sanyou dropped 17.31% year-on-year, and Semima apparel fell 11.86%.