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& nbsp; & nbsp; & nbsp; [Chinese shoes Network - Brand Dynamics] in June of this year, Li Ning, Anta, and other Chinese sports apparel stock prices listed in Hong Kong fell for two consecutive weeks. The reason is only one message: Nike plans to use low-priced products into the mainland market tier. In fact, Adidas has a similar plan. So, foreign brands are Nike, led by second and third tier market expansion Why should it? Their plan will face what challenges? This is today we want to talk about the topic. & nbsp; & nbsp; & nbsp; to enter the Chinese market has become the second and third tier Nike and other foreign brands in the world the only way to achieve business growth. China's market has been the largest overseas market Nike. In 2009, Nike's revenue in the Chinese market growth of about 10 percent over the previous year. While other domestic sports brand Li Ning and Anta revenue growth and more than 25 percent. The reason for the formation of such a large contrast, is limited because of long-term foreign brands North Canton and other cities, while local brands are more to focus on the second and third tier cities. Although the market is large cities, consumer purchasing power, but the growth has been relatively slow, intense compet Cheap foamposites for sale ition, the cost is higher. And with the urbanization process in China, the second and third tier urban consumers faster income growth levels, a huge market space. It can be said, Nike who are also self-styled first-tier cities, it is equal to the world's fastest-growing sportswear market ceded competitors. However, Nike had to be successful in second and third tier market will face no small challenge. The first is the adjustment of product lines. Second and third tier cities in China, the market is the most acceptable footwear priced between 170 yuan to 250 yuan, while the price in China of Nike footwear products are sold in 400 yuan to 1,000 yuan range. Therefore, Nike must consider the introduction of a number of lower-priced products. It is estimated that Nike footwear products need to be down 25% price range, reached the level of 300 yuan per pair. However, price is not easy to achieve. Because it means that companies have to reduce costs product value chain. To the product price down to 300 yuan, Nike and its suppliers need unit profit fell about 21%. The ultimate sales growth will be sufficient to offset the lower prices brought about by the loss of profits is still uncertain. Secondly, the lower prices are likely to damage th Cheap jordans online air jordan 11 blackout for sale e brand image, loss of loyal customers. For many young consumers, to have a pair of Nike shoes is a very face of things. If the product price to a level acceptable to the public, then past the pursuit of high-end, personalized customer get satisfaction will be greatly reduced from the product. In 2008, Adidas had to protect the brand image, risking falling out with the dealer, preventing them cheap empty inventory. The biggest names on the brand image of love is evident. Finally, a foothold in the second and third tier cities, increasing sales terminal cover is an unavoidable Hom. In most people's minds, selling nearly a thousand dollars every turn Nike products, dealer profits will be very impressive, Nike dealers who want to increase sales outlets will certainly rush. However, the reality is not so. Foreign brand dealers profit has actually lower than the domestic brand dealers about 5 percentage points. This is partly due to the opening of the Nike store-front investments than domestic brands, on the other hand, foreign brand product price more transparent, autonomous decision-making space for the price the dealer is also smaller. Further, since the channel system is not flat, the product layers increases, the terminal distributor of cheap foamposites product prices more competitive. So, for the majority of small-scale dealers, the same input, they prefer domestic brands proxy higher profits. To overcome these challenges, Nike are not entirely helpless. First, in order to reduce costs, Nike needs to be transferred to China more factories inland, and in product design and procurement, and marketing chain to reduce costs. In the channels, we should strengthen the construction of flat channels, recruit more local employees to send more managers to actively communicate with the local dealer. Thus closer to the rapidly changing needs of consumers. For example, Adidas changed the only contact with the agent, the latter is responsible for managing the dealer's strategy, in September this year before the establishment of a docking and distributors team. In marketing, it should attract consumers through brand differentiation, rather than price wars to compete head-to. Soften brand in high-end, professional image among consumers, and then launch the appropriate price more popular products, consumers will be able to avoid too much attention to reduce, reduce the low-cost brand image damage. In the past, Nike, Adidas sports brands such great emphasis on professionalism, and therefore the Cheap jordans online distance to the average consumer a bit far. Professional sports products have a "one-man multi-product" of consumption patterns, refers to a professional consumers will buy for different functional needs of sports apparel. For example, wear running shoes jogging, playing basketball shoes, tennis shoes, soccer shoes. However, the majority of second and third tier cities for consumers, but often still "single single-product" of consumption patterns, sports apparel often need to fit a variety of sports, even for everyday wear life. In view of this situation, foreign brands to enter these markets may attempt to shape a more life-oriented, fashion-oriented brand image. For example, Adidas ad, please do Joke brand ambassador, exercise is more to life yoga. In order to lower prices without compromising the brand image may also be considered by a special sub-brands to launch low-end products, to avoid the use of the company's main brand. Such as Nike can its two brands as Converse and Umbro Low pioneer, and let the Nike brand continue to adhere to the high end. 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