Domestic Shoe Brand Two Or Three Line Cities Actively Expand

　　我们认为耐克当前在中国的定价策略令业务无法打入二三线城市，国内品牌却在这些城市积极扩张。在本报告中，我们考虑耐克会否针对二三线城市推出价位较低的鞋类产品，以及该举措对中国运动服饰业的潜在影响。

   　　 独有模型评估消化成本降幅的能力。

After discussing with manufacturers, we created a unique value chain model to examine the ability of the value chain to absorb cost.

Our conclusion is that Nike has the ability to set the price of footwear at a competitive 300 yuan / double.

We also cited two examples of successful penetration of both companies into high-end and low-end markets.

    　　短期影响：国产品牌中平均售价偏高者或将受最大影响。

We believe that if Nike decides to sell low priced products in China, the average high priced domestic brands, such as Kappa and Lining, will be most affected in the short term, because some consumers in the two or three tier cities may choose Nike instead.

    　　中长期影响：国产中小品牌恐遭打击。

We believe that if Nike can successfully penetrate into the two or three tier cities, some domestic brands with general brand image will be squeezed out of the market.

We believe that the annual sales budget of 350 million -5 billion of small and medium-sized brands is unlikely to compete with Nike, Lining and Anta in the whole country (these companies spend more than 1 billion yuan a year in marketing costs).

Although we may suffer a heavy blow in the short term, we believe that the domestic brands with considerable marketing budget should be able to resist Nike, which is "the lowest" market. Anta is still our first choice in the industry.