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Nike Profits Continue To Decline To Sell Its Two Brands

2013/1/24 17:45:00 43

Selling any business is a difficult decision, but this decision will enable us to focus on the areas with the highest growth potential for us. P Although UMBRO still has great value, it eventually has to be stripped because of the development of category a strategy such as < href= //www.sjfzxm.com/news/index_x.asp > strong > Nike < /a > category. The market for UMBRO has shrunk, and its popularity and influence have declined a lot. After Nike acquired UMBRO, it spanformed UMBRO's technology, talents, channels and other resources into its own resources. UMBRO's core resources have been digested. 
Less than a month after the final agreement for the sale of UMBRO P, Nike sold its "a href=" //www.sjfzxm.com/news/index_h.asp "strong" fashion trend /a > brand ColeHaan again. In the press release issued by Nike China to Nike headquarters, ColeHaan will be sold to ApaxPartners, one of the world's leading private equity groups with over 30 years of investment experience. The spanaction is expected to be completed in early 2013. Nike focuses on the areas with the highest potential and return potential, and needs to ensure that these areas are most complementary to Nike's product mix. 
 focus on core business 
In the last quarter of fiscal year 2012, Nike's net profit fell by 7.6% compared with the same period last year, while its stock grew by 23%. P According to foreign media reports, Nike has publicly confirmed that the number of new orders in China's key market is decreasing. Adidas's global sales revenue increased 8% in the first three quarters of this year, while sales in the Greater China region increased by 16% over the same period last year. Adidas expects net profit growth of 15% - 17% to 770 million euros - 785 million euros this year. 
 "when Nike acquired UMBRO 5 years ago," a href= "//www.sjfzxm.com/news/index_c.asp" > strong > Sports Industry /a > is in a period of rapid growth, but now is the stagflation period of sports goods industry. And the market concentration is very high. Nike and Adi occupy about 30% of the global market share. Ma Gang believes that Adidas also has leisure and fashion products, and its contribution to the performance is also relatively large, but it is worth noting that Adidas has a very strict control over the size of leisure fashion products, while Nike has increased the deployment of leisure areas, and its ColeHaan, CONVERSE and heri have leisure fashion products. 
"P," Nike China said in reply to this newspaper, "like any successful company, Nike has always been committed to exploring business priorities. We will further promote the development of Nike brand, Jordan, Converse and Hurley, because we believe that these brands will get unprecedented development opportunities in the future. 
 Nike's product line is too wide, and in the market downturn, including domestic sports brand Lining, Anta and so on, they all choose to focus on core business. But 361 degrees chose the opposite way, subdividing the brand of sports life. This is also a direction, or based on the competitive strategy of the competitors in the professional field. 
 leisure area is "bitter sea": "light fashion" route, short-term earnings obvious, because the market is good to enter, and coincide with the needs of consumers. But in the long run, it is to cure poison and quench thirst. Now there are fast fashion brands springing up, plus the combination of network brand and e-commerce, any enterprise can enter the market quickly and low cost.