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Nike's plan may impact Chinese sportswear firms
11 Mar '13
1 min read
US sportswear maker Nike Inc is planning to open around 40 to 50 new factory outlets in China, in order to clear its high inventory. This may impact the sales of second and third tier Chinese sportswear brands, according to experts.
Nike’s plan to open its own outlets in China is aimed at clearing its inventory, as well as capturing a greater share in the Chinese market.
In Europe and other developed countries, factory outlets have always been the marketing channel and this model has been very mature. The most significant features of these types of stores are lower prices and good quality.
In 2012, when the inventories surged, Nike came up with giving substantial price cuts and discounts at its own stores.
With the opening of new stores to clear its inventories, the discounted sportswear offered by Nike would be offered at about the same price at which products of other Chinese second and third tier brands are normally available.
This may prompt buyers to prefer to purchase genuine Nike goods, instead of the regular Chinese-made products, according to experts.
Fibre2fashion News Desk - China
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