Power of nike brand
November 12, 2009Compared to some opponents with Nike to respond better in the global crisis, with its brand strength, relying on a variety of price points and sales channels of diversified products, nike shoes company seems more anti-pressure.
Nike’s revenue for the fourth quarter dropped 7%, at 4.7 billion U.S. dollars. Among them, the U.S. operations revenue fell 2 percent, due to continued weakness in apparel sales. Including the Middle East and African markets, and business revenue in Europe fell 19%, but based on a fixed exchange rate terms, revenue fell 3%.
Asia-Pacific region for the same revenue, if the exchange rate factors into account also recorded an increase of 3 percent. In Nike’s fastest growing markets - China, only 6 percent increase in revenue, far less than the same period last year ( before the convening of the Beijing Olympic Games) the growth rate as high as 60%.
As of November last year, Nike’s pre-sales over the same period the volume of orders fell 12 percent, excluding currency impact, compared with 5 percent down. This, Sterne Agee analyst Sam Poser said that Wall Street had expected the exchange rate, excluding the impact of pre - sales orders fell only 2%.
Look at the business of pre-sale orders for the regional situation, Europe, Middle East and Africa (EMEA) zone biggest pre-sale orders for 24%, the United States District pre-sales orders fell 4%.
“They are substantially in this quarter to cut costs, but gross margins are not particularly good.” Poser analysts said, “They seem to take a lot of initiatives to try to keep their market share, but these did not help (Protection) nike air brand. ”
He Nike stores in low-cost product as an example. Such product sales, gross profit margin from 45.8 percent a year earlier to 43.4 percent, as a time when input costs increase the sales price but a discount.
Denson, president of the Nike brand (Charlie Denson) that the company did not indulge in the deep discount in such means. Management has taken to maintain a variety of platforms, from small shops to large low-cost chain, a variety of Product price strategy.
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