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Charlie: We have manufacturing partners in China and strong as ever. We continue to release a lot of orders to manufacturers, including footwear, apparel, and even some cases of parts orders. In the global market, opportunities for Nike, or that our job is to create a diverse portfolio of Nike’s ability to meet global consumer demand for the product. I hope that together we can continue to work with Chinese manufacturers can produce a large number of Nike products in China. But we will look for some other place of the manufacturer to increase the ability to adapt to changing Nike supply chain needs, allowing companies to take advantage of the different and changing global environment.
Reporter: Chinese manufacturers increasingly high labor costs, which determined whether Nike will incentive for manufacturers to move to Vietnam? Charlie: Not exactly, labor costs in the world are upgrading, this is not a phenomenon unique to the Chinese market, I believe that labor costs in Vietnam or elsewhere in the world also are rising. We will continue to examine labor costs by one every region, regardless of the short, medium or long term. Moreover, when we continue to see rising labor costs, we also look forward to labor prices.
Charlie: it must be declared, regardless whether competitors copying Nike’s business model, I do not wish to make a comment. Compared to how to consider from the Chinese market and our growth opportunities in consumer, competitor performance is not important. For us, our business model has allowed us to grow rapidly, very fast, we are convinced that this model will achieve our re notice of June 2011 figures. In the 2015 fiscal year, Nike Group’s overall annual revenue will reach 2.8 billion to $ 30 billion.
It is this business model, so we are very sensitive and quick to respond to consumer demand. I think, for Nike, this model effective, both in China, the United States, or other global markets, we will continue to use this model. Enhance the resilience of the supply chain? “Labor costs are not the main cause of migration manufacturer Nike, although it does have an impact, but the real reason lies in the need to constantly enhance the ability to adapt to Nike changeable market.” Reporter: the moment, Vietnam is the largest country of manufacture Nike products , but once the first major origin – China retired, does this mean that further adjustments of Nike’s global supply chain? What are the reasons behind this change?
Adidas and Nike podium contention appearance at this year’s London Olympics, the competition is not just athletes, as well as sponsors behind them. British team of athletes and British Olympic Association sponsors Adidas (Adidas) signed an agreement, they will wear Adidas clothing and sneakers and went to the Olympic Village during the awards ceremony, during the competition, they can wear any brand equipment. For those with Adidas rival Nike – signed contract athletes, their brokerage firm, said at the ceremony, these athletes have to barefoot on stage, so as not to violate the treaty of any party.
However, Nike has been no back down, the company’s spokesman said:. “From our point of view, we signed contracts with individual athletes are binding on the British Olympic Association, we are to consult on this issue” Such problem may also affect other similar situations Olympic team. Nike is Russia, China, the United States and the German Olympic Committee sponsor, Puma is the sponsor of the Jamaican Olympic Committee, and sponsored by Adidas, turning Australia and British Olympic Association.Nike teamed boy do children’s wear market to snatch one hundred billion Cake With profits shrinking adult clothing, children’s clothing business in the eyes gradually become associated hearty “dishes on the menu.”
Denson said, such companies during the 2008 Beijing Olympic Games launched Flywire technology bubble and the moon, and now accounted for 60% of Nike’s product line. Nike CEO Mark Parker said: “We believe that innovation and technology are now published is likely to change athletes race results Nike has been committed to providing the best innovative products for different levels of athletes,nike air huarache white sport turquoise gold og， and today we did it. and the use of a very shocking way .Nike Flyknit uppers innovative interpretation of the definition of sports shoes: light weight, and almost seamless, like a second skin and foot shoe from a single piece, single material. precision machining, can minimize waste, is a sports shoe design and manufacturing methods for a big change. ”
Denson said: “Our idea is to be able to value the athletes are passed on to consumers in the consumer opinion, elite athletes have the same needs — they want the best, they want to improve their results. nike air huarache white pure platinum for sale， “While the economic uncertainty to the global customer base, Nike has brought some pressure, but in most countries, sales of Nike, the company has maintained a steady growth in the footwear and apparel. The reason is its victory Nike Depending on market, price point or consumer demographic data, the development of a wide range of products and services.
Inter-related, indeed affect the whole body, increasing upstream costs as opening a curse, the chain reaction is continuing, the mirror turned to the other side, the market situation for Nike difficult to be optimistic. If not online channels, Nike sells its products through two channels – direct sales and distribution (or authorization). Currently, Nike has 756 directly managed retail stores (nearly half in the United States) in the world, where the Nike brand stores to 487, compared with 2010 increased 42. Sub-brand of Nike acquired Cole Haan, Converse, Hurley and Umbro through each store sales, Cole Hann stores to 190, of 51 Converse, Hurley is 21.
Compared with the meager outlets, Nike’s distribution channels spectacular exception: only in the Chinese market, by the end of 2011, Nike has 7,500 stores (including outlets) – most of which Belle, Baosheng such a large All agents. Nike set up 17 distribution centers in 170 countries, including three in the United States. When Nike first entered the Chinese market, in order to snatch the market as soon as possible, the implementation of multi-level agent system, a distributor located below the regional distributors. Currently, in addition to Belle, Baosheng two national distributors, the Shenyang Tengda Japanese, Shanghai Ruili sports, Guangzhou and Chengdu Tao Bo sports fresh wave sports are all in their respective regions formed a certain scale.
2011 third-quarter report released by Nike, said revenue for the quarter grew 5.2%, but because of oil, cotton, rising labor costs and freight, Nike’s gross margin is not high. Nike executives said, in order to ease the rising cost pressures, only raise prices. To some extent, because the did not have control of production processes, Nike indirectly by large OEM model “hostage.” In addition to the prices of last resort, the shortage problem has plagued Nike. In Dongguan popular with this sentence:. “Dongguan traffic jam, the global shortage” In addition, for the cost of part of the out of control, so that Nike profits lower. Nike recently released fiscal 2012 first quarter, Greater China revenue increased by 15%, pre-tax profit increased by 4%, of which a record pre-tax profit increased by Nike Greater China region since the recent low of five quarters.
In addition, Nike’s 2012 fiscal year as a whole the amount of inventories in the first quarter reached $ 3.107 billion, an increase of the global amount of inventory by 41%. The amount of inventories compared with the previous years, Nike amount of inventories since fiscal 2006, at the highest level. From the amount of inventories, the Nike now seems faced with from 2008 to 2009 greatly increased the amount of inventory problems, Nike paid the appropriate price for its price: the Chinese market, for example, because the Nike raised its product prices (about 8% gains), prompting a significant increase in inventories.
According to Nike’s website, sneakers particularly sensitive to labor costs, companies must control labor costs 24% less, to be competitive. Second, the requirements for the production time is quite harsh, especially sports shoes manufacturing,nike air huarache utility prm release date， because the improvement of people’s consumption level, shoe life cycle gradually shortened, sales of products come to shorten the reaction rate which raised foundries high demands, from the previous 5 to 6 months of delivery, and now to three months or so we have to delivery. This means that the foundries have to shorten the production process and improve the response speed.
In China, rising costs forced Nike foundry transfer to Vietnam, at the same time, profit margins shrink because foundries, several foundries start small orders, a direct result of some Nike shoes out (it is known that perennial Nike shortage problem exists). While some foundries require brands to price increases, in response to rising costs. For Nike, this strong brand, this threat seems to fear: you do not,nike air huarache utility price， people do naturally. But the face of Nike holds the majority of orders on behalf of super large business, capital Nike negotiations clearly insufficient.In early 2011, Nike says they want to raise the price of most products.
IWC Outlets relevant person in charge said that with the opening of the Nike factory in China’s first flagship store, low prices will make affordable coverage Nike brand China a wider consumer market. nike air huarache womens blue，The official also said that as China’s first downtown urban version Outlets, IWC has been committed to the promotion of international brands in China’s Direct technology, dramatically reducing the price of international brands in the Chinese market, so that more National energy consumption more affordable to international brands, enhance the quality of life. Nike’s fourth-quarter sales in China $ 667 million, Nike released its fourth-quarter financial statements, reported a sales revenue for the quarter fell Chinese market trends, and compared to the third quarter, down 3.9%.
Nike’s fourth-quarter sales of $ 667 million in China. Total sales revenue as of May 31, 2012, Nike Greater China region in the quarter include footwear, clothing, accessories, reached $ 667 million, including a decrease of $ 694 million of 3.9% compared to the third quarter. In yoy terms, Nike China continue to force the fourth quarter. Reported quarter revenue of $ 667 million, nike air huarache womens blue legend，an increase of 18%. And this growth is relatively narrowed, Nike China’s first-quarter sales of $ 528 million, up 15%; second quarter sales reached $ 650 million, an increase of 35%; third quarter sales to $ 694 million, an increase of 25%.