Nike Has Repeatedly Stripped Down Its Brand Of Shoes.

The pace of Nike's "downsizing" continues. After announcing the sale of its brand Umbro (UMBRO) for 225 million dollars, the reporter learned yesterday that Nike plans to flag again. shoes The package brand Cole Haan is stripped off, which is sold to the private equity fund, an Bai Shen, for $500 million. At present, the two sides have entered the final stage of negotiations.

"From the perspective of channel development, Nike's frequent sale of its brand is well understood." A person who does not want to be named. clothing Industry analysts told reporters that in the past few years, Nike tried to infiltrate the three or four tier cities in China, but this attempt was not successful. Nike's channel development mainly relies on Baosheng and BELLE two professional channel providers, but Baosheng is currently shrinking the front line, and BELLE's main channel is concentrated in the second tier cities, and does not have the ability to go to the three or four tier cities.

Recently, Nike announced that it had agreed to sell its brand UMBRO to the US brand management company Iconix B Rand G roupInc (hereinafter referred to as "Ai Connie J") at a price of 225 million US dollars. It is expected that the sale of UMBRO will be completed by the end of 2012. 4 years ago, when Nike bought UMBRO, the transaction price was as high as 565 million US dollars. Now the 225 million dollar transfer price is much lower. Nike first bought UMBRO, first to compete with Adidas for Reebok's purchase, and second to make up for the gap between Adidas and soccer.

Nike said publicly that the sale of its brand is aimed at cutting costs, so as to better focus on the development of core brands such as Nike, Jordan Brand, Converse and Hurley. Nike president and CEO Parke also said: "stripping any business is a tough decision, but this operation will help us focus more on business with high potential growth opportunities."

"This year, Sports brand The industry as a whole is in a doldrums, and is facing the dilemma of high storage pressure and declining performance. For Nike, the sale of its sub brands is also aimed at integrating other core brands by concentrating capital and strength, and selling those sub brands that are scattered and easy to fight with the main brand, to a certain extent, can Nike's cash flow be beneficial to the company's performance recovery and long-term development. The analysts believe that.

Public data as evidence. In the last quarter of May 31st, Nike's net profit fell by 7.6% compared with the same period last year, and its product inventories increased by 23%. In the first quarter of fiscal 2013, Nike's net profit fell again by 12%, to 567 million US dollars, and the gross gross profit margin of the current period declined for the seventh consecutive quarter.

A number of market participants analyzed that Nike had some shortcomings in its multi brand operation strategy compared with its "old rival" Adidas. Adidas's multi brand strategy is more resolute. Its flag, whether it is clover, Reebok or Y-3, has relatively independent promotion plan. Nike has different preferences for its brands. It is hard to imagine that its brand such as CONVERSE can surpass Nike's main brand.

On the other hand, Nike The way to expand the channel is not smooth. It is understood that in 2010, Nike has publicly expressed its desire to enter the three or four tier cities in China, and is ready to launch lower priced products. At that time, UMBRO, which was bought by Nike, was regarded as the best "guide" to try. However, because of the fierce market competition and the fact that Nike did not spend too much energy on running the brand, not only did its product slow down, but also its popularity was not enough, so Nike finally had to give up the brand.