China Sports Shoes And Clothing Consumption Is Weak, Foreign Brands Also Offer Discount Promotions.

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< p > December 31st, the latest earnings announcement has declined in China.

Nike released the second quarter report as of November 30th, showing its net profit of 384 million US dollars, down 18% from the same period last year, while China's regional business has declined both in terms of sales performance and order quantity, which has lowered the overall profit level.

Under the competition of these domestic counterparts, foreign brands such as Nike and Adidas have also been involved in promotional campaigns and frequently discounted products.

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< p > Nike China's performance decline < /p >

< p > according to the second quarter earnings report released by Nike, the net profit in the second quarter of November 30th has dropped 18% from last year's 469 million US dollars to 384 million US dollars, mainly due to a 137 million loss of two business losses between Umbro and ColeHaan.

In the last quarter, Nike's net profit was $567 million, down 12% compared to the same period last year.

< img border= "0" alt= "" align= "center" src= "/uploadimages/201212/31/20121231030020_sj.JPG" / < /p >

< p > but it is worth noting that the Chinese sports "a target=" _blank "href=" //www.sjfzxm.com/ "clothing" /a "consumption of goods has weakened from local brands to foreign brands.

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< p > Nike's revenue grew 7% to 5 billion 960 million US dollars in the second quarter from last year's US $5 billion 550 million.

However, China's sales performance is weaker than that of North America, Japan and other emerging markets.

Sales from the Chinese market fell 11% to $577 million.

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At the same time, from December to April next year, Nike's a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > delivery orders increased by 6% to 9 billion 300 million US dollars, down from 13% last year.

The order from China has dropped by 6%, and some analysts believe that Nike's sales in China will not improve at least six months in the future.

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< p > inventory rise involved in promotional war < /p >

< p > with the slowdown of China's economy, consumer demand has declined, and the performance of many sports brands has been affected.

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< p > in the shopping mall, the reporters saw that, apart from local brands, under the competition of these domestic counterparts, foreign brands such as Nike and Adidas were also involved in the promotional war and frequently discounted their products.

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< p > in Nike's official mall, the reporter saw that some Nike sportswear and shoes were playing 6-7 fold.

From the paction records, many goods still show the old stock in 2011.

And in Adidas's Tmall official flagship store, the discount rate is even more severe, ranging from 60 percent off to 10 percent off.

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< p > Nike said that the Chinese market is indeed facing the challenge of high storage level in retail channels. At the beginning of this year, China has been trying to reduce its inventory in China.

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Jiang Zhongping, general manager of the brand promotion platform, which is specially designed for clothing brands, told the Yangcheng Evening News reporter that this year, several promotions were made in Guangzhou. The dealers of Nike and Adi were all involved, and the sales promotion intensity was very large, which was as low as 1-5 fold.

"Many dealers are 55% off take the goods, such a low discount, are basically selling at a loss.

It can be seen that not only local brands, but also big international brands are not good enough.

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