Knowing China through Taiwan

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Overseas sports brands squeeze local rivals in China market

  • Staff Reporter
  • 2013-03-27
  • 15:42 (GMT+8)
Adidas basketball shoes. (File photo/Xinhua)

Adidas basketball shoes. (File photo/Xinhua)

International sport brands continue to make gains in China despite a shrinking market, with Nike posting profits in its third quarter financial report, according to the Chinese-language Beijing Business Today. Rival Adidas also reported a 15% jump in its China sales last year.

The two sportswear giants have pushed down their prices to compete for sales, say industry analysts.

Nike's orders have increased by 4%, although its overall revenue in the mainland has decreased due to its price war with its rivals, said Zhang Qing, founder of Chinese Key Solution Sports Consulting. However, Nike has announced that it will open 40-50 factory stores in China this year offering heavy discounts of up to 70% off and shifting its retail focus to second- and third-tier cities. Adidas has announced a similar move and will open 800 new stores, with the majority located outside major cities.

China's second- and third-tier cities were previously the main source market for domestic sport brands such as Peak, Anta and Li-Ning. However, the encroachment of international companies and the price war between Nike and Adidas has squeezed their market significantly. Zhang Qing believes that domestic brands have only themselves to blame for their current predicament due to overproduction and an inability to follow the fashion trends of their customers.




Zhang Qing  張慶

Who's Who

  • Qin Yizhi (秦宜智)

    Qin Yizhi (秦宜智)

    Qin Yizhi has been the first secretary of the Secretariat of Communist Youth League of China Central Committee since March 2013A native of Xinxiang ...