Earlier, out of concerns may slow orders for Nike, Citigroup its rating from buy to neutral, while Nike's latest order is in line with this prediction. Prior to the fourth quarter of fiscal year 2012, Nike sales revenue of the Chinese market has been falling trend, its orders rose sharply from 20% to 2%. Nike's management said that the company is committed to developing products for the Chinese market, and strive to achieve a better balance between the functional products in casual sportswear and high prices.
As China's economic slowdown led to a decline in consumer demand, the nike free run 2 company's performance has also been affected. Some shopping malls, close to Nike's domestic brand Li Ning [4.83 3.43%], Anta have appeared within 4 to 6% discounts. Because of peer competition, Nike in the Chinese market frequently sell at a discount to its product.
Investment Advisor in light industry researcher Xiong Xiaokun local brands of discount promotions, resulting in huge loss of customers Nike. The current economic downturn, reduced consumer demand for high-end products, and more favored by the relatively high cost of affordable products. "He believes that Nike will face pressure to survive in this environment, the stocks will rise. As of the end of May 2012, Nike stock has reached $ 3.35 billion, up 23.39% from $ 2.715 billion in the same period last year.
High inventory will seriously affect their liquidity and going concern, Nike's current living condition is indeed worrying, the need to develop a series of measures to efforts to reduce inventory rate. "Said Xiong Xiaokun. Therefore, Nike had to participate in the fierce marketing battle. Even so, Nike high inventory, analysts still think its still three to four quarters to inventory control.
An investment bank analyst said in public that more cautious view of the entire industry product inventory backlog and the problem of excessive discounts, nike free run 3 women business in China.