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Chinese shoes Network June 2 hearing, the impact study cheap shoes Nike sales of domestic brands in China. We believe that Nike's current pricing strategy in China so that business can not enter the second and third tier cities, domestic brands are actively expanding in these cities. In this report, we consider the second and third tier cities for Nike will launch a lower-priced footwear, as well as the potential impact of the move on the Chinese sportswear industry. UBS proprietary model to assess the cost of a decline in the ability to digest. After and industry players to explore, we create a unique value chain model to examine the capacity to absorb the cost of the decline of the value chain. Our conclusion is that Nike footwear products have the ability to set the price at very competitive 300 yuan / double. We also cite t jordan 3 katrina 2018 he success of the two companies at the same time to penetrate the high-end and low-end market for instance. short-term impact: the average price of domestic brands in the high or will be subject to the greatest impact. We think: if Nike decided to lower the sales price of Chinese products, the average selling price of domestic brands such as short-term affected Kappa and Li Ning, the largest, because some second and third tier cities Consumers may turn to choose Nike. long-term impact: Domestic small brands fear of being hit. We believe that if Nike can successfully penetrate into the second and third tier cities, part of the brand image or general domestic brands will be out of the market. We believe that the annual marketing budget of 350 million -5 million small brands is unlikely with Nike, Li Ning and Anta (These annual buy cheap jordans online marketing costs more than 10 billion) in the nationwide competition. 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