Naive in New Balance.docVIP

 PAGE \* MERGEFORMAT 11 ‘Naive’ in New Balance Chinese sports shoes production accounts for 46% of world production. Boston, New Balance (New Balance) 70% of global sales of sports shoes are produced in China, and also said that the company each year is 35 million pairs of sports shoes in China. But now, New balance with its key suppliers: China’s often resulted in conflicts between Mr., Mr. Chang Yangjiang in southern China city of businessmen in Taiwan. However, in 2000, New Balance is intended to terminate the relationship with Mr. Chang. 1995 New balance hopes not only in China to produce more shoes are sold around the world, but also in the Chinese market New balance shoes. So in 1995, New balance authorized by Mr. Chang to become an official sales agent in China. From the beginning in Taiwan later in mainland China, Mr. Chang has become a major supplier of New balance has been for many years. However, in 1998, Mr. New balance often clash. New balance the causes of conflict is the beginning of the brand strategy with its procurement and distribution strategy in conflict. New balance want to sell more high-end products in China, membership in order to enhance the brand image, and then replace the Adidas and Reebok, to secure market share second place. Headquarters, believing that too much low-end product sales will lower the brand image. Hope that Mr. Chang to reduce common type sports shoes in China sales. However, Mr. Chang said: ‘I have participated in sales meetings in Boston is to be commended, but now they are to blame’. 1998 China, Mr. Chang has sold 58,000 pairs of sports shoes. In 1999 he joined New balance mid-year meeting in Boston, announced that he was able to sell 250,000 pairs. His most shoes sold in China are low-end products, while New balance still want to sell more high-end products, membership in order to enhance the brand image, and then replace the Adidas and Reebok, to secure market share second place. Accordingly, Mr. Chang sold