Editor's Note: The right product, effective marketing, strong distribution network. Taki conquer China market (the market that focus on the following second-line consumer groups), these three elements, is undoubtedly the most effective. Research shows that in China there are about 1,200 county's three cities and 34,400 towns and 614,000 villages in the consumer had not yet been fully met, if the consolidated consumer goods, consumer durables and health care in different categories total and potential consumer demand, the Chinese market will be up on Taki trillions. In this round of economic crisis, multinational corporations and local enterprises Taki market value, more than ever to understand better. But the winner will be? Local businesses at an unprecedented momentum, a strong conquering a city, figures speak for themselves. In the past year's performance, the Nike CEO Makepake (Mark Parker) specifically mentioned the first time in 1984, Nike shoes sold in the Chinese market scene, when the Beijing Friendship Shopping Centre in a 50 square feet of small shop Nike 200 shoes sold for 11 days. Snail-like pace of sales at that time already become the past, but now the age of 25 in the 500 million Chinese consumers, Nike has been known for. But let Nike's frustrating is that, although the prospects for the Chinese sports market, giving people unlimited reverie, Nike, 3 May this year, sales revenue in China grew by only 6%, in order to reduce inventory, Nike is busy China discount. Adidas and Nike were same boat. Adidas second-quarter sales fell 3 percent, to 2.46 billion euros; operating profit decreased 66%, only 72 million euros to China and Japan-based Asian market sales fell 9%. Discount Adidas shoes, many first-tier cities are becoming the choice of consumers. Chinese sporting goods market in recession yet? From the performance of multinational sports brand, seems so, but Li Ning, Anta have reported half-year results are very different, sharp contrast, regarded as a model of transnational sports brand business model is suffering more or less challenge. Among them, the most tested sports brands and multinational sports brand in China, is the industry chain, market structure and the addition line other than market expansion. Dumbbell model or-take-all chain? Anta (02020.HK) semi-annual report shows that the first half of Anta Group turnover reached 2.82 billion yuan, up 27.7%, while net profit reached 608 million yuan, up 40.1% year on year. Compared with Anta, Li Ning (02331.HK) is worse than the performance. The first half of this year, Li Ning revenue up 32.4% to 4.052 billion yuan, profit before tax income plus depreciation and amortization rose 56.1% to 773 million yuan. For Chinese and foreign enterprises operating results to differ materially from sports performance, market watchers Chen Shixin, said: "Most of the international sports brand with the typical 'dumbbell model', represented by Nike, is only responsible for R & D design, brand management, and other links are basically outsourced, such as production and retail. local sports brand, particularly in the Anta, special steps were the representatives of Jinjiang system, with significant differences between them, their model is the 'vertical integration'. such as ANTA, from product development design, materials procurement, manufacturing, distribution and logistics, marketing and promotion, retail. so full participation in all aspects of the industrial chain, industrial chain will be able to access every part of the profits, thereby enhancing its level of profitability. " Chen Shixin that "vertical integration" model to improve enterprise gross margin level, can effectively control the cost of each link.