Shoe Capital Jinjiang: The Prospect And Confusion Of Sports Industry Upgrading

In May 29th, at the scene of the twenty-second China International Sporting Goods Fair (hereinafter referred to as the "sports fair"), there was an exhibition booth attracting attention. Surrounded by many sporting goods brands, the exhibition hall of Jinjiang, Fujian was designed to be a track and field runway. On both sides of the exhibition stand, there was a huge map showing Jinjiang's geographical location. On the other hand, it was a large screen scrolling promotional video.

In the Expo, Jinjiang led its own brand appearance: Anta, 361 degrees, Jordan, Golden Lake, and Xi long.

Dream and reality

In June 3rd, XTEP International Holdings Limited (XTEP, 01368.HK) was listed on the main board of Hongkong on the first day. It closed at HK $3.57 in early trading, down 11.9%, and fell below the issue price on the first day.

As a member of Jinjiang enterprises, XTEP's 9 years seem to be a portrayal of many other brands: at the very beginning, they only gave international famous brand OEM, an unknown little workshop.

Now this situation has undergone tremendous changes.

Before Jinjiang, there were two sports brand bases in China: Guangdong Shenzhen and Chengdu Wenjiang.

The approved time in Shenzhen was April 2007. The reason for the approval was related to the manufacturing enterprises gathering of sports products. The total number has reached nearly 800. The products are concentrated in: golf products, aviation models, ski equipment, yachts, sports and racing bicycles, fitness equipment and so on.

Wenjiang was awarded the time of May 2007, and Wenjiang District focused on large-scale sports exhibition and marketing, and strive to become a gathering place for the national sports management institutions, famous sports enterprises at home and abroad, sports quality market and sports business organizations.

However, the location of Jinjiang is different from the above two places, with a higher degree of industrial concentration and specializing in manufacturing.

Over the years, Jinjiang has benefited greatly from the sports industry. There are 2300 shoe enterprises in the city, and 79 famous trademarks and 24 famous brand products have emerged in China. Among them, 37 are sports industry brands. In a sense, Jinjiang is remembered by sports.

However, the sports industry is the biggest headache for Jinjiang leaders.

Few of the thousands of brands are really remembered.

Breakout and elimination

"The way to build the sports brand in Jinjiang should start with Kong Linghui, who was hired by Anta. In 1999, Kong Linghui just won the world table tennis championship."

In 2003, the Chinese badminton team training base was settled in Jinjiang. Then, Anta, XTEP, 361 degrees, Lu You, Meck, mingle, Philharmonic and other Jinjiang enterprises began to sponsor domestic events in large numbers.

Cooperation with CBA, WCBA, the National Men's Volleyball League, women's Volleyball League, Table Tennis Super League, extreme sports elite, Trampoline Championship and other national sports events, and also sponsored the national badminton team, gymnastics team, weightlifting team, volleyball team and women's hockey team and other movement teams.

"On the one hand, it shows the determination of Jinjiang enterprises to rush to break through. On the other hand, it is also a bit" hungry for food "because many sports teams themselves are less well-known, and spend one hundred thousand dollars on the cost, so the market effect is hard to assess.

"This phenomenon began to divide in the 2006. For example, XTEP began to emphasize the side of" fashion "sports brand, and Xi De Long began to cut from the perspective of customization, and all brands began to find their own niche in the market segmentation.

The above performance is the performance of Jinjiang brand in various aspects.

After three years of brand remolding, there are still more than 40 enterprises that have real listing plans. This is a process of ebb and flow, from 2300 to more than 40.

Capital and operation

As Lining, Anta and XTEP landed in the capital market respectively, Chinese sporting goods manufacturers began to enter the third stage of utilizing capital market.

The intensification of competition in sales channels was particularly evident in 2008. There has been no store renting in hot blocks of China's two or three tier market.

Zhang Bin, an expert working committee of the China Federation of Commerce, said that three or four stores of the same brand will sometimes be seen in the same block. Although sales have been increased for a short time, it may play a negative role in brand building in the long run.

"I don't think using capital market is a perfect solution, because the problem that enterprises have to face is not just the problem of capital. Actually, according to experience, if there is no general fund problem, there will not be more than 40 enterprises who want to go public together."

"In 2006, Lining introduced the concept of COO (chief operating officer) in the enterprise. This is the first time that the Chinese sporting goods enterprises have introduced this position, indicating that the capital market can not solve all the problems. With the increasing volume of enterprises, many enterprises will encounter practical problems in internal management."

In the era of "post capital market", the internal operation of enterprises will decide who can laugh last in Jinjiang enterprises.

The vast majority of enterprises in Jinjiang have not yet reached the scale of Lining and Anta.

"The earliest sporting goods company in China was born earlier than Adidas, but why is it mentioned that sports brands are Nike and Adidas now, because Chinese companies are often less focused."

In addition to pferring to other industries, many enterprises began to choose to move out.