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    The Scale Of China'S Sports Apparel Market Is Increasing Day By Day.

    2010/2/10 13:19:00 32

    Brand

    With 00953.HK moving to Hongkong stock market last week, Hongkong securities market has brought together a number of excellent sporting goods companies in the mainland.

    They include: "everything is possible" Lining (02331.HK), "WE ARE ONE" trend in China (03818.HK), "never stop" Anta sports (02020.HK), "let sports be different" XTEP International (01368.HK), "I can, unlimited possibilities!"

    PEAK sports (01968.HK) and "one more love" 331 (01361.HK).


    Li Ning Co listed in 2004 wrote a stock market myth of rising profits and rising valuations.

    The share price rose to HK $23, or more than 10 times, at HK $2 at the beginning of its listing in 2004.

    As a leader in the industry, Li Ning Co's earnings in the Hongkong market is about 25 times the 2009 performance.

    According to the interim results released as at the end of June 2009, the Li Ning Co made a profit of 473 million yuan, an annual increase of 41.59%, a profit of 45.53 points, and a turnover of 32.38% to 4 billion 52 million yuan during the period.

    In 1989, Lining, the prince of gymnastics, founded the brand of Lining sporting goods with the help of Jianlibao group of Guangdong.

    In 1990, the company successfully sponsored the Asian Games held in Beijing and became famous.


    With the successful holding of the 2008 Beijing Olympic Games, the scale of China's sports apparel market is increasing day by day.

    According to a recent report released by Credit Suisse, China's sporting goods industry is growing strongly, and consumers are expected to have more international and domestic brand choices.

    Chinese consumers, especially the "new generation", who are between 15 and 30 years of age, can increase their disposable income and increase their spending. This will support the sustained growth of China's sporting goods market in 2010. It is estimated that the composite annual growth rate of the market will be 14.3% from 2009 to 2013.

    This is roughly the same as Li Ning Co's forecast that the market will grow by 15% to 16% in 2010, and that Anta expects the market to grow at least 12% to 13%.

    There is also analysis and prediction that the scale of China's sports apparel market will reach 12 billion 400 million US dollars in 2012.

    This leap forward growth has provided a huge market for Chinese sports apparel enterprises.


    Because China's sports apparel market has enough breadth and depth, the sea and broad fish rely on fish jumping, while the big brands in the world and the domestic market continue to grow, small brands also have the development space of "one cup of soup".

    Credit Suisse points out that, considering the income disparity and taste of consumers in different regions, China's domestic sports apparel brands will continue to diversify in the near future.

    In addition, at the present stage of development, consumers generally lack loyalty to sports brands (different from other developed markets), and this further promotes the demand for more brand choices.

    Through marketing and product innovation, some brands will become winners of good growth.


    Successful financing in the Hongkong market also helps these small businesses expand their capacity and build marketing networks to quickly seize the market.

    Meck issued 250 million shares, offering HK $1.43, raising HK $358 million.

    30.4% of the proceeds from the listed fundraising will be used to expand production capacity, 30.5% to expand and improve the coverage of distribution networks, and 23.8% to hold trade exhibitions, brand publicity and so on.

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