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    "Retreat From Abroad Into The Country" &Nbsp; The Rise Of Chinese Sports Brand

    2010/4/12 13:41:00 39

    Lining

    Hongkong Ta Kung Pao reported that China's national sports brand is rising rapidly and shows the trend of "encirclement and suppression" of foreign brands in the Chinese market.

    In March this year, Li Ning Co released the latest annual report in the port, showing that the sales revenue of the company in the year of nine was 8 billion 387 million yuan (RMB), an increase of 25.4%. It successfully replaced Adidas, a famous foreign brand, and occupied second place in the sporting goods market in the mainland, second only to Nike.

    Experts point out that this signal indicates that China's top domestic sports brands already have the strength to compete with the international giants.


    In China's sports products market, foreign brands such as Nike and Adidas once dominated the world for more than ten years, but with the growth of Chinese national sports brand enterprises, the original market structure has changed.

    In fact, in the past year, "entering the country and leaving the ocean" is the key word in China's sporting goods industry.

    Last year, Adidas became bogged down in various regional markets. Nike closed its only private factory in China. As for BELLE, Daphne and other big agents, they also shut down a large number of Adidas and Nike stores and dropped out of the international sporting apparel brand agency business.


         李寧料三年內地稱王 


    We can also see from the results recently announced that Adidas's sales in China last year decreased by 16% to 967 million euros, of which the sales volume in the mainland was about 7 billion yuan.

    This result reflects that Li Ning Co has successfully replaced Adidas in the Chinese sporting goods market.

    The industry also pointed out that Lining's total sales last year and the estimated Nike sales of tens of billions of sales are only 1 billion 600 million to 1 billion 700 million yuan gap. If the company's annual growth rate of 25% is calculated, Lining is expected to regain the Chinese market throne in the next two to three years.


    Apart from Lining, other Chinese national sporting goods brands also show a bright eye.

    Anta's total sales increased 23% in nine, ranking fourth in the Chinese sports market with 5 billion 875 million yuan, and PEAK achieved 3 billion 95 million yuan in sales last year, up 51.6% from the same period last year, ranking fifth.

    It is worth noting that among the top ten sports brands in China, the majority of China's ethnic brands are in the majority. Foreign brands such as Nike and Adidas have been trapped in the "encirclement and suppression" of Chinese national brands.


      宜建立不同檔次產品 


    Facing the sluggish situation of foreign brands, China's national brands are winning all the way.

    At the end of last year, Anta had opened nearly 400 stores in Shanghai, Beijing and other first tier cities, while 20% of Lining's 7249 stores were located in first tier cities.

    As for PEAK, Xu Zhihua, group CEO, said that PEAK will expand its development in Beijing, Shanghai, Guangzhou and Shenzhen this year.

    He pointed out that PEAK plans to set up 1000 franchised stores nationwide this year, including 100 new shops in Shanghai alone. At the same time, the company will also set up 100 specialized stores for basketball products, which will also be mainly located in the first tier cities.


    However, Chen Peiai, director of the academic committee of the advertising society of China, said that although the competitive advantage of the national sports brand products lies in the low price, the low price can only be a kind of phased marketing behavior. If we want to enter the first-line market, the national enterprises must pay attention to the separation of the products, not only the low-end products, but also their own high-end brands and fist products. This is a fundamental foundation for the future national enterprises in the mainland and even the international first-line market.


    In fact, some ethnic enterprises have already changed their way of operation.

    It is reported that PEAK group will open "basketball shop" in Beijing, Shanghai, Guangzhou, Shenzhen and other mainland first tier cities in April 20th.

    "Basketball shop" will bring together all the basketball related products of PEAK group with the sole element of basketball. It not only owns the mainstream PEAK basketball products in the market, but also includes high-end products such as PEAK star basketball shoes and other PEAK products.

    Hou Lidong, general manager of brand PR Department of PEAK group, said, "the opening of" basketball shop "is a heavy blow by PEAK to the first tier market in the mainland.


      收購FILA納高端產品 


    In addition, Anta Group acquired HK $600 million in October last year to acquire Italy's famous FILA brand in China, Hongkong and Macao, and formally enter the high-end sporting goods market.

    It is understood that Anta will redevelop its brand after the completion of high-end consumer market development, plans to expand its total number of stores to 200 during the year.

    Anta group said it hoped to take advantage of FILA's leading position in the relevant high-end product development field, combined with Anta's experience in the domestic sporting goods market, and seize the development potential of China's high-end sporting goods market.


    Source: Lianhe Zaobao

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