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    Sporting Goods Industry: Gome Is Coming.

    2010/6/19 11:43:00 25

    Sports Goods IndustryGome

    Gome March

    Sporting goods industry

    When the news came out, the sporting goods industry was in an uproar.

    Peng run group, a pillar of real estate development and electrical retailing, is involved in the retail of sports goods. It really does not have the right way to do business. After all, it is like a mountain crossing. Can Gome copy its brilliant sales in electrical appliances?

    But the success of Gome seems to be just around the corner, thanks to the channel and logistics advantages of sales appliances.

    Just as the two complex emotions are intertwined, it is difficult to distinguish between them. Today, on the north side of Beijing's Fourth Ring Road and on the north side of Haidian Park, next to Metro supermarket, Gome's first store is officially open.


    Follow the low price policy of electrical appliances


    At this point, as a group with the Peng run group of Gome, Peng run real estate and other business segments parallel parts.

    Gome sharp

    Sporting goods chain stores surfaced amid controversy.


    This is the first store in Gome, and its construction area is nearly 5000 square meters, which is divided into two layers.

    The sports products sold by the whole store cover five main bodies, namely, fashion sports, outdoor sports, extreme sports, science and technology sports and competitive sports, involving more than 100 brands and 10 odd products.


    According to Meng Lei, director of Gome marketing center, Gome invested 20 million yuan in its flagship store.

    In terms of store layout, Gome is very different. In the past, large shopping malls were classified according to the brand mode. Gome's sharp movement was concentrated on sports category. In addition, Gome was more focused on experience and there would be more than 20 experience areas simulating many kinds of sports scenes.

    In the sales link, Gome is very different from GOME. All commodities are operated by their own purchasing agents, and do not involve in store fees.

    On the price of the products, Gome sports will achieve full coverage of low, medium and high quality.

    The ratio is roughly 15%~25%, 60%~70% and 15%.

    As for the mode of operation, Gome is keen to establish a leading store for sporting goods chain operation, and to narrow the distance between sports products and consumers.

    strategy


    In China's existing sporting goods market, the number of large Shopping Mall is not large.

    Many sporting goods areas in supermarkets focus on the management of clothing, shoes, hats, sports equipment, outdoor adventures and high-end sporting goods.

    It is understood that in addition to public sporting goods, Gome will also introduce various international famous brands and highlight the positioning of "all kinds of experiential sports hypermarkets".


    In fact, in 2007, Gome began its research on the sharp project.

    Gome sharp company was formally established at the end of last year. Its early operation is very low-key. It has been personally responsible by Huang Xiuhong, chairman of Peng run investment, and Huang Xiuhong is the younger sister of Wong Kwong Yu, the former head of Peng run.

    Gome's sharp move and Gome are brothers, which operate independently of each other and are all affiliated to the Peng run group.


    In March of this year, Gome sports has held a secret meeting with more than 70 sporting goods manufacturers and distributors in the country, and has communicated with other models such as sales and purchasing in the future.

    Gome sports will open 4~5 stores in Beijing. They are already located in the site. They are generally distributed in 5 parts of Beijing: East, West, South, North and middle.

    After opening a store in Beijing, Gome plans to build 100 stores in 3~5 years, and gradually enter the important cities in East China, Southern China and other coastal developed cities and developing cities in the central and western regions.


    30% gross profit rate open pit gold mine


    Sports industry has increasingly become the "open-pit gold mine" in the eyes of entrepreneurs. The huge profit margin is the fundamental reason for Gome to enter the sporting goods industry.

    It is reported that the gross domestic product rate of the domestic appliance retail industry is only 17%, while the gross profit margin of the sporting goods retail industry can reach about 30%.


    According to statistics, the output value of sports industry around the world is around 400 billion dollars.

    The annual output value of sports industry in North America, Western Europe and Japan is ranked among the ten major industries in the country, and its annual growth rate is 20%.

    Compared with the developed countries, China's sports industry is still in the initial stage of development. The contribution rate of sports industry to the US economy is 11%, but the contribution rate of sports industry in China is only 0.7%, which is only 1/16 of the US contribution rate.

    China has a population of 1 billion 300 million, with an annual income of more than 3000 US dollars, 500 million people. If our per capita sports consumption reaches half of Europe and the United States, it will at least form a large market of 2 trillion yuan per year.


    In fact, funds are flowing into the sporting goods market in China.

    Li Haojie, chairman of the board of directors of Shenzhen Tianrong Investment Co., Ltd., who has just concluded the Boao Forum on Asia just a few days ago, has said that after the promulgation of the "guiding opinions", many funds have been ready to move to the sports industry for investment.

    This part of the fund includes some real estate enterprises and coal bosses.

    For example, some Shanxi business groups have been investing in these clubs since they quit the coal mines.

    In addition, after some policies of regulating and controlling the real estate came out, some funds withdrew from the real estate field and entered the sports industry.


    Although everyone has taken a fancy to the gold mine in the sporting goods market, how many others have the ability to dig gold?


    From the point of view of channels, the Chinese sporting goods market has bid farewell to the era of simple franchised stores, and national retailers have gradually occupied an important position.

    At present, the larger retailers are Baomori Michiyoshi, BELLE and the leading companies. These retailers not only represent one or more sports brands, but also help them build their own stores and build sports stores or sports cities.

    These giants have different ways to integrate the market. Some of them have more shops in big cities and big stores in small cities. They intend to open a large store in a better location in small cities, form a flagship posture, and gradually occupy the two or three line market; others prefer the brand management route, and constantly acquire different types of sports brands in order to expand sales scale.


    However, when Gome moved into the market, there was still a shock in the industry.

    The reason is that Gome's sharp move and its post investment group represent an advanced model of the domestic retail industry.

    Barton Weitz, the authority of the global retail industry, believes that there will be three major trends in the development of the retail industry in the future: first, the globalization of the retail industry, that is, with the development of economic globalization, the retail group will also achieve global development; two, the application of information technology in the retail industry will pay more attention to customer needs and guide consumption. Three, the development of the retail industry will require more advanced management personnel, and these three trends are reflected in the Gome's sharp move.

    Peng run's capability of supply chain management, capital integration and training ability of retail managers are clearly identified in the core competitiveness of enterprises.

    From this point of view, Gome's sharp motion as the first cross industry replication model of Peng run investment group will have positive significance for private enterprises.

    Similarly, it will give more publicity opportunities to famous domestic sporting goods brands such as Lining, 360, and so on, especially the high quality store resources of small and medium-sized sporting goods brands, which lack their own channels.

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