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    China Sports Shoes And Clothing Speed Up Brand Competition

    2010/6/30 16:30:00 15

    Nike Adidas Anta

      

    Nike

    Adidas wants to enter the two or three line city at a low price, which has shocked Shishi sporting goods enterprises, especially its own brand enterprises, in a cold sweat.

    There was Lining before.

    Anta

    361 tier, PEAK and other domestic second tier brands to complete the layout of the two or three line city, followed by Nike and Adidas at a low price, which means -


    In the changing market of sporting goods, some independent brands of Shishi have begun to exert themselves in the terminal. However, the strategic adjustment of Nike and Adidas's "low price entry and rush to attack two or three" has given these enterprises a head start.

    When the layout of the first tier cities is completed, the competition between independent sporting goods brands will accelerate with the interception of the two or three line cities and the subsequent pursuit of troops.


    If the international line brand resorted to "killer"


    Nike and

    Adidas

    The reason why many ordinary consumers are deterred is the high price of 800 yuan or 1000 yuan. If a pair of Nike shoes is only 170-250 yuan, will you choose? The answer is yes, and this is not a dream.


    UBS Securities recently made an interesting and realistic assumption in a report on the Chinese sports apparel industry, that is, if Nike and Adidas choose the international first-line brand, the two or three tier cities will launch lower price footwear products, which will have an impact on domestic brands.


    UBS reports that the domestic first tier city market has become saturated, and the future market will mainly focus on two or three line cities. To maintain a high growth rate and strong market competitiveness, these international first-line brands must adjust their existing product price combinations. The "perfect price" of footwear products of two or three line cities is between 170 and 250 yuan. Obviously, the price of 600 to 1000 yuan of Nike and Adidas is not suitable for the consumption level of the two or three tier cities.

    If you want to enter, the adjustment is necessary.


    According to the further analysis of UBS, under the premise of guaranteeing the profit of these brands and suppliers, Nike can make the lowest price 300 yuan, although it is 50 yuan higher than the perfect price, but for consumers, it can buy a pair of Nike for 50 yuan, and they will think that "value for money".

    There is no doubt that the customers of Jinjiang brand enterprises, such as Anta, PEAK and 361 degrees, will surely be lost. Despite the price advantage, Shishi independent sporting goods enterprises without brand competitiveness will be more vulnerable.


    Shishi's own brand sporting goods business is difficult.


    "After crossing the village, there is really no shop."

    Yongning, a deputy general Lin of a sporting goods company in recent years, believes that Shishi's own brand sporting goods business has missed the best opportunity for pformation and development.

    He believes that the 8 years from the 2000 Sydney Olympic Games to the 2008 Beijing Olympic Games will be the best period for the pformation of domestic sporting goods enterprises to the advanced stage. No sporting goods manufacturers that have built up brands during this period will be eliminated in the big wave of the industry.

    "Really, it's hard for us to make pformation, we want to spend money, we don't have money; we want to open a shop and have no money; we still have no money to do OEM."

    Vice President Lin believes that in the next few years, the Matthew effect of sports goods industry will become more prominent. Taking the "G2" Lining and Anta of the domestic sporting goods enterprises as an example, the annual marketing investment of the two sports companies is over 1 billion yuan, while the marketing input of the other second, third tier sports goods brands is between 350 million and 500 million yuan. "In Shishi, sales of sports goods can be counted at a few yuan in the sports goods manufacturing enterprises of 500 million yuan, and there are few marketing inputs in the sporting goods manufacturing enterprises of hundreds of thousands of yuan a year."

    Industry insiders Mr. Wu said that Shishi's own brand sporting goods enterprises are hard to break through in the one or two, three line brand environment.


    Sports goods brand competition will accelerate


    In the two or three tier cities successfully encircled the international brands such as Nike and Adidas, and firmly occupied the market share, Lining, Anta, 361 degrees and other domestic sporting goods brands also took the lead in the first tier cities to seize the market and seize the market share, and the results were obvious.

    Last year, sales revenue of Nike and Adidas in China declined. Nike's revenue was $1 billion 277 million (February 28, 2009 to February 28, 2010), which was equivalent to about 8 billion 680 million yuan, down 4%. Adidas was less reliable. Sales in the Greater China region fell 10%, while sales in China were about 7 billion 638 million, up 25.4% over the same period last year, and Lining, whose sales volume reached 8 billion 386 million yuan, exceeded that of Anta, and Anta had nearly 6 billion yuan of sales.

    As the sports industry insiders say, Nike, Adidas, Lining and Anta belong to the "first army" of China's sporting goods market.


    "The first army" does not mean only attacking first tier cities. The two or three and four tier cities have frequently appeared as "the first army".

    In addition, including the KAPPA, 361 degrees, PEAK, XTEP and other "second legions" also in the national small and medium-sized cities to achieve a comprehensive layout, "foreign brands" Lotto and Philippe also began to rely on the strong strength of Lining and Anta began to seize the terminal.

    Not only that, including seven wolves and other leisure wear brand enterprises also began to wrestle in sports goods.

    There is no doubt that China's sporting goods brand will accelerate the convergence in competition, and the development space of Shishi independent sporting goods brand will continue to be suppressed.

    "China's sporting goods market does not need so many brands."

    Wang Qi, a senior expert who has long observed the development of China's sports industry, believes that from now on, the Chinese sporting goods market will not be able to add another brand of considerable influence.

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