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    Sports Shoes Enterprises Seize The First Tier Cities To Enter Overseas Markets

    2010/11/10 13:13:00 74

    Sports Shoes PEAK XTEP

    In November 10th, the gap between front-line brands and international brands such as Lining and Anta was gradually shrinking, and no longer satisfied with the two or three line cities.


    This year is the "sports year", and the "inspiring effect" produced by major sports events such as the Winter Olympics and the Asian Games is given to the domestic sports.

    brand

    More opportunities for development have been created.

    In this year,

    Lining

    ,

    Anta

    And so on, the gap between domestic sporting goods brands and Nike and Adidas is gradually narrowing, while 361 degrees,

    Peak

    Quanzhou brands such as XTEP also began to gradually find their own development routes, and sales increased steadily.

    The rise of China's local consumer brands to challenge famous foreign brands has become a landmark trend.


    Market structure


    Local brands are based on two or three line cities.


    At the early stage of the development of local brands, facing the fierce competition of the first tier cities, the domestic brands in the initial stage can only be deterred. They chose more strategic layout of "encircling the cities in the countryside" at the early stage, and took the two or three line cities as their main consumer market.

    Regardless of price or product, the domestic sports brands represented by Jinjiang are more easily accepted by consumers in these regions. Therefore, there is a strategic layout of domestic sports brands lacking first-line market share, which has long been committed to two or three line cities.

    Most of the sales and profits of local brands also come from various outlets in two or three line cities and rural markets. This is also a peculiar phenomenon in the development of sports brands in China.


    This strategic layout of "rural encircling the city" has made the domestic sports brand stand firmly in the two or three line city with great development space.

    Even in the period of global financial crisis, sports brands in China can win the favor of China's huge consumer market with high performance price ratio.

    For example, at the end of 2009, PEAK's 6000th stores settled in Shanghai, urging the whole sports industry to enter the "6000 level", marking that the market competition of China's sports brand channel entered a mature stage, and at the same time, it achieved an annual year-on-year growth of 51.6%.

    In 2010, PEAK had planned to set up 100 basketball theme stores in the country to occupy market segments.


    According to the relevant data, the earnings of several sports brands in Fujian in the last fiscal year have pointed out that the rapid growth of the two or three line cities has made them the biggest beneficiaries of the sports apparel market, and their performance will maintain a good development.

    In the annual reports of Anta and XTEP, we can see clearly that the profit contribution rate of the two or three line market is over 50%.


    Latest developments


    Seize the first tier cities to enter the overseas market


    On the one hand, it has seized two or three lines of cities, but on the other hand, it can not grasp the "right to speak" in the first tier cities.

    Now, after stabilizing the two or three tier cities, the domestic brands have begun to enter the first tier cities. It is an inevitable choice to seek the international sports brand market and expand the development space.

    Especially as a large number of sports brands have completed the listing and financing, the whole industry has entered a new era of capital operation competition.


    PEAK CEO Xu Zhihua, who successfully landed at the Hong Kong stock exchange, said that after the company was listed, the company's funds would be mainly used for brand building and channel construction. "Now it is a good opportunity for us to enter the first tier cities from the two or three tier cities. The financing after listing can support our development in the next few years."


    Lining also said that since the launch of the brand remodeling plan in June this year, Lining's main position is the high-end market, and will continue to expand sales channels in the future.

    In the channel strategy, Lining hopes to improve the existing store's single store benefits, which requires a lot of input, and the effect will take a long time. But once the adjustment is in place, the performance will continue to grow at a high speed.

    XTEP announced that it had added 800~1000 stores on the basis of the original 6000 stores, mainly concentrated in the two or three tier cities in the mainland.

    {page_break}


    In addition to active layout of the domestic market, the overseas market is also the "meat and potatoes" in the eyes of everyone. Lining, PEAK and so on have set the United States sporting goods high consumption group as the first target.

    Li Ning Co executives say Lining's brand is not well known in the US, so the goal is to "test the water". But in the future, the United States will be a big market for the company. The brand is determined to become one of the five major sports brands in the world by 2018, when more than 20% of its revenue will come from overseas markets.

    PEAK revealed that PEAK set up a sales R & D center in Losangeles, and became the second Chinese brand to enter the US market following Lining.


    Lining: entering the international market, starting from "changing the standard"


    Although Lining has been overshadowed by Adidas in the domestic market, he still can not match it in the international market.

    In the first half of, Adidas achieved two digit growth in 5 European markets, and Lining has yet to find a growth point in international market performance.

    Lining's semi annual report shows that its "Lining" brand has an operating income of 46 million 830 thousand yuan in the international market, accounting for only 1% of the company's total revenue. The "red double happiness" brand is 24 million 630 thousand yuan, accounting for only 0.5% of the company's total revenue.


    In order to improve the performance of the international market, Lining has intensified the brand promotion efforts in the international market and signed more than NBA stars in succession.

    This year's "bid change" behavior is also considered as a further preparation for entering the international market.

    Lining's "changing bid" and changing slogans completed the move from "Earth" to "ocean", and the brand image was more fashionable and dynamic.

    However, the "replacement" is just the beginning. How to further explore, expand and deduce the brand's new image and new connotation is a great effort.


    361 degrees: "bravest" local brand


    In the highly competitive sports industry, the market share of 361 degrees is relatively small, but in the snatch of sports events resources, Lining and Anta are not lost. They spend 600 million gold on sponsorship of major events such as the Asian Games. They are regarded as the bravest local sports brands.


    361 degrees was sold several years ago, and it is not true brand.

    Today, the rapid rise of 361 degrees is largely due to a new way of marketing.

    Take the Asian Games sponsorship, Adidas, Nike and other international brands prefer to sponsor some single national teams or league matches all year round, nor have they chosen the Asian Games.

    Although the industry is not optimistic about this, the relevant data prove that the Asian Games did bring good results for 361 degrees, and the company maintained about 17% higher growth in the same store, which is faster than the industry level.


    Anta: Lining's strongest opponent


    In the industry, Anta is regarded as the most direct, strongest and most destructive competitor of Lining.

    Positioning, dominant market, product, price and even sports marketing, competition resources and other aspects of the "coincidence", so that the "confrontation" between them is inevitable.

    Although Anta has been working on terminal construction for a few years, Lining's terminal still holds a number of advantages.

    In addition, Lining's superiority in sportswear is obviously stronger than that of Anta, while Anta performs well in the sports shoes market.

    In the next few years, the success or failure of the two brands in the competition of the first tier cities and the competition in the overseas market will affect the direction of the development of China's local sports in the future.

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