Sports Companies In China Are Heading For The "Golden Age" In Small And Medium-Sized Cities.

The streets of China's prefecture level cities and even some developed counties and county-level cities often have similar scenes on commercial streets.

Over the past 10 years, it has relied on the strategy of opening a large number of stores. The domestic sports brands have not only survived in the two or three cities and cities below the country, but also are getting bigger and bigger, with the momentum of "encircling the cities by the countryside". Lining's income scale surpassed Adidas, which was the biggest sporting goods in 2009, and sat on the second seat of the sporting goods market in China. Compared with the strength of the boss Nike, the domestic sporting goods enterprises gradually went to the end of the golden age in small and medium-sized cities.

A senior garment industry believes that China's sporting goods brands are numbered, and now there are numerous sports brands.

Sporting goods market watchdog Ma Gang believes that the past five years are the best five years of China's sporting goods industry. In just a few years, the performance of Lining and Anta has been growing strongly, and the followers, Chinese trends, XTEP, 31st degree, PEAK and so on have made remarkable achievements. In 2009, the performance of enterprises such as Lining, Anta, China trends, XTEP, 31st degree, PEAK and so on combined up nearly 30 billion of sales, about about 60000000000 of the retail sales, about five times before the whole domestic sporting goods consumption scale.

The increase in the number of stores in the two or three and below cities is one of the "trump cards" of the growth of the domestic sports brands.

In 2004, Li Ning Co listed in Hongkong, with a turnover of 1 billion 880 million yuan and 2887 stores. In 2009, the revenue of Li Ning Co reached 8 billion 390 million yuan, and the number of Lining brand stores increased to 7249.

Anta was listed in Hongkong in 2007, with a turnover of 3 billion 180 million yuan and 4716 stores. In 2009, the turnover of Anta increased to 5 billion 870 million yuan, and the number of stores increased to 6591.

The number of Li Ning Co, Anta and other domestic sporting goods companies is increasing in 2010.

How many stores can the domestic market open? PEAK CEO Xu Zhihua optimistically estimates that the number of 1 stores that a single brand can open is possible, but in fact, domestic sports brands have already hit the line ahead of time in expanding the number of stores.

Ma Gang said that in 2010, Lining planned to have 7900 stores, and the number of stores such as Anta, XTEP, 31st degree, PEAK and so on will exceed 7000.

As the number of stores increased, performance also rose.

According to the existing data, the average growth rate of domestic sporting goods brand stores is about 10%, while the sales growth rate is about 20%.

At present, there are 70% outlets for domestic sporting goods brands in two or three line cities, more than 280 in prefecture level cities, more than 370 in counties and more than 370 in counties, including more than 1600 counties (autonomous counties, flags, autonomous flag, special economic zones and forest areas). Then we look at the number of sporting goods retail stores, and the number of sporting goods stores at home and abroad reaches more than 40000. The consumption potential of sports goods in the two or three market is basically excavated, and the market will usher in the integration stage.

According to one industry, the market for sporting goods is about to integrate. His business bought some commercial real estate in the core business circle in two or three domestic cities in 2009, and the value of these commercial real estate has doubled.

This means that the cost of rents or buying commercial real estate will double in the small and medium-sized cities in China.

In some prefecture level cities in Sichuan, an industry that is planning to open a new store laments that the rent has exceeded 10 thousand yuan for 1 square meters, and the rent is growing at a rate of about 20% every year.

Ma Gang said: "at present, the retail market of county-level cities and prefecture level cities," Golden Port "(high quality paving) is limited. After major brands' scramble for resources, the rent has been raised to the point where the brand is hard to bear. It is difficult to achieve the goal of opening new shops, and the speed of channel integration is quickening.

In 2010, Nike China and Adidas China launched their five year plan in succession. They all indicated that in the next five years, the new stores in the two or three tier market would be increased, and the products that were closer to the two or three tier market would be echoed. The target market would be directed at the main market of the domestic sporting goods brand. The competition in the two or three tier market would be more fierce and the price war would become more and more intense. It is no exaggeration to say that the domestic sporting goods brand will enter the crucial stage of survival.

In the past, people who got the channel got the world; in the future, those who lost their channels lost the world.