China'S Sporting Goods Industry: The Temptation To "Go Up Again"

China

In the rapidly developing "golden ten years" (2000 to 2009) of China's sporting goods industry, they emerged and completed the initial accumulation of a single brand with thousands of stores and sales of several billion yuan.

Based on the company's desire to gain new business growth and brand to go high, it aims at cutting into the lucrative high-end sporting goods market and challenging the domination of international sports brands in China's high-end market. Lining and Anta are trying to "make the change".

Lining took the lead.

In July 2008, Lining worked with Lotto, an international fashion sports brand from Italy, to win the 20 year franchise in China for 934 million yuan.

In September 30, 2009, Anta spent about HK $600 million to acquire the 85% stake in Full Prospect and the full stake in Fila Marketing. With this acquisition, Anta owns the trademark of Italy's high-end sports brand FILA in mainland China, Hongkong and Macao, and gets the retail business of the brand in Hongkong and Macao.

For their long-term strategy of developing high-end brands, I think there are three points for attention:

First of all, a "high-end brand + potential huge Chinese market", which is easy to create a wonderful Association of unlimited business opportunities.

With the continuous development of China's economy, the middle class and the rich class continue to grow. Their consumption level is high, mainly for high-end brands.

KAPPA, a high-end brand positioned in the fashion movement, has set a good example for the industry in just a few years.

However, the fact behind this is that it is difficult to create a brand, and it is more difficult to operate a high-end brand successfully.

Secondly, high-end brands are of blood.

The consumption of Chinese consumers in shoes and clothing shows a strong sense of "foreign brands better than local brands", especially in high-end brands, which can not be changed in the short term.

"Fake foreign devil" brand blooms everywhere, but it's hard to make a career with fake things after all.

It is a viable strategy to buy "high root brand", pure European and American high-end brands, and use their "aristocratic genes" to operate in China and even larger markets.

From the practical point of view, Lining and Anta have chosen this high-end brand development mode.

Moreover, the main brand located in the middle end brand and the mass market (Anta or Lining) can not "go up again", otherwise it may face the embarrassing situation which is not recognized by the mass market and the high-end market.

Fortunately, the "Anta" brand has shown a firm commitment to the middle end positioning of the mass market.