The Rise Of Price Surges Foreshadowed Full Speed Increase In Industry Reshuffle.

On July 21st, after this round of price adjustment,

At present, the annual growth rate of domestic sports market has decreased from 35% to 15%, and the next 5-10 years will be the bottleneck period of brand relocation.

Shuffle is inevitable. Who will fall? Who will break through?

"Lining, it is possible to raise prices", "Anta, raise prices never stop", "PEAK, I can raise price is infinite"......

Following the rise in prices in April this year, the five major sports brands in China began brewing a new round of collective price increases.

Li Ning Co announced recently that the price of shoes will increase by 7.8% in the fourth quarter, and clothing will increase by 17.9%. Before that, domestic sports brands such as XTEP and PEAK will also raise prices by one to 20%.

Insiders pointed out that risking the risk of consumers, domestic brands frequent price adjustment is helpless, in addition to dealing with raw materials, labor, rents and other rigid costs rise, the price surging behind the foreshadowing of industry reshuffle overall speed.

Look at the announcement, the five brands increase price increase is over 10%.

A few days ago, Li Ning Co announced that the price of shoes will increase by 7.8% in the fourth quarter and the clothing will increase by 17.9%.

Coupled with the announcement by Anta, XTEP, PEAK and 361o at the order meeting, sports shoes and clothing of the five famous sports brands in China once again increased by one to 20%.

This is not the first collective price increase of domestic sports brands. The last collective price rise occurred around April.

For the surging tide of price rise, Zhang Xiaoyan, director of external affairs and public relations of Li Ning Co, summed up the following two reasons: on the one hand, the industrial environment, such as the cost of raw materials, manpower and rental, and on the other hand, the company increased its R & D input and led to higher costs.

Visiting the stores, the domestic prices forced Nike ADI 80% cities to vote for the latter.

In the bustling Chunxi Road Zhongshan square, the two major international brands of Adidas and Nike occupy the most important position around the entrance, which is crowded with people.

At the other entrance of the Plaza, Lining, Anta, Jordan, XTEP and other domestic sports brands are stationed together. Lining and Anta invest huge external wall advertisements in the surrounding high-rise buildings.

Including Lining, Anta, Jordan, including the stores have said that they have been informed of price increases.

"The new basketball shoes we have just arrived for example, the previous price is 349 yuan, and the new price is 399 yuan."

At present, the price of the domestic sports shoes is mainly between 300-500 yuan, and after the new round of price adjustment, the price will begin to approach the lower price limit of Nike and Adi 600 yuan.

After the price rises, do you choose ADI, Nike or Lining and Anta? This is a new multiple-choice question, but it is obviously not a difficult problem.

Reporters randomly interviewed 20 Chengdu residents outside the major sports brand stores, and 8 of them said they would prefer to buy ADI or Nike after price adjustment.

Talk about deep channel research and development to promote brand burn

Compared with the reason for the soaring cost of the five major sports brands during the first half of this year, the word "product development" and "high quality" were clearly seen in the current round of rising prices.

Insiders pointed out that behind the continuous rise in the price of sports brands is the ubiquitous "secret war", among which sports brands are in the three major aspects of channels, products and brands.

First of all, in recent years, the "Jinjiang Department" brand, led by Anta and 361 degrees, has been greatly expanded. The store has brought a lot of pressure to Lining.

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Anta pointed out in its 2010 annual report that in 2011, Anta brand will reach the scale of "Wan Dian".

By contrast, Lining is careful that 400 stores are expected to be added in the year, and the total number of stores will reach 8300.

Not only that, each brand has invested heavily in product development in recent years.

Take sports shoes as an example. First, Lining launched the "string bow" damping technology. Then Anta immediately launched the "elastic glue" damping technology, and Jordan responded with the "full palm ventilation system".

In addition, the competition among brands in brand promotion is more intense.

Lining's image spokesperson includes not only NBA stars O'neal, Davies, Turner, Jamaica flying man Powell, but also signed Lin Chiling in March.

But Anta and PEAK are playing a three fold role in the basketball field with Lining.

Anta signed heavily on Garnett and Scola, while PEAK incurred Kidd and Battier's command.

Industry shuffle inevitably experts recommend learning Joyoung soymilk machine

Investment banks have been reduced, profits have stagnated, and the "Jinjiang Department" has followed.

"The difficult situation that Lining encountered in the past year is actually the bottleneck of the repositioning of the enterprise brand. In fact, this is also the collective confusion of the domestic sporting goods industry in the tide of price rising.

When Lining took the lead in opening up the store to get the rough growth path of growth to the end, it meant that the industry's new round of shuffling has arrived.

Fu Zhiyong, partner of management consultancy, pointed out that in the past few years, China's sporting goods industry has been developing rapidly for several years, and the annual compound growth rate of more than 35% of the industry has made every enterprise develop rapidly.

However, in 2010, the growth rate of China's sporting goods market dropped to 15%, and the growth path of sales promotion by relying on opening stores was hard to achieve.

"Lining has always positioned himself in the market space between the international brands such as ADI, Nike and Jinjiang, and as the price continues to rise, Lining has taken the lead to feel the pressure of the constant compression of the space."

Fu Zhiyong pointed out that it is difficult to distinguish the more detailed price range between the middle and high price and the high-end, so the gradual change of brand positioning by gradual price increase is not accepted by the market.

"The repositioning of domestic sports brands may start with professional subdivision, focusing on firepower occupying professional sports resources.

This is similar to Joyoung's success in squeezing the appliance industry through soya bean milk machine.

Fu Zhiyong predicted that the next 5-10 years will be a bottleneck for the relocation of domestic sports brands. "There is no doubt that in this round of shuffling, there will be people falling down and some breakout."