The Profit Reduction Speed Up &Nbsp; The Sports Industry Is In Deep Trouble.

Nowadays, the current situation of sports goods industry is that the speed of profit reduction is getting faster and faster, the management of enterprises is more and more difficult to do, more and more products are added in the industry, and the voice of the expansion and sinking of the channels is continuously.

In fact, not all enterprises can sink, but can not guarantee that sinking can survive.

As an equal

In the footwear industry, the two development models represented by Wenzhou and Jinjiang have their respective regional characteristics.

In fact, the channel of sports industry is almost "unbridled".

At present, including international sports brand, domestic second line.

The potential attractiveness of China's market consumption has made international famous sports brands such as Adidas and Nike speed up the pace of entering the Chinese market. They are increasingly reaching the level of the county and township level, but this force is not yet obvious.

The main forms of international sports brands such as Adidas, Nike and other sports brands in China are sports mall, shopping malls and sporting goods stores.

This is different from the sinking strategy of domestic brands.

Most of the channels of domestic second tier brands are sinking through the way of direct operation and joint operation. The agency is not easy to operate.

At the same time, the channel sinking of these brands often shows the characteristics of "slogans in advance and actions in the rear". They generally imitate the operation methods of international brand sinking in terms of product style, single store operation management and performance mode.

Because the international brand has a great advantage in brand awareness and products, the impact on the domestic second tier brands is obvious when the channel sinks.

In addition, the brand positioning the three or four tier cities is also looking for opportunities for survival in this crevice.

Among the brands that the author serves, many brands start from the county-level and township markets by taking a clear view of their own position and take the "rural encircling the city" route to occupy the forefront of the local market.

Qi anda brand is one of them.

In Gansu Province, the brand has created a good word for the sporting goods industry. Its annual purchase volume of a single county store, two franchisees and a counter is four and five million, far exceeding the sales performance of other sports brands in the local market.

Among them, there are several reasons for concern: 1, brand positioning is clear, delineating the exclusive area of the movement trend, the product price is moderate, the price performance is high, the product style is widely welcomed by local consumers; 2, the advantages of "taking the advantage first" and matching its local brand promotion strategy, make it successful "superior".

At the same time, this successful mode is copied to other regions, and through accurate positioning in the product mix, we should avoid the heavy competition in the market expansion, choose less competitive regions, avoid the fierce competition in the second tier cities, and ensure that the brand occupies a place in the market.

In the sporting goods industry, Jordan brand's healthy channel expansion is also a typical case.

Jordan brand in the industry in a single store good performance, in the channel development, implement a strategy of steady and steady pursuit of growth, capital turnover, profit balance of three points, so as to separate from shop expansion to improve sales.

As a matter of fact, no matter which forces are laughing at the end, it is very normal for this competition to be smoother. After all, the development of the industry needs to undergo different stages of baptism.

What is sinking?

Although tens of thousands of villages and towns are in China, the economic level of villages and towns is generally low, and the pressure on the development of future brands in the rural market will be greater and greater.

In addition, the difference between the north and South regions is great, and there will be higher requirements for the settlement of brand channels.

According to the industry survey, the balance of revenue and expenditure in the county stores is generally maintained at 3:7 (profit and loss ratio). It is easy to see that the risk of sinking is not small.

Under such unfavorable conditions, many brands compete to "sink", what is the picture?

1, brand development needs.

Facing the grim situation of sports goods industry, the domestic second tier brands, which are originally based on two or three line cities, have encountered varying degrees of bottlenecks in development, and the pressure of survival is threatened. Sinking is a way out.

The cost pressure of operating costs and personnel salaries of the three or four tier cities below county and township market is lower than that of a second tier city, which can make the brand get a reasonable output ratio.

2, listing enclosure.

In the process of channel sinking, there are not only some second-line brands but blindly listing the demand for terminal outlets.

This disguised approach is not only undesirable, nor can it really lead to sales.

There are also some three or four line brands that go on both ends, expand to a second tier city, and develop downward to the township stores. The ultimate goal is to expand sales through channel expansion.

And relative to the path of domestic brand sinking, international brands have shown a relatively stable channel sinking route and Ping efficiency.

3, market demand.

There are a large number of consumer groups in the county and township markets to allow domestic sports brands to cover.

Consumers at county level and township level show great enthusiasm and demand for sports shoes, especially in the southwest and northwest regions.

In addition, policies such as the development of the western region and the acceleration of urbanization in China are all factors contributing to the rising consumption potential of the three or four line market.

The price performance, price and style of the products are the key points for the sports brand to expand the township market.

The three or four line county and township consumers have higher requirements for product quality, so long as they first recognize the quality, they will be able to promote their recognition of the brand.

When the three or four line brand enters the non mainstream market, the control of local consumption index and loyalty is relatively low, which is a common problem in the current brand sinking.

Generally speaking, a second-line brand consumer group is more stable, and consumers' loyalty is relatively high.

When entering the three or four tier city, these brands are usually not listed on new and positive prices, but as a channel to digest inventory.

At this point, the three or four line brands sink to the county and township markets to find suitable space for their own survival. Their channels sink to the county level and towns. Based on the understanding of local consumer demand and consumption habits, according to their brand positioning, combined with accurate market positioning and customer positioning, that is, if there is a clear market demand, they can not be "disintegrated" in the sinking.