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    Regeneration Of Sports Retail Industry In China

    2012/3/14 10:24:00 3

    Sports Retail In China

    Domestic sports

    Retail industry

    In less than two years, the pattern of industry has changed.

    Data show that in 2010, the revenue generated by the domestic sporting goods manufacturing and sales industry reached 160 billion yuan. Since 2000, the market is developing at an annual average growth rate of more than 20%.

    Against this background, domestic capital poured into sporting goods retail stores. In January 2011, Gome sports entered this field and made plans to build hundreds of large stores in the next 5 years.

    However, in less than a year, Gome sports retired with only two stores closed.


    Shortly after the departure of Gome, Xinhua (002264, SZ) announced that it would expand its business sector into the sports retail industry again.


    The ambition of the new entrants


    One industry insider predicted that "the future Chinese sporting goods retail market will become more and more concentrated, and the market share of the top three retailers will probably exceed 80%."


    Data show that

    BELLE international flag

    Tao Bo sports, as well as Baosheng international, Shenzhen leading, Shanghai sharp, Shenyang Peng DA and Sichuan Jin Lang, are the main agents of domestic sporting goods.

    The market share of the famous international sports brands such as Nike and Adidas in the hands of these giants is as high as 70%.


    How to seize the market resources of the international first-line brand? This is undoubtedly a very difficult barrier for new entrants.


    Xinhua capital, which has been engaged in retail trade for many years, has not rushed into the sporting goods industry this time.

    The Swiss sporting goods retailer IIC-INTERSPORTInternationalCorporationGmbH (hereinafter referred to as inter sport) is the capital of his big gamble.


    In March 6, 2012, Xinhua signed the main franchising agreement and exclusive brand licensing agreement with Intel sports in Fuzhou, Fujian province. The signing of the agreement means that Xinhua will launch the franchise business authorized by inter sport in China.

    The official Xinhua news agency told reporters that the first store will open in 2013. "We are using the special sports brand, but we are responsible for the day-to-day operation and management."


    According to him, the division of labor between the two sides is that Xinhua is responsible for the daily management of the back-end, profit and loss of the company, etc.


    This cooperation is not a small ambition for the Chinese market. "We hope to open 80 to 100 stores by 2018."


    Looking for information, the reporters found that the cooperation between the two sides had already been a symptom in 2006.

    In 2006, the World Sporting Goods Federation annual meeting and the China International Sporting Goods Industry Forum, Robert Dcock, head of the sports licensing and Global trade development department, appeared in front of many Chinese retailers, and pushed the former sports retailing company, which was not known by most of the retailers in the world, to China.

    In 2010, the Swiss sports retail business sold 5300 authorized sporting goods stores in 39 countries, reaching 10 billion 100 million yuan.


    At the 2006 forum, Robert Dcock publicly expressed the desire to seek partners.

    Gong Yanbing told reporters, "this cooperation is the initiative of the English sport to us."


    The Xinhua capital group, Xinhua capital group, is a diversified enterprise in itself, while operating mineral resources as well as business super block business.

    "This is a prerequisite for cooperation between the two sides. Xinhua has rich experience in Retailing in China."

    Ma Gang, an independent commentator, pointed out.

    Ma Gang believes that the biggest reason for Intel sports to see Huadu is that the Xinhua capital group itself has abundant commercial real estate resources.


    Industry regeneration


    As a world famous sports retailer,

    Inter sport

    The entry into China has made the sporting goods industry more variable.


    Ma Gang believes that because the domestic market situation is not a good thing, "Intel sports is also more cautious."


    It is not difficult to find the pessimism of the sports retail industry in China.

    At the end of 2011, Gome sports announced that it had entered the sports retail industry, and in less than 1 years, it had already passed away.

    At the same time, two other sporting goods retail brands, Baosheng international and baidunbo, which have strong supply chain support in China, are not ideal.

    From the earnings report, reporters found that Baosheng international profits in 2011 than the 2010 growth rate has declined.


    In this case, China's sports products are more likely to be tested with water.


    According to information released by Xinhua, the cooperation between the two sides is only ten years, and there are certain restrictions on the authorization of Xinhua.


    This is mainly reflected in the limited franchised areas of the two sides, including Fujian, Guangdong, Hainan, Guangxi, Guizhou, Hunan, Jiangxi, Hubei, Anhui and Zhejiang.


    "The current competitive situation in the sports goods retail industry is extremely cruel," Ma Gang pointed out. "Before entering, we must first consider the problem of survival."


    Former Gome sports director told reporters, "Xinhua has to develop sports goods retail, the supply chain of the rear must be strong enough."

    One reason for the failure of Gome sports lies in the fact that "Gome sports are hard to get really good suppliers for the season and the best products."

    The trend of sportswear has appeared. "Many customers feel disappointed when they go to Gome sports."


    Inter sport has nearly 30 sports brand agents such as Nike, Adidas, Puma and Alex, and Adidas and Puma are the largest agents in the world.


    Insiders pointed out that the great strength of Intel sports for Xinhua will be a key issue.

    Baosheng and Tao Bo are retail models controlled by brands such as NIKE and ADIDAS. Their brands are limited and product categories are limited. They do not sell their brands.


    As an international competitor, Intel sports will compete with another international sports giant Decathlon in China.

    In 2011, the restructuring of the Decathlon parent group structure, the Greater China region was listed as the same level as Decathlon China and Decathlon global.

    This adjustment means that Decathlon's China strategy has changed.


      

    Decathlon

    The expansion of the Chinese market has accelerated significantly: from January 2010 to the end of April 2011, Decathlon opened 12 new stores in the mainland of China, the 1/3 of its total number of stores since 2003.

    By 2015, Decathlon will open 100 stores in the Chinese market.

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