The Development Of Sports Brand Is Blocked, Jinjiang Is In The Backlog Of Foreign Capital.

Walking through the county-level city of Jinjiang, you will be surprised by so many brands competing in this small town.

There are thousands of shoe factories and supporting factories, and modern high-rise buildings and broken old houses are standing in this cramped city.

It is hard to imagine that in this county-level city with a population of only 2 million people, there are 37 listed companies, 1 times more than Wenzhou, which is the same as the manufacturing industry. Jinjiang has become China's county-level city with the largest number of listed companies.

And in many two or three line cities, when you see these brand stores standing next to Adidas and Nike, you will sigh the strong vitality of Jinjiang brand.

Fei Xiaotong, a famous sociologist, once defined the development path of Jinjiang as "Jinjiang mode", which is mainly based on market regulation, mainly on export-oriented economy, mainly based on share cooperation, and develops with various economic components.

However, over the past 30 years, the "Jinjiang mode" of speeding development has begun to enter the curve from straight road.

Nearly half of the 37 listed companies in Jinjiang are

Most of the traditional manufacturing enterprises are mainly sports brands represented by Anta and 361 degrees.

The high concentration of industries, intensification of homogeneous competition, strategic adjustment of foreign capital brands and the sink of channels have made the "Jinjiang model" face unprecedented challenges.

Take Anta as an example. In the 2011 Annual Report released recently, although the turnover increased by 20.2%, the profit margin increased by only 11.5%, lower than expected, and its gross profit margin also dropped 0.5 percentage points to 42.3%.

Earlier, Anta public relations manager Yuan Wei said in an interview with the media, "in view of market changes and increasing industry competition, Anta will adopt more flexible arrangements in new and integrated stores. Improving store efficiency will be more important than increasing the number of shops."

According to Hong Kong media reports, Anta management also admitted that the growth rate of orders in the two quarter of 2012 will be lower than the 15% in the first quarter, and the industry will be full of challenges in the next six to 1 years. It is difficult to guarantee the third and fourth quarter order results in 2012.

"Jinjiang enterprises have reached the key point of the two venture, and enterprises must integrate them through innovation and lean management to find a breakthrough in differentiated development."

Wang Maoquan, deputy mayor of Jinjiang, said in an interview with our reporter.

Brand sub-health

When Wang Maoquan summed up the experience of Jinjiang, he thought that the biggest difference between Jinjiang garment manufacturing enterprises and other domestic enterprises is that most of Jinjiang's enterprises own their own brands. "There are many garment manufacturers in Dongguan, but most of them are OEM.

It is hard for enterprises to grow and develop without building strong brand effect.

However, most clothing enterprises in Jinjiang have gained popularity through strong publicity campaigns, but it is hard to say that they have been formed.

Effect.

In February of this year, Michael Jordan announced that he would sue Jordan sports (micro-blog) for alleged infringement of his right to name. The dispute between "true and false Jordan" has shown the hidden danger of brand in Jinjiang enterprises.

In the listing prospectus of Jordan sports, the first thing that the company stated when it came to "risk factors" was that there was no relationship between "Jordan" and MichaelJordan.

The company further stressed, "despite this, there may still be some consumers who link the issuers and their products with Michael Jordan, resulting in misunderstanding or confusion."

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It can be seen that Jordan sports has already foreseen the risk of using this brand.

But Jordan, deputy general manager of sports, Huang Tao, when he talked about the problem, felt a bit aggrieved. "We don't need to borrow Michael Jordan's name to expand its influence, because we are mainly targeting the consumers of the two or three tier cities in China.

These areas do not rely on brand loyalty to carry out marketing. The most important thing is the price of products and the number of stores.

This also reflects the key point of the brand dispute.

For a long time, the two or three line market has always been a blank spot ignored by foreign brands. Jinjiang sports brand is relying on this blank spot to grow and expand rapidly.

However, in recent years, with the upgrading of the consumption capacity of the two or three line market, foreign brands have also shifted their attention to the market they once neglected.

Adidas has said that more than 1000 stores will be added in 2012, of which the main stores will be located in two or three domestic cities.

This argument directly led to some "competition" between domestic brands and foreign brands.

Of course, this is likely to be an important reason why Michael Jordan, who is far from the US, will choose to be interested in the Chinese brand that has existed for nearly 10 years before Jordan's listing.

Under the rapid extrusion of foreign brands, almost all Jinjiang sports this year.

The company has seen an increase in inventory and backlog.

In order to reduce the pressure of distributors, Anta, XTEP, PEAK and other enterprises have reduced the volume of orders in the first quarter of 2012, and voluntarily reduced their plans for opening stores this year.

PEAK's plan for opening up stores in 2011 dropped from 800 to 500-600, from a net increase of 400 stores in the past year to a net increase of 200 stores every year, and it is expected to close about 500 inefficient or loss shops. The number of stores in Jordan sports in 2012 will also remain at around 6000.

In order to cope with the strong attack of foreign brands, Jinjiang enterprises are also trying to infiltrate the first tier cities.

While controlling the speed of expansion and closing the loss shops, most enterprises began to integrate their first tier cities' stores.

Nearly half of Jordan sports's IPO fund raising is to expand direct outlets in first tier cities.

Apart from the competition between price and number of stores, brand influence will be the key point of competition between local and foreign brands.

Huang Tao frankly said: "at present, the domestic sports brand is in a weak state.

The pition from high speed development to stable period determines that we must change the traditional way of winning the price and quantity in the past.

Narrow marketing channels

Looking at the development process of Jinjiang sports brand, it is easy to find that the marketing methods of all enterprises are strikingly consistent -- sponsoring sporting events and inviting celebrity endorsements.

In 1999, Anta first raised its brand name in a big way.

From Anta's annual "profit", Kong Linghui began to say "I choose, I like", and the important sports events and famous sports stars in Jinjiang became the goal of the enterprises.

According to local business owners in Jinjiang, the enthusiasm of local enterprises to hire celebrity endorsements can almost match the current property market.

Many enterprises, regardless of their own funds, take bank loans, or even private funds, to invest in celebrities.

Brokerage firms are sitting on the ground, raising the celebrity endorsement fee.

The profits of one year or even two years are often contributed to the stars.

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The CCTV sports channel has been dubbed "Jinjiang sports channel" for a long time.

From the name of the news program to the sponsorship of the sports events, almost all of the sports brands in Jinjiang are shown.

As the largest sponsor of the CBA League in 2004, Anta has reached a long-term sponsorship agreement with the CBA business promotion partner and the Basketball Association.

Although the amount of sponsorship has not been announced, Anta's sponsorship amount is at least ten million.

"Sponsoring sports competitions and inviting celebrity endorsements is definitely the most direct way to expand the influence of domestic sports brands.

We sponsored the Universiade Winter Universiade in Harbin in 2009, and the sales volume in Harbin this year is 7 times that of the original.

However, in recent years, the price of sports resources is rising all the way, so we can only choose some items that are suitable for price according to our own strength.

In Huang Tao's view, the limited high-quality sports resources in China have been basically carved up by several powerful companies, and the smaller companies are unable to get involved in it. "This is the Olympic year, and everyone wants to go out of the swamp again. We are also looking for some opportunities for differentiation."

In view of the strong impetus of the Beijing Olympic Games to the domestic market in 2008, many sports brands in Jinjiang now put their hopes on this year's London Olympic Games.

Jordan will provide the two Olympic teams of Turkmenistan and Mongolia for the 2012 London Olympic Games.

361 degrees has joined hands with CCTV sports channel to create a 361 degree "London action" series promotion program. This will be CCTV's earliest report on the 2012 Olympic Games, the most abundant form, the most content and the longest cycle.

Anta also mentioned in its mid 2011 earnings report that the advertising and publicity costs of the "Olympic year" will be increased from 12.6% to 14%.

It is only how much the London Olympic Games can promote the domestic sports brand. Huang Tao has no bottom.

"In fact, many industries, including the domestic sporting goods industry, are facing a much bigger situation this year than in 2008.

Global demand for consumer market shrinks, raw materials are rising rapidly, and domestic CPI and human cost are also rising rapidly. These are squeezing the profit margins of the whole industry, and it is hard to make a big breakthrough in pure hope and sports marketing.

Even so, low price is a must for domestic enterprises.

This means that enterprises must sacrifice the pursuit of profit and gross profit margin. "The whole domestic sports brand market structure is likely to undergo a major change in 3-5 years, and the 3-5 place in the market is likely to occupy 60% of the market share.

Therefore, the lowest goal we propose now is "to live."

Huang Tao's tone was rather helpless.