The Development Path Of China'S Local Sports Brands Worth Pondering

Not long ago, American basketball star Michael Jordan complained to China. Sports brand Jordan sports Limited by Share Ltd name right dispute The case sparked heated debate among the public. However, after Jordan's counsel submitted the complaint to the second intermediate people's Court of Shanghai and received the admissibility, it had not made much progress. A month later, the media claimed that the right to name was 50 million yuan. However, the media did not receive a positive response to Michael Jordan and Jordan sports. "We will not respond to the question of numbers." Jordan sports public relations department said, "for Jordan's company, since the case has entered the judicial process, it is unnecessary for us to comment on this matter too much. When appropriate, we will hold a press conference to inform the media about the situation. " Before that, Michael Jordan said in a statement: "the purpose of this lawsuit is not economic appeals, but the protection of my right to name is a matter of principle. I plan to use any economic compensation that litigation may receive to develop basketball in China. A reporter asked several Jordan clothing stores to see if Jordan's sports were sued, and whether the sales of exclusive stores were affected, and the reply was "no impact".

This lawsuit is a twists and turns and a lot of controversies arising from litigation. Presumably this lawsuit will be a long and complicated process, so we can only wait and see what the outcome of the lawsuit will be. But through this lawsuit, we can find the worth pondering on the development path of China's local sports brands.

　　 Advertising marketing Build popularity

In recent years, many well-known domestic brands have emerged in the field of sports products in China, such as Lining, Anta, XTEP, Jordan sports, PEAK and so on. Whether they are TV advertisements or outdoor advertisements, they can see the appearance of these sports brands. Gradually, these brands have become well-known brands, and annual sales should not be underestimated. According to the relevant data, as of the end of 2011, the total output value of China's sports industry amounted to about 222000000000 yuan, of which the sporting goods industry was the largest, accounting for more than 80%, and the apparel industry was one of the fastest growing areas in the sporting goods industry. It can be seen that in recent years, these local brands have developed very rapidly in the field of sports apparel.

There are two reasons for this. First, reasonable price marketing. Most of these sports brands take two or three line cities as the main marketing positions. Consumers in these areas do not have high loyalty to the brand. They value the products more than the others. Therefore, reasonable prices, qualified quality and high coverage stores attract many consumers for brands.

Second, high frequency advertising marketing. It is easy to see that the marketing methods of local sports brands are strikingly consistent -- sponsoring sporting events and inviting celebrity endorsements. From the first big flag of Anta to raise the brand name, Kong Linghui began to say "I choose, I like", and the important sports events and famous sports stars became the goal of sports clothing enterprises. And CCTV sports channel, from the name of news programs to sponsorship of sports events, almost all have the brand of sports brand. Sponsoring sports competitions and inviting celebrities to endorse become the most direct way for domestic sports brands to expand their influence. In view of the strong impetus of the 2008 Beijing Olympic Games to the domestic market, many sports brands now put their hopes on this year's London Olympic Games. Jordan sports 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 is CCTV's earliest report on the 2012 Olympic Games, the most abundant form, the most content and the longest cycle.

With the thrust of the above reasons, local sports brands have come back and forth, and even a number of listed companies have emerged.

Popularity is not equal to influence.

Local sports brands have gained popularity through strong publicity campaigns and market advantages, but it is hard to say that the brand influence has already been formed.

As Michael Jordan announced that it would prosecute Jordan sports suspected of infringing on his right to name, the dispute between "true and false Jordan" has shown some brand risks. In the listing prospectus of Jordan sports, the first thing to put forward in the "risk factor" is that there is no relationship between "Jordan" and "Michael Jordan". Jordan sports 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." That is to say, in fact, Jordan sports has foreseen the risks that may arise in brand names. And some consumers heard this lawsuit, can not help but exclaim, "Jordan sports and Michael Jordan has nothing to do with it."

It can be seen that at present, the influence of Chinese local brands is far less than that of brand names. If brands can arm themselves in place and have their own brand culture and charm, how can consumers not buy it?

Expanding culture and technology marketing

For a long time, the two or three line market has always been the blank spot ignored by foreign brands, and the brand of local sports is relying on this blank spot to develop rapidly. However, in recent years, with the upgrading of the consumption capacity of the two or three tier market, consumers are more rational and picky, and foreign brands have shifted their attention to the market they once neglected. Adidas responsible person said earlier that there will be more than 1000 new stores in 2012, of which the main stores will be located in two or three domestic cities. This argument has directly led to some "tit for tat" between indigenous brands and foreign brands. The channel of foreign brand is sinking, making the market advantage of local brand no longer obvious. At the same time, the demand for global consumer market shrinks, the cost of raw materials rises rapidly, and the domestic CPI and human cost increase rapidly. All these are squeezing the profit margins of the whole industry. It is hard to have a greater breakthrough in the hope of sports marketing and low profit sales.

At present, some local sports brands are still in a weak state. They have just gone through the age of processing, OEM, and cheap labor in exchange for profits. The next thing to deal with is how to make their brands have vitality and how to make the brand spanition from high speed to stable stage. Apart from the competition between price and number of stores, brand influence is the key to success.

Therefore, in the long run, China's local brands should shift their attention from expanding brand awareness to shaping brand influence. As a local brand in China, it can enhance audience loyalty and enhance brand influence from the brand culture, brand connotation and brand characteristics of cultural marketing, in order to become a real local brand.

In addition, behind the high frequency advertising investment is huge capital investment, which also makes the brand profit not as good as it looks. Therefore, after the popularity has been expanded, local brands may consider investing more funds in technology marketing such as product development and technology introduction, making their products chain more perfect, better product performance, and consumers are naturally more satisfied. As a result, consumers will not pay for a certain star, but will pay for the brand.