"Fujian Faction" Shoe Enterprises Try To Abandon Star Endorsement To Increase Research And Development

From OEM to self created brand, from the copy to the self integration, PEAK, Anta and other "Min faction" sports brands can be seen twists and turns in twists and turns.

Recently, a news of the decline in the amount of PEAK sports orders again aroused media attention to the "Fujian faction" sports shoe enterprises.

Reverse order and inventory

In May 4th, PEAK sports shoes listed in Hongkong, PEAK sports announced the recent announcement of China's business operation.

According to the announcement, in the fourth quarter of 2012, the order of PEAK sports (wholesale price) decreased by 20% to 30% compared with the same period last year.

Meanwhile, according to previous media reports, PEAK's inventory increased in 2011 compared with 2010.

It is noteworthy that the decline in orders and inventory problems do not exist in individual shoe companies. The newspaper reporter has publicly reported that PEAK, 361 degree, Anta and other "Fujian" sports shoes enterprises are facing low demand and high inventory problems in the post Olympic era.

However, there are also insiders told reporters that shoe enterprises inventory problems must exist, but can not be said to be a common phenomenon.

It is reported that in order to alleviate the problem of high inventory and low demand, the brand of sports shoes enterprises have taken discount measures. This reporter visited the market and found that sports shoes brand new product 12% off, full 200 reduction 40 and other preferential activities are very common.

In addition, in order to extensively cover the market and digest inventory, it is also one of the main strategies adopted by shoe companies to increase stores around the country.

Zhu Qinghua, a light industry researcher at CIC, told reporters that this is a strategy for shoemaking enterprises to ease the current shortage of demand and inventory and make capital available for operation.

He also pointed out that long term discounts would affect the positioning of brand value, and the possibility of losing brand value is also greater.

The industry also told our reporter that a wide range of channels and promotions would make consumers feel that the brand was not doing well.

Heavy advertising, light research and development

Looking back on the establishment of these "Fujian faction" sports brands, their marketing methods basically converge.

In 1999, Kong Linghui endorsed Anta for the "Fujian faction" shoe companies to hire celebrity endorsements.

It is reported that many shoe companies even took bank loans to advertise their own finances.

For example, Chinese basketball stars such as Liu Yudong, star Sean Battier and Artest of the Rockets have all been the spokesmen of PEAK.

In comparison,

Enterprises invest less in product innovation and R & D.

According to data released by the media, in 2011, the cost of advertising by 6 brands such as Anta, PEAK and XTEP reached 4 billion 977 million yuan, and the cost of investment in R & D was only 900 million yuan, far lower than advertising costs.

China

Venture Vanguard Group analyst Wan Ge told reporters that the main problem of sports shoes enterprises is that the phenomenon of product homogenization is too serious, and the product segmentation and innovation are not enough. This should be the key to enhance the competitiveness of shoe enterprises.

Zhu Qinghua also told our reporter that strengthening the construction and promotion of independent brands should be the link for domestic shoe enterprises to focus on Construction in the future stage. At present, we should make great efforts to enhance the competitiveness of our products. How to solve the problem of homogenization of products will be a major consideration for all shoe companies.

Some shoe companies take the lead in pition

According to media reports, on the one hand, some sports shoe companies are increasingly careful in shop shops and brand promotion, and learn from the precise marketing strategies of Nike and Adidas, on the other hand,

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And so on, Fujian's sports shoe enterprises are developing international markets by establishing business organizations and stores in the United States, Russia, Southeast Asia and other countries, or participating in Canton Fair, domestic and overseas footwear fairs and so on.

Facing the market competition of Nike, Adidas and other international brands, the domestic sports shoes enterprises focusing on the local two or three line cities will eventually face challenges.

Zhu Qinghua analysis pointed out that Adidas and Nike in the market positioning for high-end sports market, with "professionalization" positioning, plus its brand influence, the market has a larger profit margin.

Local brands are limited by geographical restrictions, limited influence, unclear brand positioning and serious homogenization will affect their market share.

How do local brands compete with international brands? Insiders point out to reporters that enhancing product competitiveness and stimulating consumer demand is the key.

Domestic brands need to further clarify their position, deepen the exploration of the connotation of sporting goods, weaken the trend of homogenization, accelerate the pformation, and enhance their brand competitiveness.