Local Sports Brand Bet On Olympic Odds

As expected, local sports brands did not miss the opportunities brought by the Olympic Games.

In June 27th,

A strategic press conference on Sports handover and Olympic Games sponsored by sporting goods Co., Ltd. (hereinafter referred to as "PEAK"), was held in Beijing.

On the same day, PEAK CEO Xu Zhihua said in an interview with reporters that PEAK will take advantage of the influence of the 7 countries in various regions, increase the popularity and influence of PEAK brand in the local market, and display the PEAK brand image with the help of the London Olympic Games as the global attention stage.

In fact, as the London Olympics approaches, within a month,

Anta and PEAK announced their respective Olympic strategies one after another.

A background that can not be ignored is that the local sporting goods industry is in the historical period of a sharp decline in the profitability of the whole industry.

Therefore, the sponsorship of London Olympic Games is widely interpreted by the industry as an industry breakthrough.

At this conference, PEAK put forward the "three hundred target" of enterprise development, that is, in 5 years, PEAK trademark was registered in 100 countries, PEAK products entered 100 countries and regions, and PEAK products overseas sales revenue reached 10 billion yuan in 10 years.

In order to achieve the "three hundred goals", PEAK launched its Olympic strategic plan.

At present, PEAK has signed 7 Olympic delegations with New Zealand, Slovenia, Algeria, Lebanon, Iraq, Jordan and Cyprus.

At this year's London Olympic Games, PEAK will provide 7 Olympic teams with sports equipment such as award dress and match jacket.

"Olympic sponsorship is considered to be a big gamble, and from the perspective of their respective purposes, the sponsorship of blood donation is bound to be closely related to the market of the enterprises."

Liu Xiang, deputy director of PEAK public relations, told an interview with our reporter that PEAK did not win the position of the Olympic cooperative as before, but instead focused more on how to sponsor the National Olympic delegation.

Reporters found that from the number of sponsored national teams, the number of delegations signed by PEAK was only inferior to that of Nike.

It ranks first among sports brands in China.

PEAK sponsored 7 countries in Asia, Europe and Africa, and Oceania, the gold medal strength is not very strong, but relatively expensive sponsorship costs are relatively low.

As early as the 2008 Beijing Olympic Games, PEAK had become the only off-line volunteer partner in the apparel industry.

A year later, in September 2009, PEAK was successfully listed on the Hongkong stock exchange.

So far, PEAK has completed the goal of capital internationalization.

Zhang Qing, founder of Beijing's key road sports consulting company, said in an interview with our reporter that PEAK is indeed very close to other international sporting goods companies in terms of internationalization. However, compared with Adidas, Nike and other international giants, the gap is still very large.

In fact, the sponsorship of the 2008 Beijing Olympic Games made Chinese local sports brands feel more or less the pleasure of rapid growth.

Li Ning Co is the biggest winner of the Beijing Olympic Games. Li Ning Co's financial report shows that its annual turnover is 6 billion 690 million yuan, an increase of 53.8% compared with 2007 and a gross margin of 48.1%.

Among them, sales of Lining products increased by 49.7% to 6 billion 350 million yuan, accounting for 95% of total revenue.

Anta's earnings report also showed that in 2008, Anta's turnover reached 4 billion 630 million yuan, an increase of 55% over the same period last year.

However, in the past 4 years in Beijing Olympic Games, China's sporting goods industry has been suffering from a lack of growth and a serious backlog of inventory.

Liu Xiang told this reporter that 4 years ago, domestic sports brands benefited from the Beijing Olympic Games, and sales performance rose sharply, but this year, most of them are troubled by high storage pressure.

Local sports brands in 2011 showed that both the local eldest brother Lining and the following companies such as Anta, PEAK, XTEP, and 31st degree had slowed down.

In the evening of June 11th this year, Lining issued a performance warning notice, compared with the same period last year, it is estimated that in the fourth quarter of 2012, the order amount of footwear products has dropped by two digits compared with that of the same period last year, and the order amount of clothing products has also fallen by over 20%.

Anta's latest performance also shows that in the fourth quarter of 2012, the amount of orders for products to be sold will decline.

Affected by this, Anta's total annual orders in 2012 are also expected to have a larger decline.

This year, the situation of PEAK is also not optimistic.

In the fourth quarter of, footwear products and clothing products dropped by more than 20%.

PEAK expects its number of stores to decrease by 10% this year.

"At the beginning of 2011, Lining predicted that the entire sporting goods industry will face a grim situation, and the industry pformation is inevitable."

A person in charge of Li's Public Relations Department of the Li Ning Co said in an interview with our reporter.

Liu Xiang said that under the background of heavy inventory pressure and the obstruction of channel expansion, everyone hopes to bet on the London Olympic Games in order to break through the current predicament and stimulate the weak sporting goods market.

Li Ning Co hopes for this year's London Olympic Games.

In addition to continuing to support the five gold winning teams of the Chinese legion, the Chinese table tennis team, the Chinese gymnastics team, the Chinese badminton team, the Chinese diving team and the Chinese shooting team, the company will provide the match equipment and services for them. The top athletes in the world, Powell, Isinbayeva, Thohir Andersson, and the world's top sports teams, the American diving team and the Argentina / Spain men's basketball team, will also be equipped with Olympic equipment tailored to them by Lining.

"In the 2008 Beijing Olympic Games, Lining enhanced the recognition of the Lining brand through the unique and innovative Olympic marketing strategy and promoted the brand image."

Lining, director of the public relations department of Li Ning Co, said that the company expects to further enhance public awareness of the brand of the 2012 by taking advantage of the London Olympic Games.

Just before the Olympic strategy announced by PEAK, Anta Sports Products Limited's Olympic strategy was also fully launched.

As a strategic partner of the Chinese Olympic Committee in the 2009-2012 year, Anta has provided the Olympic Winter Olympic Games award dress for the Chinese Olympic delegation.

A person who did not want to sign a name in the sports industry told our reporter that the cost of Anta's holding the Olympic Organizing Committee of China is about 500 million yuan, which is much higher than that of Lining and PEAK.

Lining spent more than 100 billion yuan on Olympic marketing this year.

PEAK only sponsored an Iraqi team in 2008, but this year the London Olympic Games sponsored 7, and the cost should be more than 10 times.

However, Zhang Qing believes that for local sports brands, sponsoring the Olympic Games is like taking stimulants, which will have some effect in the short term, but it is unrealistic to completely change the current predicament with the help of the London Olympic Games.