Competition For Sports Brand In London Olympic Games

When Adidas and Nike were heavily sponsoring the London Olympic Games, none of the sponsors of the first three levels of the Olympic Games were listed as Chinese sports brands. China has made nearly 60% of the Olympic Games. Sports brand We are fighting hard in the dilemma of high inventory.

Earn money by Olympic Games

No matter how Chinese sports brands increase their sports marketing in London Olympic Games, the two major international giants of Nike and Adidas still have the most exposure in this Olympic Games. Adidas has invested 100 million pounds to become an official sponsor of the Olympic Games, and continues to spend money in the Olympic Games.

It is reported that only in sponsoring the Chinese team, Nike sponsored 7 Chinese national basketball teams, weightlifting teams, wrestling teams, track and field teams, tennis teams, archery teams and beach volleyball teams, and also signed stars such as Liu Xiang and Li Na. Adidas sponsors 13 sports teams, the Chinese men's and women's soccer team, the Chinese men's and women's volleyball team, the Chinese men's and women's Tae Kwon Do team, the Chinese men's and women's fencing teams, the Chinese boxing team, the Chinese Judo team and so on.

Chinese sports closely following the two major international brands. brand We can only participate in the London Olympic Games in obscurity as a sub contracting business. Although small and medium-sized enterprises from Zhejiang, Jiaxing, Ningbo, Yiwu and Guangdong Dongguan have produced 60% of the Olympic Games' Olympic products, they still can not get brand internationalization fame in their brand marketing similar to that of their products.

Due to the fact that the Olympic Games are far less attractive than the Beijing Olympic Games, as well as the impact of high inventory and homogenization competition, the enthusiasm of local sports brand marketing has dropped considerably. In sponsoring the Chinese delegation, Lining, the boss of Li Ning Co who traveled to Greece and Athens to deliver the sacred flame personally, has been awarded five sports teams such as gymnastics, diving, table tennis, shooting and badminton in the Chinese Olympic delegation.

The 361 degree is the exclusive sponsorship of CCTV sports reporting group. clothing And to build Olympic equipment for Chinese Cycling and hockey teams; PEAK sponsored Olympic delegations of 7 countries such as New Zealand, Lebanon and Iraq; Anta sponsors the Chinese sports delegation, the London Olympic champion, to receive the award of "champion dragon clothing".

When Chinese sports brands sell heavily on sports marketing in London Olympics, the domestic market is still busy with discount sales and inventory. In 2008, with the help of the Olympic Games in Beijing, the east wind entered a period of high-speed growth as a whole. The Chinese sports brand that made a lot of money was hard to replicate Beijing's achievements.

Unlike the last Olympic Games, the Olympic Games were worse than the European debt crisis, and the US economy was weak. The reduction of orders throughout the year and high inventory have made Chinese sports brands complain incessantly. This exposes a series of development problems of Chinese sports brands, such as excessive inventory, rapid expansion, excessive number of shops and high degree of homogeneity of products. Even Li Ning Co, the fourth largest sports brand in the world, has had various problems this year, but has to adjust its marketing layout at home and abroad and substantially adjust its management team.

Different fate

Although the global sporting goods industry has the spring breeze of London Olympic Games, the sporting goods market is still a few unhappy things.

Adidas's performance in the second quarter of this year is still impressive thanks to its sponsorship status in London and the European Cup. The company's net sales in the second quarter were 3 billion 517 million euros, up 14.8% over the same period last year, operating profit of 256 million euros, an increase of 17.1% over the previous year, and the net profit attributable to shareholders of listed companies reached 165 million euros, an increase of 17.9% over the previous year, slower than the first quarter growth rate. In the second quarter, Adidas's net sales in Europe's emerging markets reached 487 million euros, up 28.2% over the same period last year, and net sales in the Greater China region reached 347 million euros, up 29.4% over the same period last year. Adidas has raised its annual profit growth rate from 12% to 17% to 15% to 17%.

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Adidas's global competitor Nike reported in June that net profit fell by 7.6% in the fourth quarter due to lower profit margins, higher marketing costs and slower growth in the Chinese market. This result is lower than market expectations.

And Lining, Anta, PEAK, 361 and other local brands issued a profit warning after 2012. Among them, Li Ning Co's total orders in 2012 showed a high double-digit percentage decline, and the promotion cost will increase significantly in the next few years. The net profit in the first half of 2012 and the whole year will be substantially lower than the same period last year. Among them, the order amount of shoes products resulted in a low double-digit decline year by year, while the annual decline of clothing products was more than 20%.

PEAK pointed out that the negative impact of the industry's inventory adjustment and weak economic conditions on the demand for sporting goods is expected to decrease significantly in the six months ended June 30, 2012 and the end of December 31st.

At present, China has become the second largest sporting goods consumer market next to the United States. The added value of China's sporting goods industry has increased year by year. In 2011, the output value of the domestic sporting goods industry will reach 176 billion yuan, which is affected by the strong offensive of the two major international brands in the domestic first-line market. The local sports brand business income exceeds 60% from the domestic two or three line cities, and the price of the products is priced.

But in recent years, the consumption capacity of the two or three tier urban residents has been improving. Both Nike and Adidas have seen business opportunities. More stores have been set up in the two or three tier cities and more customers have been developing products with medium price, making local sports brands less easy to digest.

The industry expects that in the next two or three years, as the domestic sporting goods market accelerates the survival of the fittest, the brand concentration will become higher and higher in the future. Eventually it will be reduced from the current 20 to 5~6.

Zhou Xiucheng, a researcher at Shanghai Fortune Group, believes that with the rising purchasing power of domestic consumers, the market share of international brands will increase. The local brand will usher in the integration tide in the most difficult period of the industry. The first step is to integrate distribution networks, including slowing down the opening of new stores, closing inefficient branches, and so on. Next is the integration of brands, and small and medium-sized sports brands will become targets of acquisitions.