Sports Brand After The Curtain Call Of London Olympic Games

At the 2012 London Olympics, Lining The brand of Chinese sportswear, such as Anta, 361 degree, PEAK and so on, is constantly flashing before the audience. Today, the London Olympic Games have already ended. For the sports brands who are keen on sponsoring Olympic events, intensive flash has subsided, and tens of millions or even billions of dollars in sponsorship fees have been paid. The immediate sales battle is placed in front of the major sports brand enterprises.

From the past situation, some sports brands become Olympic sponsors, and with the expansion of brand awareness, enterprises have gained huge gains in a short period of time. Taking the 2008 Beijing Olympic Games as an example, China's major sports brands have welcomed their own spring. In those years, their sales increased greatly. For example, Lining, in 2008, the income growth rate was as high as 54%, becoming the fastest growing year after the listing.

But not after the Olympic rings, you can always walk well. In the latest data of the Qing Research Center, the reporters found that since 2009, the growth rate of the local sports brand's income has shown a significant downward trend. According to the earnings data provided by various companies, the two biggest brands of Lining and China were the most prominent in 2011, with a negative growth of 5.8% and 35.66% respectively. At the same time, 361 degree and PEAK's situation is not optimistic, the annual decline is more than 10%. Relatively speaking, Anta A steady development trend has been maintained, with an average annual income growth rate falling by only 3.4%.

Entering the first half of 2012, the Chinese Movement clothing The overall operation of the industry is also faced with severe problems such as declining sales, declining profits, excessive inventory and confusion in sales channels. According to Lining's report on business operation and financial situation released in June, the amount of new product orders in 2012 is higher than that of last year. According to the results of the order meeting, the company expects that the sales revenue in 2012 may be negative than that in 2011, and the profit before tax will be greatly reduced. Moreover, in Anta's latest first half of 2012 earnings report, its turnover decreased by 11.6% to 3 billion 930 million yuan compared with 2011, and shareholders' share of interest fell 17%, and the order amount was also a high percentage decline in unit number. PEAK, also a sports brand listed on the Hong Kong stock market, is not optimistic this year, and is down 20% - 30% compared with the same period last year.

Despite the reality of the downturn, brands still showed a positive attitude towards the 2012 London Olympics. After the 2008 Beijing Olympic Games, Anta spent 600 million yuan to win the sponsorship of the award dress again in the London Olympic Games. Lining also refused to be outdone, sponsoring diving, table tennis and other advantages, as well as Spain, Sweden and other Olympic delegations. Similarly, Hongxing Erke, PEAK, 361 degrees and other brands also sponsored foreign delegations.

According to the analysis of Qing Ke research center, the Chinese sports brand needs to clear its mind and analyze the marketing difficulties behind the Olympic halo from two sides.

First of all, from the advantage point of view, the sponsorship of the Olympic Games is conducive to enhancing brand awareness and market share, and boosting sales. In the Olympic Games around the world, trademarks of awards and costumes are frequently exposed in front of cameras. Brand communication is far more direct than other ways. At the same time, the London Olympic Games are more conducive to the development of Chinese sports brands in overseas markets, such as Europe, prompting China to get rid of the image of a manufacturing power and move towards a brand power.

Secondly, from the disadvantage point of view, the major brands are willing to invest heavily in the sponsorship of Olympic Games. Whether such a high investment can bring a high return on sales remains to be proved in practice. At the same time, China's sports brand annual marketing expenses and R & D costs are in stark contrast. Taking Lining and Anta's two sports brands as an example, advertising and marketing expenses accounted for more than 13% of sales revenue in 2011, while R & D costs accounted for only about 3%. In addition, from the perspective of China's clothing market, the advantage of cheap labor is gradually disappearing. How to make short-term Olympic sponsorship bring long-term sales growth has become a primary consideration for Chinese sports brands.