Two Fatal Short Boards Of Sporting Goods Industry: Rapid Expansion And Product Homogenization

The London Olympic Games just finished in 2012, our athletes have made brilliant achievements. In the aspect of sports brand competition, Chinese sports brands have begun to move towards the international market.

However, insiders pointed out that Chinese sports brands still need to run a difficult marathon to go abroad, and how to make further breakthroughs in the field of sports brand has also become a new topic facing the industry.

Local sports brands want to break through

In 2012, the London Olympic Games came to a close in the fierce competition. It attracted the attention of Olympic athletes as well as the Chinese sports which appeared frequently in the Olympic Games.

Brand.

In order to make the marketing of the Olympic Games, the famous sports brands in China are almost everywhere. They have won the sponsorship power of many countries.

In this Olympic Games, the traditional Olympic marketing force.

As always, he supported the sponsorship of five gold medal "dream teams" - gymnastics, table tennis, badminton and other sports teams. Anta also refused to be outdone, and won the Chinese delegation's "champion dragon suit" and the sponsorship of several countries in one fell swoop.

and

It was also aggressive in sponsoring 7 delegations including Iraq, New Zealand, Slovenia, Algeria, Lebanon, Jordan and Cyprus.

In addition, Jordan sports (micro-blog) designs award suits for 3 delegations from Kazakhstan, Turkmenistan and Mongolia. Apart from sponsoring 6 Chinese national teams, the 31st degree also sponsors 6 national teams, including North Korea.

The industry said that China's sports brand tried to drive sales through the Olympic Games, and pushed the brand influence to the world.

"This has become a consistent desire of local brands."

Although the Olympic Games are over, the enthusiasm of the sports brand is still continuing, and the major brands have launched discounted promotions after the Olympic effect.

Recently, in Lining, Nike,

And other entities in Beijing understand that the original price is 148 yuan, compassionate, 74 yuan after the discount, the original price 299 long sleeved coat, after folding 149 yuan......

Nearly 100 products offer 30 percent off, 50 percent off or even 70 percent off discount price.

Lining, a shopkeeper in Changping, Beijing, told reporters: "now the stores are offering discount promotions according to the above requirements. On the one hand, they are celebrating the London Olympic Games, and on the other hand, to meet the seasonal changes and welcome the autumn listing. When it comes to the end of the event, we need to wait for the notice above to know."

The hidden danger of rapid expansion

In fact, unlike the 2008 Olympic Games, the Olympic Games were worse than the European debt crisis, and the US economy was weak.

The industry pointed out that although the major brands have used the Olympic Games to enhance the value of their brands, many domestic sports brands have been expanding rapidly in recent years, and the hidden danger of expansion has gradually emerged as the economy slows down.

Rough statistics show that in 2007 -2009, there were nearly two stores added to the domestic sporting goods enterprises.

At the same time, the sales volume did not reach the expected level, but the inventory pressure gradually increased.

Among them, Lining's annual report shows that its inventory reached 1 billion 130 million yuan last year, almost two times that of 2008.

The stock of other major sports brands is also huge.

Anta stock 618 million yuan, XTEP inventory 671 million yuan, 451 million yuan, 331 degrees, PEAK inventory 421 million yuan.

The reduction of annual orders and high inventory have made Chinese sports brands complain incessantly.

However, domestic sports brand inventory has increased year by year, but sales performance has declined to varying degrees.

Data show that Lining orders in the fourth quarter of 2012 fell by 20% over the same period, the amount of orders in 2012 was down 20%-30% in the fourth quarter of 2012 and the decline in orders in the fourth quarter of 2012 was at least over 10%.

The reporter interviewed Mr. Lining, a Wuhan distributor at the division gate. Mr. Wang complained to reporters: "the continuous increase of company stores and the annual ordering of inventory tasks are very stressful to us."

According to Lining's distribution network, the head office of Lining consists of East China and Southern China sub branches. Under each branch there are several major distributors, and there are many distributors directly facing the market under each dealer line.

Mr. Wang is one of the distributors. He got the goods from the dealer at the upper level, and the speeding company purchased directly from Lining Beijing sporting goods company to earn the difference.

A second tier city like Wuhan has been an important market for Lining. Just two hundred or three hundred meters long at the entrance of the Wuhan department, there are 3 Lining stores, one of which is the newly opened shop.

"Since the distributors opened their stores, their annual turnover has decreased by about 20%."

Mr. Wang said that the goods that could not be sold could only be stacked in the warehouse and sold at a special price.

"This exposes a series of development problems of Chinese sports brands in the face of a wave of sports upsurge, such as excessive inventory, too fast expansion, too many shops and high degree of homogeneity of products."

These people told reporters.

Where is the way out for local brands?

"A series of contradictions prove that the glittering Olympic Games can not ignite a fire for the local sports brand market."

The people interviewed by reporters think that, at the same time, the serious homogenization of products has become another fatal short board exposed by the sporting goods industry.

As a matter of fact, local sports brands in the operation of enterprises have problems such as inadequate brand subdivision, unclear brand positioning and so on, leading to serious homogenization of sports goods market.

The competition among local sporting goods companies and the weak sense of local culture are also the main factors causing inventory backlog and single profit problems.

"Domestic sports brand hopes that the Olympics will break the siege of ADI and Nike, and it will not be very realistic to move towards the international market."

Wang Zongwei, a well-known lawyer in Beijing two high law firm, said.

What is the way out for local sports brands? Insiders believe that under the background of the weakness of domestic brands in the international and domestic market, whether enterprises should optimize and reorganize their resources, merge a group of enterprises with strong strength, weak brand influence and less market share, integrate resources and occupy the market with strength?

Hu Xingdou, an economics professor at Beijing Institute of Technology, said that the merger and reorganization is very good, but for Chinese people, it is not easy to achieve it.

"From a policy point of view, the government strictly controls the speculation of some immoral enterprises on the one hand, but also prevents the local brand enterprises from bringing into play the mechanism of market self-regulation. If the enterprises want to grow and expand, the government should create a good legal environment for local brand enterprises, and a loose financing and fund-raising market environment is conducive to the growth of enterprises."

"From the point of view of industry, local brands need to focus on local brand building if they want to break through."

Hu Xingdou, for example, thinks that Lenovo, as a private enterprise, can be regarded as a powerful force in the international and domestic markets. This is due to their importance to brand building, technological research and development, top teams and accurate grasp of the market.

And the local sports brand enterprises to make big and strong, must stand in the high level of international competition, look at and plan the development of enterprises, although their own start at the low end, but the positioning must be in the high end.

Only in this way can enterprises occupy market share.