Analysis Of China'S Depressed Sports Brand Mid-Range Market

As the ripples of Lining's storm rippled, everyone focused on the center of Lining's storm eye, but ignored a series of brands, such as Adidas, Nike, Anta, XTEP, and 361 degrees, which stood beside Lining.

We find that this is not only a brand crisis, but also a market crisis.

Lining's struggle behind a lot of sports brands

Recently, Lining's news has grabbed the layout of many multimedia websites: declining orders, shortened concession period of Lotto trademarks, sponsorship of CBA at high price, failure of brand reconstruction of "post-90s Lining", bankruptcy of Spanish authorized companies, high-level personnel pfer, and Lining's resurfacing.

This series of events has attracted continuous media attention and has exposed the current situation of Lining's deep water.

In addition, the performance of Li Ning Co in terms of data is not satisfactory.

Compared with the same industry, the circulation period of Li Ning Co is 73 days, doubling the circulation period of Anta, and the stock has reached 600 thousand backlogs.

For a moment, all the spearheads were directed at Lining.

But when the public opinion boom in the pawnshop is over, we can calm down and look at the sporting goods market.

It is not the only victim.

The market value of listed shoe companies and the problem of high inventory have swept through many well-known brands overnight.

In July 2012, the ranking table of shoe enterprises' market value can clearly see that in the 15 listed footwear enterprises, except for a small number of 4 shoe enterprises, the market value has risen, and the rest of them have shown a downward trend without exception.

The middle market is cold, high and low, and continues to be hot.

Looking at the Chinese brand market, sports brands occupy most of the mid-range market of Chinese brands. Lining brand was originally located in the middle market, and then went to catch up with Adidas, Nike and other brands to the middle and high-end market.

Similarly, there are Anta, XTEP, and 360 degrees.

We find that brands of such positioning are more or less affected.

If this is a collective Bermuda Triangle lost journey of Chinese brand, it seems unfair to some high and low end brands, while the sports brands are generally cold, there are also many dark horses in the sight of people.

Lining is in sharp contrast to the upscale market represented by Hermes and the low - level market represented by Internet merchants such as South Korea.

According to the blue book of the 2011 official report of the World Luxury Association, the total consumption of China's luxury goods market has reached US $10 billion 700 million, and it is estimated that it will overtake Japan as the world's largest luxury consumer in 2012.

Among them, LVMH sales in the first quarter of 2012 amounted to 6 billion 600 million euros, an increase of 25%.

Hermes 2012 second quarter sales reached 814 million 500 thousand euros, an increase of 13.4%.

In view of the rising demand for high-end luxury goods and the increasing trend at a certain rate, the prospect of high-end market in China and the "money scene" have been well received.

On the other hand, the low-grade market represented by Internet merchants is also eye-catching.

The overall development of the electricity supplier market is flourishing, and the development of many Internet commerce brands is more gratifying, but in a few years, there are already many familiar with them.

Emerge and grow at a high speed.

Structural saturation or M consumption?

More and more people have recovered their attention from Lining and have read a series of difficult problems encountered by sports brands from the perspective of market.

According to the sporting goods industry report, "the 2011 annual reports released by Lining, Anta, 361 degree, PEAK and other sporting goods companies jointly reflect the industry phenomenon of declining sales growth, declining profitability and increasing inventory problems.

However, we believe that the overall market capacity of the sports brand has not changed fundamentally. The backlog phenomenon is not a real market saturation, but a "structural" saturation phenomenon.

2012 is the year when the growth rate of domestic sports brands has slowed down, but for some brands, it will be an opportunity for adjustment and change.

In the face of the media, Lining responsible person also issued a similar voice: "sports goods market is not too big problem, the current situation is only short-term supply exceeds demand."

Anta CEO Ding Shizhong also believes that after the current inventory problem, the sporting goods industry will develop.

At the same time, many media have reported China in different angles.

Faced with the structural problems, as we seem to have found the answer to the question, Lang Xianping, a famous economist, put forward a completely different view on the trend of China's consumer market at the twelfth China (Shenzhen) international brand clothing and Fashion Fair.

Lang Xianping analyzed that the stock price plummeted resulted in the reduction of wealth, and the serious inflation led to the reduction of purchasing power. About 86% of China's people decided to reduce consumption, while the remaining 14% concentrated on high-end consumer goods, and the original mainstream purchasing power atrophied, so it sank to the low-end market, which formed the hollowing of the middle market.

This is the so-called M consumption mode, that is, two big, middle small, 14% of the rich buy high-end products, 86% of the people buy low-grade products, the mid-range products are shrinking.

The two party theory is competing with each other. The huge crisis facing the middle market is an indisputable fact. The recession of the economic environment is undoubtedly an inducement, but this has not caused a general downturn in the market. The high and low end market's rising trend is evidence. The middle market itself will eventually find its own reasons. The middle market should match the largest share of the middle class consumer group in China.

Postscript: say Lining to Lining.

The reason why sports brands encounter this collective crisis is complex. The industry analysts say that "the low technology content in the shoe and clothing manufacturing industry, the compression of the profit space in the labor-intensive industries, and the disadvantages of the long term gene pattern of the local brands.

And the government's support for small and medium-sized enterprises, especially the pure production enterprises, is slowly shrinking, which makes the survival pressure of the shoes and garment manufacturing industry base bigger and bigger.

When the market is cold, enterprises may return to market analysis, accurately grasp market trends, and firmly commit themselves to market segmentation to find a real way out.

Waiting for the market to warm up is no doubt a passive choice. In adversity, it is only by taking the initiative to win the opportunity.

Though there is no final conclusion, Lining, the protagonist of the story, will tell us in real action how they will choose and stick to it in the middle market.

At the end of the story, we return to Lining himself, from the prince of gymnastics to the national brand that gallops in the international arena. What we see in him is not only a sports brand, but also a spirit of courageous pursuit and unremitting efforts.

From the resplendence of the rise of the local brand to the crisis of being called the third venture by the media, Lining has not flinched. Just like his slogan, "let the change take place", we also expect Lining to return to life again and return the prince.

The concept of M society proposed by Japanese Management Master Kenichi Ohmae is mainly to describe the 2 Extreme concepts that Japanese society changed from the middle class to the rich and the poor. He thought that the middle class lost to the middle and lower strata because of losing competitiveness. The wealth distribution of the whole society suddenly had a big gap in the middle. Like the M font, the poor on the left became more and more rich on the right side, but the middle part suddenly fell down and disappeared.