How Does The Olympic Games Affect The Footwear Industry?

In July 2001, Beijing won the right to host the 2008 Olympic Games. In the face of rare historical opportunities, the government began to vigorously support sports competitions and sports activities. In 2008, the government and all sectors of society raised the highest degree of attention to sports. Haiberg, chairman of International Olympic Committee Market Development Committee, once said that the development of tourism and sports industry will fully reflect the Olympic effect.

At present, China's sports industry is still in the initial stage of development worldwide, but the hosting of the Olympic Games will bring great development opportunities to this. More international capital will flow into China. The public's awareness and interest in sports and fitness will be greatly enhanced, and the elimination of sports goods will be stimulated. At the same time, the Olympic Games will also bring opportunities for China's sports industry to integrate downstream and downstream.

The international and domestic sports brands have taken advantage of their strategic advantages in China, and the series of actions they have made have intensified the competition of the industry.

What are the opportunities and threats facing the Olympic Games and sporting goods industry?

How does the competition pattern change?

This article will talk about the impact of the Olympic Games on the sporting goods industry from the scale and growth forecast of sporting goods market, the change of industry value chain and consumer demand.

First, the size and growth of sporting goods market. The driving factors of the growth of China's sporting goods market include the growth of personal consumption, the participation of sports and the strong support of the government.

1, the growth of personal consumption, personal consumption directly promotes consumer spending on sports goods. From the data point of view, the per capita GDP in 2007 exceeded US $2000, and the contribution of consumption to GDP growth in the economic growth exceeded exports for the first time.

According to the macroeconomic regulation and control policy of the country, the future economy will continue to be pformed from investment and export promotion to the coordinated growth of consumption, investment and export. Therefore, the domestic consumption space will further expand.

The Olympic Games, urbanization, income level and so on have promoted the continuous improvement of domestic sporting goods consumption expenditure, and the pformation of Chinese consumption concept and health awareness will further promote the further development of sports goods consumption in China.

On the other hand, at present, the economic situation is grim, food prices are rising, the stock market and the housing market are cooling down.

In this regard, we believe that the level of consumer income growth is a fundamental factor affecting the consumption of shoes and clothing, while in the first quarter of 2008, revenue growth increased by 19.2% over the same period.

Frost & Sullivan once counted that the average annual expenditure of sporting goods in China in 2006 was US $2.9, far behind many developed countries, such as the United States, Canada, Britain, Germany, France, Australia, Japan, Korea and Singapore.

According to the current macroeconomic situation in China and the market growth in previous years, we believe that with the improvement of domestic living standards, the annual Olympic Games, the 2010 Shanghai World Expo and Guangzhou Asian Games will increase by more than 10% per year in the next few years, much higher than those in developed countries.

2, the participation of sports in Beijing 2008 Olympic Games has greatly enhanced the Chinese people's sense of national pride and enthusiasm for participating in sports. China sports health has become the pride of the nation because of its remarkable success in sports and motivates the younger generation to take an active part in sports activities.

In the past few years, people's participation in sports has increased steadily. According to statistics, 450 million people participated in sports in 2005, an increase of one hundred million over 1997. According to the plan of China's sports industry, the goal of the government is to reach 550 million by 2010. In recent years, the participation of sports will continue to grow at a certain rate.

3, the government's strong support for the government launched the "national fitness campaign" in 1995, greatly promoting the development of the domestic sporting goods market. In the same year, 230 thousand community fitness facilities were built in the residential areas, and more than 2.3 sports tracks were built. In 1995, more than 300 million people participated in the "national fitness week".

After the successful bid of the Olympic Games in 2001, the government further promoted the campaign of "nationwide fitness", and the area of per capita sports activities gradually expanded, which greatly promoted the demand for sporting goods.

In the past 5 years, the area of sports activities per capita has been gradually expanded at a compound annual growth rate of 12%, and it is expected to increase at that rate in the next 5 years.

Overall, with the opening of the Beijing Olympic Games, China's sporting goods industry will enter a new stage of development.

According to past international experience, the Olympic Games will increase the overall demand for sporting goods by 4% higher than that in normal years. According to China's situation, domestic sporting goods demand growth is expected to be 8% higher than that in normal years. Combined with the current actual economic situation, we predict that the annual compound growth rate of sporting goods will be 20% in the next few years, and the sporting goods market will reach 141 billion yuan by 2011.

Two, the changes in the international and domestic economic environment of the industry value chain, the impact on the export, the chain reaction brought about by the implementation of the new labor contract law, the further pressure of RMB appreciation, and other factors, make the survival environment of the SMEs more serious, and the large enterprises solve the crisis through means of upgrading product structure, restructuring industrial resources, gradient pfer, brand innovation, diversification of channels and expanding financing, so as to achieve the comprehensive upgrading and development of enterprises.

As the biggest event in the world, the Olympic Games will attract 2/3 of the world's attention to Beijing and China. Therefore, the domestic market will become the focus of Rio Tinto, and the competition for industrial resources will become more intense, and all aspects of the industry value chain will be changed.

1, industry concentration degree, the market concentration of Chinese sporting goods brands is far lower than that of developed countries, and the market concentration degree is inevitable in the next few years.

Inflation has accelerated the survival of the fittest, and enterprises with brand effect will benefit from inflation because of their ability to raise prices. Instead, they will experience the brutal test of rising costs. The industry will face integration. Powerful enterprises will have opportunities to merge inside and outside the country. At the same time, with such a stage as the Olympic Games, famous enterprises will take advantage of their widely distributed channels, strong brand awareness, sophisticated product R & D and innovative marketing strategies, seize opportunities to enhance brand effect, expand consumer groups, further enhance their strength, vulnerable brands will be squeezed by the market, be forced to shut down or buy over under pressure, and the future sporting goods industry will become stronger and stronger, with weaker market and industry concentration further improved. Current

2, the supply and production of raw materials this year, the state has introduced a series of macro-control measures, the implementation of the new labor law, the five degree increase in the deposit reserve ratio, making the scale of frozen funds up to 422 billion 200 million and so on. A series of monetary tightening policies directly led to the production costs of labor-intensive enterprises such as shoemaking, and the capital chain was in crisis.

On the other hand, with the rising cost of manufacturing enterprises with capital strength, there is also an opportunity to expand production capacity through acquisitions, and the concentration of the industry will be further improved.

3, R & D design trend Green Olympics is one of the important ideas put forward by the Beijing Olympic Games. All brands are also playing the role of environmental protection banner, so as to put forward the concept of green brand in the application of eco leather, green environmental protection materials and recyclable materials in product development.

Some parts of all sneakers on the Grun series of Adidas Originals are made from recycled materials.

The Olympic Games have increased people's enthusiasm for sports. At the same time, because of the attention to the Olympic Games, the pursuit of professional sports will be strengthened. Therefore, products with strong functionality will win consumers' preference.

In addition, because of the high quality requirements of consumers, high and new technology will be applied in raw materials.

For example, ultrasonic technology, electronic technology, microwave and high pressure technology have been applied to leather field, such as nano technology will also be applied to leather making process, and also has great influence on leather design and manufacture. Sonic technology can make leather more uniform and can make the enzyme pferable, and also can reduce the waste of leather.

Nowadays, with the increasingly personalized consumption demand, enterprises are paying more attention to using personalized design and attracting consumer participation to attract consumers.

In April, NIKEiD was officially launched in China. From April 24th, Chinese consumers can log in to NIKEiD.com.cn and choose their favorite Nike products anytime and anywhere, and make personalized product design for their own NIKEiD products.

Adidas then launched the advanced custom mi Originals series. At present, consumers can only experience the customization fun of MI Original in Original shops in Berlin and New York, but it is worth noting that Beijing will be the next destination of MI Original landing through the identity of "Olympic Partner".

4, marketing and brand management for such a big stage of the Olympic Games, many enterprises will not let go of the opportunity to become a world brand.

As a sponsor, Adidas has worked hard for the Olympic Games to develop series activities including news conference, Internet interactive experience, sports art exhibition and mass sports activities.

Other non sponsors are also playing the Olympic edge ball for invisible marketing.

As an Olympic partner, Adidas has set up a brand protection team to protect its brand interests.

For Lining, the new regulations stipulate that the hosts and guests of CCTV studios will stop wearing clothes with Lining logo during the Olympic Games. Recently, Olympic athletes endorsing non sponsors' advertisements were also classified as invisible infringement, which was stopped during the advertising control in from August 1st to 27th. This is a collective bloodletting for non sponsors.

In the marketing mode, in the past, international brands such as Nike and Adidas adopted the "Pyramid" brand promotion mode, while most domestic brands mainly adopted the "inverted Pyramid" brand promotion mode.

The so-called "Pyramid" brand promotion mode is to provide athletes with high performance sports equipment to help athletes achieve the desired competition results, thereby affecting more amateur athletes and weekend explorers to buy products. By satisfying this level of consumer demand, we can get word of mouth, and then affect the mass consumer group.

The brand promotion mode of "inverted Pyramid" is to convey product information to consumers through the media, but it is difficult to satisfy the needs of amateur and professional athletes.

The reason is that the quality of products is not high enough to reflect the lack of R & D power.

The Olympic Games fever has swept some domestic brands to choose the "Pyramid" way to promote their professional image.

In addition, enterprises will pay more attention to the interactive experience with consumers in the marketing process, and network marketing, especially the cooperation with sports and entertainment channels, is also sought after by enterprises.

In the future, enterprises will focus on providing experience for customers with services, create products that are worth remembering for consumers, focus on communicating with consumers, and observe and design their products and services from the perspective of consumers.

5, the distribution channels and the channels of the channel get the world. The Olympic Games are the Olympic Games. When the brands expand the distribution network, the main competitors begin to strengthen the integration of the distribution network, control the flagship stores and monitor the franchisees, so as to achieve the control of brand image, personnel service / training and pricing.

First of all, retailers are faced with integration, and shoe industry channels are developing towards scale and centralization.

And the survival of the fittest of distributors and franchisees has also improved the bargaining power of the channel, and the brand enterprises with their own channels will gain greater market advantage.

Secondly, the channels are gradually sinking to the urban and rural areas. The Olympic Games will stimulate the consumption of the low and middle market. The future competition will be infiltrated and scrambled in the two or three tier cities.

According to statistics of Frost & Sullivan, in 2006, the total population of China's cities reached 577 million 100 thousand people, accounting for about 43.9% of the total population. It is expected to increase to 50.3% of the total population in 2011. For domestic brands, two or three line cities have always been an important strategic market, and the most direct direction of urbanization is the rapid expansion of the two or three line cities. International brands such as Adidas also plan to open stores in county-level cities.

In the future, there will be more and more low-end products will enter the two or three tier market, and competition will become more intense.

Thirdly, because of the limited channel resources and the rising cost of opening stores, more and more enterprises are paying attention to the new mode of network sales.

If Lining set up flagship store in Taobao, Nike will launch ID business in China.

Three, the consumer trend of the Olympic Games has aroused people's enthusiasm for sports. Without doubt, the Olympic Games will bring more fresh ideas and advanced lifestyles to the fee holders.