China's Economic Development Slows Down? For Sports Brand Decathlon, It's Like A Joke.

In 2020, Decathlon's sales in China will account for 1/4 of the total. Retail sports brand Decathlon will open 50 new stores in China this year.

China's economic growth is slowing down? For Decathlon, this is like a joke.

As a local sport in France and Europe, it is a top class sporting goods. Retail brand Decathlon still maintains a strong momentum in China, but it is not because of the coincidence of the economic situation, but because the potential of the Chinese market is huge, and there is no sign of any weakness in development. Decathlon, jointly owned by the Murri Yates family and the Lyk (Mulliez) family, expects to open at least 50 new stores in China this year, close to half the number of existing shopping malls in China. (Leclercq) In 2003, Decathlon opened the first shopping mall in Shanghai. Now the number of shopping malls in Greater China has increased to 135, including 6 in Taiwan. By the end of the year, the total will reach 160, including 8 shopping malls in Taiwan.

Rapid growth

"China is one of the countries that Decathlon enjoys the priority," said Bertrand Tison, Decathlon's Greater China Development Director, to the Les Echos. Although he refused to disclose the amount of Decathlon's investment, he said, "in 5 years, the country's sales will probably account for 25% of the company's total sales." The company clearly stated that Decathlon has opened up 60 cities in China, and the number of newly opened cities has reached two digits. The number of new cities will double in four years, reaching 120 cities.

In order to adapt to the rapid development speed, Decathlon China is ready to expand its logistics storage area to two times of the current 386000 times by the end of 2016, all of which are applied to the Chinese market. Decathlon's first landing City, Shanghai, will have third warehousing expansion, reaching 68000 in 2016. The storage area in Beijing remains unchanged. It is still 80000. Dongguan, as a distribution center for supplying the south, will increase its storage area from 40000 to 88000 by the end of 2016. In addition, two new Decathlon landing city logistics warehouses will be built by Jiaming group. "One in Wuhan will reach 80000 at the end of 2015, the other in Shenyang, supply to central and Northeast China, and 74000 will be built by the end of 2016." Bertrand Tison said in detail.

"Despite the recent financial crisis, we have not been affected by the crisis in China's sales market," Bertrand Tison said. "In Decathlon, all indices are turning green, and in the next five years, China's gross national product will grow by more than 6%." According to the forecast, the global sports sales market will expand in the next 10 years, and Asia will account for 60% of the expanded market, of which China will account for 2/3. The value of the Chinese market is between 15 billion and 25 billion euros, two times that of France. In addition, even if sales suddenly stagnate, compared with other international brand prices, Decathlon has competitive price positioning and its brand advantage. "This is the most effective way to save the crisis," Bertrand Tison said. "We have confirmed this in the western market."

Decathlon is now an important player in the multi market sports market. Industry competition 。 "At present, our main competitors are brands like Nike and Adidas, and local brands such as Anta and Lining. They set up stores in large shopping malls or business districts, selling clothing and shoes." Bertrand Tison commented. Sporting goods retail global leader Intersport has an annual turnover of 10 billion 600 million euros and Decathlon turnover of 8 billion 200 million euros. However, in 2012, Intersport established a partnership with a Real Estate Company in Southeast China, and only later entered the Chinese market, with only 10 stores. As for Russia Sports goods Sportmaster, a retail leader, has just entered the Chinese market two years ago and has only a dozen stores in the north.

Control the whole industry chain

At first, Decathlon opened stores in the five small cities of China, Shanghai, Beijing, Guangdong, Chengdu and Shenzhen, and the population of these cities was between ten million and twenty million. Then, between 2008 and 2010, Decathlon opened stores in thirty of the second tier cities with 3 million to 10 million people. Now, Decathlon is moving towards a more remote three tier city. "The people there are not as rich as the first-line and second-line people. The key to our success is to use high quality sporting goods and competitive prices to cater for the" non physical needs of sports ", Bertrand Tison stressed. The whole industry chain of Decathlon has reduced the cost as far as possible. In China, the layout of the whole industry chain has involved all aspects of R & D, design, production, logistics and retail business network.