What Is The Difference Between Domestic Brands And Nike ADI?

Not long ago,

Lining and PEAK are famous in China.

In the first half of 2015, financial reports were released, showing signs of recovery. The first half year performance of Li Ning Co, which has been losing money for nearly three years, shows that the current revenue increased by 16% to 3 billion 641 million yuan.

After a loss of 586 million yuan in the same period last year, the loss in the first half of this year decreased by 94.98% to 29 million 407 thousand yuan.

Anta's performance is the most eye-catching and its performance ranked first among domestic sports brands. Net profit and operating income in the first half of the year reached 965 million yuan and 5 billion 110 million yuan respectively, up 20.2% and 24% compared with the same period last year.

Other domestic brands, such as PEAK and XTEP, also do well.

According to industry analysis, the recovery of domestic sports brand is closely related to the promotion of national sports and the dividend policy of national sports industry.

However, the crisis of domestic sports brand has not passed.

The competition between domestic brands and Nike ADI has always been at a disadvantage. Now the market of basic high-end sports products has been occupied by foreign brands headed by Nike ADI, and domestic brands are mainly in the low-end market.

Lining tried to join Nike ADI's first group, but the attempt ended in failure. Lining did not slow down for several years.

In terms of price, the domestic sports brand is reasonable, generally lower than ADI Nike and so on.

For example, Nike has a new pair of shoes, a pair of selling over 1500 yuan is normal, 80% of which are brand premium and design costs.

The price of domestic sports brand shoes is 1/3 of this, including clothing sports equipment, the price is much lower.

It is understandable that the cost of raw materials, the rising cost of human resources, the rising price of facade, and the rising price of final products are understandable.

The price of domestic brands is lower than that of ADI Nike when the cost of raw material is comparable. It has already indicated that the enterprise knows its position, so the price positioning of sports brand is not wrong.

The real weakness of domestic brands is the obsolete marketing methods, and the poor product design and technology content.

I still remember in those years after the lowest brand of domestic sports brand, one of the main means of dealing with crisis is endless discount. "Buy one get one, buy two get one". Even when the autumn dress just went public, it began to discount sales. The endless price cut led to consumers' suspicion of the brand value, which further weakened the purchasing power, and production and marketing fell into a vicious circle from the end of 2011.

In addition, from the 90s of last century to 2010, China's sports brand started a period of crazy expansion, and sports brands such as big and small have been emerging one after another.

Because the market is in good condition, each brand has started the process of crazy shop, but the selection and planning of the city, business circle, distributors and so on are not rigorous, and even appeared the same brand franchisee in a street.

This has also created difficulties for the pformation of sports brands to usher in the cold winter season.

In the final analysis, the lack of high-end design talents and the homogenization of product design are the reasons why domestic sports brands can not compete with Nike ADI and other international brands.

Although the price is not high, but because of the lack of design, resulting in the illusion of cheap products, so many consumers in the eyes of the Chinese brand design is not as big as the second, the price is not playing cards with the people.

Some consumers have described a psychology. "If I want to buy a pair of running shoes, I will give priority to ASICS, Nike or new bun. If I dirty all the clothes in the countryside, I will buy some domestic brands to help them urgently, because they are wearing at least a brand that has lost their dirty."

This is not an isolated phenomenon.

This phenomenon, from a good point of view, has also given the domestic brand an inspiration, that is, temporarily abandon the high-end market, return to the value itself, advocate the low-end route, ensure long-term profits, and invest in R & D funds to maintain the brand on the premise of continuous development of the manufacturer, and then raise the price.

For example, Anta once had a sneaker called "cement killer", which was especially popular with students. It was not an advertising endorsement star, but a special simple and pure selling point -- sole wearable.

It is to want to play on the most concrete ground of Chinese basketball court, the Nike sneakers that actually wear glue bottom have a few more, unless you are true "local Hao".

Now many domestic sports brands also seem to recognize this problem, such as low end and practicality trend is more obvious.

However, in the field of middle and low end sports shoes and clothing, there is still a domestic sports brand that can not be underestimated or even fatal. It is a professional sports mall mode represented by Decathlon.

If Nike ADI blocks domestic brands in the high-end sports market, then professional sports supermarkets like Decathlon are likely to become the grave diggers of domestic sports brands in the low-end market.

As of June this year, Decathlon opened 81 stores in 35 cities in China, and at the same time, completed the signing of a number of prefecture level cities.

Decathlon is pushing ahead with its plan to achieve 150 stores in the Chinese market by 2015, targeting the western and two or three tier cities.

From the initial first tier cities to the two or three tier cities now, Decathlon is striving to expand the number of cities stationed in the city, hoping to focus on the "dot" of big cities and become a "network" covering the whole country.

So far, Decathlon has almost completed the coverage of China's second tier cities and began to infiltrate into the three or four line. The same type of Russian sporting goods brand sportmaster has begun to enter China. Can the Chinese sports brand retain its "private land" in the two or three tier cities?

Anta and Lining, as the leading sporting goods industry in China, have withdrawn from direct competition with Nike ADI.

There is a bit of well water that doesn't break the river, and Decathlon can't because he and Anta Lining just hit the target, and the target consumer group almost coincides.

The products of domestic brands are not inferior to Decathlon in terms of workmanship and design. If the gap is made, they are more professional.

Now Anta has the advantage of thousands of stores, so there is no competition with Decathlon.

But there will be more and more malpractices in the future store stores. When all sports professional attributes are stronger and stronger, consumers are all shoes and sports. At this time, Decathlon's advantages will be reflected, because it can provide more professional and cost-effective sports equipment.

If anyone predicted that one day the domestic sports brand would be copied by Decathlon, it would not be alarmist.

Think of ZARA and H&M's example of driving Metersbonwe and YISHION out of the first tier cities.

What is even more frightening is that because of Decathlon's low-end positioning, if the domestic sports brand is finally defeated by it, the last retreat can only be China's townships.