The Joy And Worry Of Decathlon, A Sports Brand, In The First Small In North China

Last December 31st, with the opening of the new store in Decathlon Nankai District, Tianjin, the number of Decathlon shops in China was 166.

Decathlon has made a detour in the Chinese market after public positioning and high performance price ratio. However, it is hard to say how long it will be able to fire if it is carried out step by step.

The first sMall in North China

It is understood that the store is located in the southwest corner of Miyun Road and the Yellow River Road intersection in Nankai District, Tianjin. The new large city complex shopping and entertainment center, "Xi Yue Hui square", has a business area of 1263 square meters, and opened with the xhui Yue square.

This is Decathlon's first DeCAThlon sMall Decathlon shopping center project in Tianjin and North China. It is about to combine small (small) and shopping mall (shopping mall).

In fact, the land area of Decathlon in other markets is 10000 - 30000 square meters, which is suitable for opening a single shopping mall with a business area of 4000 - 12000 square meters.

But in China, especially in the first and second tier cities, land resources are scarce and land prices are high. In addition, more and more people regard shopping centers as their more important and even more important places for leisure and life. Therefore, Decathlon has adjusted the area of shopping malls, and has changed its decoration style according to the commercial environment of shopping centers, so as to ensure that Decathlon small shopping malls can better adapt to the property conditions of shopping centers.

As a result, the sMall model came into being, "to make an innovative business model for the Chinese market," Decathlon official told the new financial observer.

Under normal circumstances, the average area of sMall shops is about 1500 square meters. Most sMall concept stores sign the contract with the owners for the longest period when signing the lease contract.

Decathlon began to enter the Tianjin market in 2010, and has always adhered to the steady development strategy. "Continuous investment at the rate of 1 to 2 per year will gradually expand the market share. In the future, we hope to have 20 shopping malls in Tianjin and occupy the leading position in the mass sports goods retail market in Tianjin."

Its official said.

Although the market in Tianjin is relatively prudent, the situation of Decathlon's nationwide stores has not been slow in the past two years. "It also reflects the fact that Decathlon has found more and more sense in China and has begun to enter the outbreak period."

An observer who has long been engaged in sports brand research said to the new financial observer.

By the end of 2015, Decathlon had 166 stores in Greater China, and at the beginning of last year, the official number of stores was 155.

In the past year, Decathlon has opened 49 new stores in China, and the number of shops opened has reached a new high. In 2016, the number of stores planned to reach 200.

And Decathlon's hope is to increase the number of stores to 500 in 2020, and

It will account for 25% of the company's total sales. "

But in fact, it has been entering the Chinese market from 2003 until November 2014. In eleven years, Decathlon has completed the goal of 100 stores, and in the next five years, it wants to achieve 400% growth. "It is indeed very radical, but it may not be achieved."

The foregoing observers said.

High cost performance ratio

In the newly opened Miyun Road store in Tianjin, people are crowded, even though the New Year holiday has not yet arrived.

Mr. Wang told the new financial observer that he used to go to Hei Niu Niu Cheng Road store to buy it, but far away from home, "this shop is close and convenient."

Mr. Wang is a frequent visitor to Decathlon. "When he is free, he will turn around. He will exercise every once in a while. The biggest feeling is that things are cheap and the quality is good. Relatively speaking, the price performance is quite high."

The high cost performance seems to have become the label of Decathlon, and has become one of the important reasons to attract consumers.

Decathlon has always been proud of its ability to provide support for the sports industry chain, which is the reason for ensuring high performance price ratio.

"Apart from the headquarters of France, China is the first Decathlon to have a complete industrial chain layout, from sports product design, R & D, production, brand to

All of them are in the hands. The layout of the whole industry chain can effectively control the cost, ensure that Decathlon's sports products keep the price of the people close to it, which is within reach for more people. At the same time, through advanced industrial production technology and continuous improvement management with suppliers, Decathlon can fully guarantee that products are low quality and high quality.

Last August, Decathlon put forward a policy of cancelling the previous policy of return in customer experience.

The binding policy must be completely broken within 30 days. After that, there will be no time limit for the replacement service. As long as it is purchased from Decathlon, it can be returned to stores at any time, and there is no need for a small ticket.

This will also increase costs to a certain extent.

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"You will see that its frugality may not be achieved by other brands."

The foregoing observers said.

In China, Decathlon has never sponsored any sports event, nor has it invited a sports star to speak for publicity. Even when the stores are opening, they will not tell the media that "without these budgets, they will naturally save costs."

CEO Zhang Qing, a key sports consulting company in Beijing, agreed and understood the practice of Decathlon.

"Positioning the low price determines that it must control the cost, whether it is a big brand star or a new shop to open the promotion, these costs are consumers' own purchase, so this is the correct choice made by Decathlon based on its own positioning."

He told the new financial observer.

In addition, the rich product category also allowed Decathlon to win the widest range of consumers.

"You can buy mountaineering clothes outdoors, you can buy sailing shoes, even equestrian and fishing gear can be bought, very comprehensive."

Mr. Wang said.

According to Decathlon officials, it currently has 21 passions in China.

It covers nearly 80 sports and 35000 items. A comprehensive and rich product line can meet the sports needs from entry level to professional sports enthusiasts.

Near monopoly

In fact, there is no lack of cost-effective products in the sporting goods market, and Decathlon can be so popular in China, to a large extent, related to the release of people's demand ability.

Zhang Qing pointed out that Decathlon started an explosive growth almost three years ago, and this period is just the beginning of "sports began to enter the middle class lifestyle".

Decathlon official also admitted that in 2003, China entered the first five years, Decathlon experienced a running in period. "After the Beijing Olympic Games in 2008, it entered a period of high speed expansion. On the one hand, after the Olympic Games, the attention of the national sports movement was getting higher and higher, and the public actively pursued fitness and healthy life. On the other hand, Decathlon also set up a development plan adapted to the Chinese market."

The demand on one side has been released. On the other hand, Decathlon's "mass movement" positioning just meets these needs.

In Zhang Qing's view, when sports began to enter the middle class life, although they also had the demand for the professionalism of their products, they didn't get to the degree of professionalism, and the number of entry sports enthusiasts increased greatly.

"Decathlon is the entry-level brand of sports, but the number of consumers at this level is the largest."

He said.

It is precisely because of the public positioning of Decathlon, let it develop all the way, "in China so far has not yet encountered any strong competitors."

Although Decathlon and Nike and other international brands and domestic sports brands coincide, Decathlon believes there is no conflict with consumers.

"Nike brand will naturally filter the consumer, some are too expensive to go, and some do not like it because they do not like it, so it can attract people into the shop is specific. From a certain point of view, these brands and Decathlon face is narrower than the consumer."

Zhang Qing analysis.

The entry level sports enthusiasts first thought of Decathlon's comprehensive sports store, rather than Nike's high-end sports brand.

So in Zhang Qing's view, other sports brands are not Decathlon's competitors. He prefers to regard Decathlon as a channel brand.

As for competitors, Decathlon itself does not seem to regard other sports brands as its eyes. Its official said: "Decathlon has no competitive brand in China at present, but people who do not exercise are our competitors. Decathlon's goal is to let the most extensive public contact movement and feel the joy of sports, so as to continue to exercise and enjoy the joy and health of sports."

Obviously, Decathlon has formed a monopoly position in a niche market, which made it not too much affected in the economic downturn, but this does not mean that the future will be a smooth road.

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Future worries

In fact, in the Chinese market, sports goods retailers like Decathlon are also in the layout, including Russia's largest sporting goods retailer Sportsmaster (Maister) and Switzerland's Intersport.

Because these two brands have entered the Chinese market for only two to three years, so there are fewer stores and no ability to fight against Decathlon.

Zhang Qing pointed out that because China's market space is large enough, other brands should have opportunities to enter, "no subdivision area can exist only such a family."

More importantly, he thinks Decathlon has some "good things that should be done but not yet done".

Zhang Qingzhi is "maintaining relationships with customers or fans."

Although Decathlon regularly organizes some sports thematic activities, it is free to open up to Decathlon users and shopping center customers. However, when users leave the shop, there are very few maintenance and contacts later.

As a member of Decathlon, Zhang Qing feels deeply about this.

"Apart from the promotional information it regularly gave me, I didn't feel any connection with it."

Fifteen years ago, when he visited Decathlon in France, he had already done a lot of colorful activities for his members. He was not good at French. He would have good English people to chat with you, ask your needs and thoughts, and enthusiastically invite you to join the membership.

When you check out, you will recommend a free club for you to buy.

To his regret, he did not realize these fifteen years after the Chinese market.

"Now this is a generalization in China."

In this way, how to build a deeper and closer interaction with users is not enough for Decathlon.

But with such a large sales volume as a basis, it should be easy to do so. "Every person who buys a product should be a member or a fan in theory. When people come to your store to have a relationship with you, you should let him have a lasting relationship with you."

In fact, Decathlon's huge membership is also a good asset and resource. "As long as it is willing to cooperate with other sports organizations and institutions, it can even find new profit points if it is willing to serve members.

For example, the competition and training of holding an event, from selling goods simply to selling services.

Zhang Qing suggested.

But he also admitted that because Decathlon now belongs to the seller's market, there are few competitors. "It's not necessary to do all these complicated things."

But after all, this is Decathlon's weakness. If other competitors are working hard in this area under the same circumstances, they will probably have the advantage.

In this respect, what Decathlon pays more attention to is the challenge of talent reserve in the future.

People are the core of Decathlon.

We need to identify and cultivate more talents with Decathlon values.

This is not easy. "

It is understood that at present, Decathlon is actively recruiting, from 2015, it will move the traditional campus recruitment to Decathlon stores, candidates will participate in and experience the opening day and team activities. I hope that in this way, "let the young people understand Decathlon company quickly and directly, we are also pleased to see more and more new faces joining the Decathlon China blueprint".

It seems that whether it is external competitors or internal weakness, Decathlon still needs to make some changes if it wants to continue to fire in China.