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    Can Sports Brands Seize The Opportunity Of Rio Olympic Games?

    2016/5/19 10:36:00 75

    ProductsSports BrandLining

    Marketing,

    product

    Technology, channel and globalization strategy.

    domestic

    Sports brand

    I haven't been so excited for a long time.

    According to the sales results of several major sports brands released in 2015 this year, they have welcomed the highest growth in recent years, and some have achieved the first turnaround since 2012.

    For example, Lining.

      

    Lining

    In the 2015 fiscal year, the total revenue reached 7 billion 89 million yuan, an increase of 17% over the same period, operating profit of more than 150 million yuan, and net profit of 14 million yuan, while in the previous year, it also lost 643 million yuan and 781 million yuan respectively.

    Its competitors also achieved good results in 2015.

    The first place to occupy the domestic sports brand is Anta, which has a sales of 11 billion 126 million yuan in 2015. It is the only domestic sports brand with a year's sales of over 100 billion yuan.

    XTEP's annual revenue was 5 billion 296 million yuan, an increase of 10.8% over the same period last year.

    Market share followed by 331 degrees and PEAK also achieved a profit of 518 million yuan and 390 million yuan.

    However, the most powerful competitors in the market are Nike and Adidas.

    They occupy the first and second market share respectively.

    In 2015, Adidas's total revenue in Greater China was more than 2 billion euros (14 billion 100 million yuan), two times that of 2010.

    In the same year, the revenue of Nike brand in China reached 3 billion 67 million US dollars, an increase of 18% over the same period.

    A recent article pointed out that although Nike's current market value is more than 10 times the sum of the five major domestic listed sports brands, the latter has great room for growth.

    The author Nisha Gopalan added that Nike and Adidas should be vigilant.

    The growth of domestic sports brand over the past year is related to the rise of Chinese consumers' health, awareness of sports and the popularity of sports style in fashion trend.

    This is essentially an industry level positive.

    These companies have something in common.

    For example, they are increasingly willing to spend money on marketing: Anta signed soccer player Zheng Zhi for 7 million yuan, and signed Yang Xu at 31st degree.

    Another common feature is that after the 2008 Beijing Olympic Games, the inventory of these companies has been released in the past few years after the pressure of high inventory and low turnover.

    Of course, each brand has its own characteristics.

    As we have written, XTEP has improved its professional performance in the past year, such as the development of technology dominated products such as "soft cushion" and "ice technology".

    Over the past year, its R & D costs rose 12.8% to 121 million yuan, or 2.3% of total revenue in the year, and its partners also included Dongli, Japan's research and development technology fabrics.

    Compared with the strategy of pushing Anta shoes, the company has launched an attempt in many fields.

    In the past year, it has completed the acquisition of outdoor leisure and mountaineering brand Sprandi, and announced that it will set up a joint venture with Tokyo Descente company to engage in the product design, sales and distribution business of Descente brand in China (the company's main product is skiing products).

    Some companies are also using electricity providers to improve their influence.

    Take Lining as an example, in 2015, the sales volume of its e-commerce channels increased from 4% in 2014 to 9%.

    Brands like 360 degrees and PEAK are also seeking more exposure in international competitions by sponsoring sports delegations and athletes.

    Currently, there are hundreds of stores in the United States and Brazil.

    2016 is a very important year for these brands, the Rio Olympic Games are less than 80 days away from today.

    Whether these brands can seize this opportunity to the greatest extent may become the most concerned aspect in the annual report next year.

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