UA Is Ambitious In China To Replace Lining With CBA Sponsorship.

Although the prospect of commercialization of CBA is uncertain, it does not hamper brand operators.

Enthusiasm.

According to the news, Under Armour has quoted CBA, hoping to become the next main sponsor of CBA, sponsoring all sports equipment on CBA field and off court, offering a price of RMB 800 million yuan a year.

The news was subsequently verified to Under Armour, but did not receive any reply from Under Armour.

CBA's previous sponsors were

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In 2012, Lining obtained the qualification of the main sponsor by Ying Fang sports, acting for CBA business rights, at a price of 20 billion yuan in 5 years.

At that time, the price was also considered to be too high, because the price of Anta sponsored CBA before Lining was 20 million per year, while the Nike bid for the same time with Lining was $8000 per year.

At that time, Lining was willing to spend a lot of money on sponsorship of CBA, mainly in order to solve his own problems.

According to Lining's annual report, Lining's operating income in 2011 was 8 billion 929 million yuan, a decrease of nearly 5 billion yuan over the previous year, and its net profit was only 386 million yuan, less than half of PEAK sports net profit of 780 million yuan.

In addition, Lining was also troubled by inventory. In 2011, Lining stock was 1 billion 133 million yuan, an increase of 40.64% over 2010, and the turnover of inventory also increased from 52 days last year to 73 days.

However, sponsoring CBA did not help Lining recover.

Lining continued to lose money between 2012 and 2014.

Although Lining made a successful turnaround in 2015, the two figures of 7 billion and 1400 million net profit were not good enough, not to mention Lining's inventory remained at a high level of 960 million yuan.

Whether Lining will continue to sponsor CBA now seems to be doubtful whether other sports brands such as Nike, Adidas, and Anta will contest the offer for the time being unclear. But the offer of 8 billion billion years to replace Lining's Under Armour seems to be aggressive.

In 2015, Under Armour earned more than $3 billion 900 million, an increase of nearly 30% compared to 2014 and a net profit growth of more than 10%.

At the beginning of 2015, Under Armour exceeded Adidas to become the second sports brand in the US market share.

20 years ago, when Under Armour was founded, its main product was quick drying.

Planck, the founder, decided to reform the cotton underwear that was comfortable, but sweating badly.

His final choice of polyester material can be breathable, fast drying, assisting muscle strength, and can be compressed to a very small volume, easy to carry.

This fast drying garment soon became popular in the NFL campaign and became the most important product of Under Armour.

Even in 2015, 20 years later, Under Armour had more than 70% of its revenue from its clothing category.

In 2006, Under Armour officially began to enter the field of sports shoes.

It wasn't until 2009 that Under Armour began to sell basketball shoes in the US market on the basis of a number of NBA star resources.

Many people blame the success of Under Armour on basketball shoes on Stephen Currie.

In the 2013 year of the year, Under Armour signed up to become a sponsor of Currie, and now curry has become the hottest star of NBA.

After the success of the US market, Under Armour can not wait to turn its attention to the international market, of which China is the top priority.

From 2011 to the 2015 year of the year, Under Armour opened 78 stores in China, but this speed obviously can not satisfy Under Armour.

After announces the 2015 quarter's two quarter earnings report, founder Planck said: "from September this year, in the next 6 weeks, we will open 30 stores in China."

In addition, the Under Armour's most important basketball shoe series, the first generation of the two generation of boots, was also selected in China, to some extent, revealing their determination to develop the Greater China market.

If Under Armour really raised a $8 billion sponsorship offer to CBA, the company might try to replicate its way of growth in the US in China by sponsoring competition to enhance brand awareness and attract more consumers.

However, China's Basketball League is not mature enough to protect the rights and interests of sponsors.

In November, it was less than a month ago when tiger was signed to become a CBA time sponsor. It announced that CBA had decided to stop sponsoring CBA and prosecute surplus China because of its breach of contract.

This is another challenge for Under Armour, apart from potential competitors such as Lining and Nike.