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    Luxury Brands Are Too Popular With Western Sports Brands.

    2016/6/21 17:09:00 81

    Luxury BrandsSports BrandsConsumers

    Recently, foreign media said

    Chinese consumers

    They are increasingly abandoning luxury brands and buying western sports brands.

    For Beijing resident Alex Ho, the cost of going to the mall can be more than $3000.

    He works in the financial industry at the age of 29. Although he does not shop regularly, he said in an interview, "when I shop, I will buy a lot."

    His latest shopping results include several pairs of "Adidas" sneakers bought at a discount store.

    In addition, he also bought the "Andrea" brand shorts and sportswear.

    He said, "I would buy a lot of luxury brands before, but since last year, I have bought more sports brands because they are more comfortable and fashionable."

    As is expected, Chinese consumers who want to show their individuality in shopping are increasingly turning to buying western sports brands.

    The anti-corruption campaign launched by the Communist Party of China has greatly affected the sales of luxury brands.

    However, sales of sports brands remain strong.

    Nike's sales in the Greater China region remain high, with orders increasing between 27% and 35% from last September to April this year.

    Adidas's Greater China sales last year amounted to 2 billion 470 million euros (1 euros, or 7.41 yuan - net note), accounting for about 15% of its total global sales.

    Last year, the brand opened more than 500 new businesses in China.

    shop

    The total number of shops in China has increased to more than 9000.

    For many consumers who are puzzled by the political implication of their shopping, these overseas sports brands make them feel "safe".

    The Chinese who are worried about "big trees" are looking to buy goods that look obvious but not very expensive at the same time.

    Nowadays, more and more Chinese are also keen to become healthier.

    According to official media reports, the output value of China's fitness industry reached 127 billion 200 million yuan in 2014, an increase of 84% over 2009.

    The Chinese government is encouraging this trend, hoping to further enhance public interest in sports before the Winter Olympics in Beijing in 2022.

    Gao Jiali, managing director of Adidas Greater China, said: "we see a surge in the number of consumers involved in running and other sports."

    The development level of China's sports industry is still not high.

    According to the report issued by Yu Jianpeng, a ICBC analyst, in January this year, the value added of sports industry accounted for 3% of the gross domestic product (GDP) of the United States. In China, the figure was only 0.7%, about 474 billion yuan.

    The goal of the Chinese government is to achieve the scale of sports industry by more than 3 trillion yuan by 2020.

    In fact, China

    sport industry

    The boom did not benefit some local brands.

    According to a report issued by Fitch Rating firm in June 3rd, competition from Adidas, Nike and other foreign brands is having a negative impact on local brands. The growth rate of orders for these brands has declined from the two digit growth rate of last year to the two digit growth rate at the beginning of 2016.

    As Chinese middle class consumers pay more attention to comfort, they may "place more emphasis on brand and product differentiation, which is precisely the disadvantage of local brands."


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