How Will Decathlon Keep The Fruits Of Victory In The Chinese Battlefield?

Behind the explosive growth in China, there are also many hidden dangers.

The advantages of the product itself and the mature mode of the online shopping malls can indeed make Decathlon hold in China

Developing capital.

But in the North Asian plant mode and human resources, the advantage of cheap labor in China is dissipating.

Data show that in 2015, the size of China's labor force dropped from 937 million in 2012 to 911 million, while Cai Fang, vice president of the Chinese Academy of Social Sciences, also mentioned that the growth rate of labor productivity is lower than that of migrant workers in terms of wage growth, diminishing returns on capital and negative growth in labor migration.

In this way, when the demographic dividend is disappearing, Decathlon is likely to assume higher labor costs than it is now. The sharp increase in human cost is likely to have an impact on Decathlon's small and profitable business strategy.

2014, the United States

SportsAuthority, ranked fourth in the annual income chain, declared bankruptcy at 470 stores and 14500 full-time employees. Although the root cause of its bankruptcy lies in the impact of the electricity supplier, the increasing cost of human resources is also a major reason for the breakup of the company's capital chain.

It is understood that on the eve of SportsAuthority's bankruptcy, a large number of thousands of layoffs have been laid off, but it is still unable to restore the decline. For Decathlon, if it is out of the comfort zone with low labor costs, will its expansion in China be so smooth?

On the other hand, Decathlon, an integrated front and back company, has never seen a rival in China before, which partly ignores the cultivation of loyal users in China.

In Europe, Decathlon's quality shopping experience comes from its meticulous service for its salesmen. However, through the understanding of the ecosystem, this brand culture has not been copied in original form in China.

If other competitors enter the one-stop sporting goods market in China, there will be no user sticky Decathlon.

At present, Russia's sports brand Sportsmaster and Switzerland's Intersport have also entered the Chinese market one after another.