How Can Decathlon Do No Less Than The Cost Performance Of Chinese Enterprises?

Speaking of Decathlon, many people's first impression is good quality and low price.

In Decathlon, dozens of dollars can buy a good sportswear.

A lot of sports fans will also recommend it.

Sports equipment.

The 40 year old French enterprise is described by the industry as IKEA in the sports industry.

Today, Decathlon has more than 200 stores in China, and it is no less than the cost performance of Chinese enterprises.

It was not early for Decathlon to enter China. In 1992, it entered China as a producer. In 1998, it opened a factory store in Xhenzhuang industrial district, Minhang District, Shanghai, and laid the first piece of retail trial.

In 2003, Decathlon officially announced its entry into the Chinese market and is still advancing steadily.

In many people's impression, overseas brands are large brands and high prices.

But Decathlon did the opposite.

Walking into Decathlon's flagship store, the biggest consumer's feeling is cheap.

Decathlon is not only far cheaper than other overseas markets.

Compared with local brands, it is also quite competitive.

Low price has become Decathlon's survival strategy.

To ensure price competitiveness, Decathlon even limits the gross margin of products.

If the gross margin of a product looks good, management will try to lower the price.

For such a violation of intuition, Decathlon responsible person told reporters, "because Decathlon is concerned about not short-term interests, but to provide users with truly inexpensive, competitive products."

As a big manufacturing country, China is not short of low price products, but how can Decathlon do it without the products of high quality and low price?

To ensure quality, Decathlon did not choose OEM like many multinational brands, most of its products were completed by its own production chain.

Decathlon has reduced the production cost by scale effect through the implementation of global procurement.

In addition to retail business, Decathlon also has R & D, production, logistics, brand and other business in China. China has become Decathlon's first overseas market with the whole industry chain layout.

Time is an important tool for Decathlon, and it is a sharp weapon to reduce the cost and increase the quality.

In order to develop in the Chinese market for a long time, Decathlon has chosen to buy land for self built projects, followed by leasing projects.

When signing a lease contract, Decathlon will sign a lease of 20 years with the owner, which is the longest period stipulated by the state.

Although Decathlon's business model is very heavy, because it has enough time to dilute the cost, it can ensure low quality while ensuring quality.

Decathlon said, "when deciding to enter a city, Decathlon is ready to grow with it."

Precise positioning also saves a lot of money for Decathlon.

Decathlon told reporters, and Adi,

Even Anta and Lining are different in positioning. Decathlon is positioning "mass sports" rather than competitive sports.

Therefore, Decathlon's target audience is the public, so that ordinary consumers can get more sports experience at a low price, so that sports can be readily accessible.

Based on this idea, the reporter interviewed in Decathlon store found that Decathlon's product classification is very meticulous, so that it is refreshing.

Take running shoes as an example. Decathlon's label will tell consumers clearly that this running shoe is suitable for the runner who runs in the number of kilometers per week.

For those who run in the gym, Decathlon also has specialized treadmill running shoes.

According to the world clothing and shoe net, Decathlon will carry more than 3500 new products every year, covering 80 sports events. In the next 5 years, Decathlon will provide 100 sports items in China.

For other sports brands, advertising is also a big expense, including celebrity athletes endorsement, advertising and sponsorship.

But for Decathlon, advertising spending is almost negligible.

Even outside the flagship store, there are only a few ads.

What Decathlon values is the use of registered permanent residence tablets and the resulting repeated purchases and chain dissemination.

So, in the bill paid by consumers to Decathlon, almost no money was taken away by advertisers.

In this regard, Decathlon gives further explanation: the cost will be used in product research and development and reduce product prices, so that users can actually benefit.

In order to reduce the internal operation cost, Decathlon adopts a flat management structure. In France, which is famous for its bureaucracy, Decathlon is very French.

According to the world clothing shoes and hats net, every employee of Decathlon has great autonomy.

For example, department managers of shopping malls are not only responsible for the sales performance of sports products, but also can make localization adjustment according to local market and user feedback for product line selection, product display and order.

In addition, department managers can recruit and organize teams according to their own team development plan.

Decathlon's human resources department will also provide advice and support for employees.

In order to boost morale, Decathlon's top recruitment position is department manager, refusing to "airborne troops".

Even the core management team will go to the mall every year to work with the front-line staff to listen to the needs of users.

At the entrance of Decathlon China headquarters, a row of work clothes was hung.

Decathlon requires employees to enter the shopping area and must wear a uniform.

This row of work clothes is convenient for everyone to work in the mall.

Thanks to these details, Decathlon's business in China has been steadily advancing, enjoying the dividends that China has made to move to a big sports country.

With the popularity of running in China in recent years, the sales of Decathlon's running equipment is quite gratifying, and the sales of water based equipment gradually increase, and the sales of ice and snow sports equipment continue to improve in winter.

For Decathlon, although it has been cultivated in China for 13 years, there are still more sports dividends to be released in China. The road ahead is still long.

More interesting reports, please pay attention to the world clothing shoes and hats net.