The Sports Industry Is Surging, And Who Will Be Able To Be Independent?

With the sports consumption becoming one of the new consumption trends, the sports industry is beginning to surge.

Authoritative reports indicate that sports products and sports products are the biggest sports industry.

Aspect, China

Footwear, health, leisure and education industries will grow by 26% to 42% in the next five years.

According to the world clothing shoes and hat net, from the recent mid and recent reports released by sports brands at home and abroad, we can see that the competition around "Sports" is becoming more and more intense.

The Greater China region grew by 27.7% compared to the same period last year, constantly eroding the market share of the original industry boss Nike. Lining, a domestic sports brand, also came to the fast track and bet on the children's wear market.

Nike, whose image is damaged, has lost heavily in China, and a new round of qualifying begins.

Nike is catching up

The famous Chinese financial and business magazine, the economist, released this year's special report on China's sports industry, "China's opening competition - the rising China sports fitness industry" (hereinafter referred to as the "report").

According to the report analysis, in 2016, the size of China's fitness market was close to 1 trillion and 500 billion yuan (US $216 billion 800 million), of which sports products and equipment accounted for nearly 70% of the total consumption.

The report analyzes the overall situation of China's sports industry, predicts that there are great potential in the winter sports such as fitness, skiing and other traditional sports such as fitness and skiing, including the square dance, and sports products and brands that account for the largest proportion in the sports industry. The report thinks that China's clothing, footwear, health care, leisure and education industries will grow by 26% to 42% in the next five years.

As a result, the Chinese market is regarded as an emerging market by international sports brands.

Originally Nike occupied the top position in China's sports market, but from Adidas's performance this year, Adidas's position on Nike is pressing step by step.

According to Adidas's second quarter earnings report released in 2017, the report shows that Adidas's net sales increased by 20% to 5 billion 38 million euros compared with the same period last year, and net profit rose 16% to 347 million euros compared with the same period.

From the perspective of regional development, sales in all other regions except Russia have reached two digit growth, of which North America has increased by 25.8% compared with the same period last year, and the growth rate in the Greater China region has increased to 27.7%.

And the original industry old Nike is no longer the scenery.

Nike recently released its 2017 Quarter Fiscal Year fourth quarter earnings report, its sales grew by 5% over the same period last year. According to the region, the sales of big China increased by 11% compared with the previous year. Nike's revenue growth has slowed down for 6 consecutive quarters. Under the strong pursuit of competitors, the position of Nike's boss is at stake.

At present, the growth rate of Nike orders has dropped for three consecutive quarters.

The order data in the first quarter of 2017 showed that global orders from September 2017 to January 2018 were 12 billion 300 million US dollars, an increase of 7% over the same period last year, but the growth rate was much lower than that of 17% in the same period last year.

In order to save the decline, Nike launched the "Consumer Direct Offense" plan, according to the plan, Nike will cut 2% of the world's employees and 1/4 of shoes.

At present, Nike has more than seventy thousand employees around the world, and layoffs of 2% means that Nike has lost at least 1400 employees around the world.

According to the analysis of the industry, Adidas has been encroaching on Nike's market in the past year, and it is better at catching the fashion trend than Nike.

On the product, Adidas's Boost series is in short supply. In marketing, unlike Nike, Adidas spokesmen use a lot of stars instead of athletes.

In China, Adidas's choice of spokesperson includes Wu Yifan, Fan Bingbing and so on. Under the star effect, these fans can be pformed into potential consumers.

Domestic sports brands promote multiple brands

The report published by the economist points out that many industries in China are undergoing a "high-end" pformation. The relevant indicators also indicate that consumers will pay more attention to the outstanding product differentiation and functionality in the domestic sports apparel market.

The domestic market brand of foreign investment is expanding, creating a healthy competitive environment, not only will benefit domestic consumers, but also promote the development and progress of domestic brands.

In 2016, when the domestic sports brand experienced all the failures, this year's performance was amazing.

Lining sports recently released mid-term results as of June 30, 2017.

During the period, the group's revenue increased by 11% during the same period, reaching 3 billion 996 million yuan, while operating profit increased 32% over the same period, to 202 million yuan. Lining said at a press conference that Lining's pformation task was close to 40%.

In fact, the leader of domestic sports brands is Anta, whose revenue has been broken by billions.

According to the latest operation data released by Anta, the order volume of Anta brand in the fourth quarter of 2017 is higher than that of the previous year, which is the best result for the last 4 quarters.

Unlike the multi brand strategy pursued by Anta, the main brand "Lining" still occupies 99.2% of the total revenue of the Lining group, and has become the hero of the pulling performance with the growth of 12%.

By contrast, FILA based multi brands account for more than 20% of Anta's revenue.

At present, Lining is trying to revitalize the multi brand plan, and put New York's famous female dancer dress brand Danskin in its pocket, so as to open up the female sports market.

In addition, the children's clothing market has also become the object of Lining's bet. This year, Lining announced the resumption of Lining KIDS authorization, launched its own brand Lining YOUNG, in the first half of 2017, Lining YOUNG has opened about 20 outlets in the 14 provinces of the country.

According to the insiders, the huge industrial chain of sports has ignited the enthusiasm of multi-channel capital. The huge market capacity to be developed has attracted many enterprises to scramble for it. Whether it is Anta, XTEP or Lining, the local sports brand is looking for new points through capital strength. A large distance difference race has been launched among the major sports brands.

And those sports brands with scale, good profit expectations and mature business models will also show more development and imagination in the future.

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