Breakthroughs: The Sponsorship And Internationalization Of China'S Sports Brand

In August 18th, the Jakarta Asian Games officially opened in 2018.

The brand publicity has spread all over Jakarta, and many athletes who have signed a contract with 361 degrees have achieved good results. Recently, 361 degrees have brushed a sense of existence inside and outside the stadium and on the Internet.

As a senior partner of Jakarta Asian Games.

Since 2008, it has been committed to international business with the aid of international sports sponsors.

Ding Wu, President of the 361 degree group, revealed that at present, there are more than 3000 overseas sales outlets, and it is expected to expand to 4000 in the year to maintain the expansion speed of 500-600 sales outlets each year.

After sponsoring international events, after all, we must pay high price of real gold and silver. According to the rough estimate of reporters, only three Asian Games sponsorship, 361 degrees will cost hundreds of millions of Yuan sponsorship, and the company's revenue and profit growth rate in recent ten years is not attractive in the industry.

Is this an ideal investment? How to balance the ratio of input to income, or put forward the realistic problem before the two generation of head of Ding Wu.

In an exclusive interview with the twenty-first Century economic report, Ding Wu said that despite the pressure of the market, he firmly wanted to enhance the popularity and reputation of the brand through internationalization, and also considered the strategic deployment of the acquisition of high-end brands into the company's future. "It will not exclude the acquisition of brands, but it must be related to the sports industry, and both domestic and foreign enterprises are possible."

Sponsorship business

Since the evening of August 14th, he arrived at the Indonesian capital of Jakarta.

In August 15th, he held a contract signing ceremony with Indonesia sun department store in Jakarta. The physical stores and online shopping mall of sun department store will be 361 degrees.

Exclusive product distribution channels within the scope.

As the largest department store in Indonesia, sun department store has 155 stores and more than 40 thousand employees in 74 cities in Indonesia.

Ding Wu hopes to take this opportunity to root 361 degrees in Indonesia and even expand to Southeast Asia and South Asia.

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According to 361 degree understanding, at present, 361 degree has already had sales network in Singapore, Vietnam and Nepal, but the overall sales layout is still smaller than that in Europe and America.

Therefore, Ding Wu regards the Jakarta Asian Games as a huge marketing stage and actively contacts with potential business partners from all over the world.

The identity of the senior partner of the Jakarta Asian Games has provided Ding Wu with the convenience of Indonesian administration and sports venues.

On August 16th, he participated in the torch relay of the Asian Games in the urban area of Jakarta as the torch bearer of the Asian Games. On the 17 day, he met with Prince Ahmad, chairman of the Asian Olympic Games. According to the disclosure, the two sides discussed the possibility of continuing sponsorship for the next Hangzhou Asian Games.

In its 2018 first half of its earnings report, 361 degrees indicated that it had supported the large-scale international sports events for many years. It successively supported the 2010 Asian Games in Guangzhou, the Shenzhen World University Games in 2011, the Nanjing Youth Olympic Games in 2014, the Asian Games in 2014, and so on. In 2016, it became the first Chinese sports brand supporting the Olympic Games, and became the official partner of the Olympic Games and Paralympic Games in Rio.

This year's eighteenth Asian Games in Jakarta, 361 degrees, as the official three consecutive official partners, continue to help support the Asian Games.

In the view of Ding Wu, supporting large professional sports events is an important part of the company's growth process. With the help of international sports events, it can better pave the way for overseas layout of 361 degrees.

Prior to the cooperation between Jakarta Asian Games and Indonesian sun department store, 361 degrees, a sponsor of Brazil Rio Olympic Games, also captured the local network layout and sales opportunities in Brazil.

In 2016 alone, the layout of 1200 stores was completed in 361 degrees in Brazil, and overseas sales increased by more than 80.6% in 2016.

Compared with Anta, Lining and other domestic counterparts, the 361 degree sponsorship idea seems to be more international. Its sponsorship events are more intercontinental and international events, hoping to enhance its brand awareness and reputation.

At present, 361 degree products have been covered in more than 20 countries and regions, including Britain, Germany, France, Austria and Switzerland.

As of 2017, the 361 degree group had 1241, 1030, 378 and 40 sales outlets in Brazil, the United States, Europe and Taiwan, respectively.

According to Ding Wu, so far, there are more than 3000 sales outlets overseas, and 4000 in the year.

On the other side of the coin, the sponsorship of large international events costs a lot, and 361 degrees costs a lot.

Although 361 degree has not directly disclosed the relevant data, according to the advertising marketing expenses disclosed in the past years' earnings report, its marketing cost has increased year by year, and the advertising expenditures of 361 - 2017-2015 years are 166 million, 149 million, 121 million, respectively, accounting for 9.8%, 11.4%, 12.8% of the percentage of earnings.

Such a huge expenditure, 361 degrees can bear?

Of the four well-known domestic sporting goods brands, 361 degrees are not dominant in brand history and market share.

Data show that as of the end of 2017, 361 degrees owned 5808 core stores, while Anta had reached 9467, Adidas and Nike had more than 22000 stores in China by the end of 2016.

In fact, the asset size of 361 degree is not weak.

According to the 2017 report, the total assets of 361 degrees were 11 billion 934 million, ranking second in the domestic sporting goods brand, the second only to Anta 20 billion 642 million, which was 2 billion 496 million yuan more than XTEP ranked third.

2018 semi annual report shows that the first half of 361 income increased 7.8% to 3 billion 17 million.

Anta sports rose 44.1% in the first half of this year to 10 billion 554 million, while Lining increased 17.9% to 4 billion 713 million.

In the past 3 years, the 361 - month interim revenue increased by 15.72%, 9.49% and 7.8%, respectively.

361 degree competition is not just for local brands.

In the international sports brand, Nike's total revenue in fiscal 2018 (June 2017 to May 2018) reached US $36 billion 397 million (about 249 billion 960 million yuan), an increase of about 6% over the same period last year.

The total revenue in the Greater China region amounted to US $5 billion 134 million (about 35 billion 258 million yuan), increasing by 18% over the same period on the basis of exchange rate unchanged.

In the first half of this year, the business growth of Adidas and Puma in China also showed strong growth, and achieved double growth.

Among them, Adidas Greater China sales increased by 27%, and has achieved more than 20% sales growth for ten consecutive quarters.

According to the euro international report, China's sporting goods sales increased 12% to RMB 212 billion yuan in 2017.

Nike and Adidas, the two sports giants, occupy more than 1/3 market share.

According to the relevant data in 2017, Anta's market share is about 7.87%, about 4.2% of Lining, and 361 of 4%.

According to the current growth momentum, the market share of domestic brands is likely to be further compressed.

Li Jiahao, Galaxy International Securities analyst, said, "although the overall local sports brand is losing share, the leading local brands still have the ability to resist and counter attack".

International breakout

Facing the challenge of Ding Wu is a great challenge. How should we go through this whirlpool?

In order to reverse the competitive situation, the 361 degree is another way to make efforts in children's wear and internationalization.

Among them, children's clothing has achieved remarkable results. 2018 semi annual report shows that children's wear rate of 361 degrees is 18.89%.

Over the past three years, the growth of children's clothing business income has been 16.74%, 12.87% and 18.89% respectively, both of which have achieved double-digit growth.

In addition,

Business accounted for 361 degrees of turnover also showed an expansion trend, nearly three years were 10.7%, 11% and 12.1% respectively.

In May 23rd, the children's clothing brand of 361 degrees was signed with the global shadow painting (Shanghai) trade agreement, and jointly launched a series of children's wear products with the theme of DreamWorks Animation and Jurassic world film series.

361 degree children's clothing brand and business is expected to become a new force for the growth of the company's business.

The electricity competition strategy is another breakthrough that it hopes.

Ding Wu revealed that from the start of the competition, the trend and fashion will be brought into the sports brand to increase the audience.

It is reported that since the QG Happy team was brought together, the first official sale of 361 x QG Happy official T-shirt in the first half of April this year was 361 degrees, which was widely touted on the launch day, and it was sold out in just three hours.

361 degree also announced in June 2018 the second step to enter the competition, forming the "Asian Games, electric competition, 361 degree" iron triangle, 361 degrees hope to support young people's favorite sports new sports events, strive to attract more young consumers to pay attention to the Jakarta Asian Games, while attracting fans of Asian games and electric games to pay attention to 361 degree brand.

In view of the current multiple predicament, Ding Wu said in an interview with the twenty-first Century economic report that "361 degree" will encounter competition in the case of multi brands, will actively seek breakthroughs in enterprises, and firmly choose internationalization as an enterprise strategy.

Internationalization is a strategic thinking that has been deliberately separated from domestic counterparts since the 361 degree listing. Therefore, Ding Wu has even deliberately dug up the legend of Taiwan footwear, Lin Ping Huang, to set up a 361 degree overseas business department to expand overseas by 361 degrees.

According to Lin Binghuang, the design and sales of overseas products at 361 degrees are completed overseas, and the quality and price of their products are comparable to those of other international brands.

The 361 degree Sensation shoes beat thousands of competitors, and were chosen as the annual recommended product of the US runner magazine running world.

361 degrees also independently developed a series of high-tech materials and related technologies, such as SAC-AIR, NFO, QU! KFOAM and so on, and related technologies have gained 273 patents.

Internationalization of 361 degrees is not without controversy.

Before that, Lining and other domestic sports brands had gone through a new round of internationalization. In 2009, Lining flagship store opened in Singapore and opened the first retail store in Portland, Nike, in 2010.

But with the change of the domestic market, Lining was unable to focus on its international development in order to focus on the domestic market, and then gradually withdrew from the international market.

Therefore, before 361 degrees, no domestic sports brand really gained the success of the international market.

It is reported that although the layout of international business has been carried out for four years and achieved double-digit growth, it has not been able to stand alone or even make a profit.

In 2017, the overseas business turnover of 331 degrees was 89 million, an increase of 10.7% over the same period, but only 1.73% of total revenue.

Ding Wu told the twenty-first Century economic news reporter that the development of overseas markets still needs time at 361 degree.

"According to strategic judgment, 2019 will probably achieve a balance, and 2020 will begin to generate profits".

"Brand takes time to accumulate, and good products need time to verify."

Lin Binghuang also said that the 361 degree international brand will be built step by step with the spirit of craftsmen.

Ding Wu also considered the acquisition of high-end brands into the company's future strategic plan.

"The quality of life of Chinese consumers is gradually improving. In the future, they may consider acquiring some high-end products, which need to collide, and each enterprise will take different routes."

Ding Wu said, "do not rule out the acquisition of brand, but must be related to sports industry, domestic and foreign enterprises are possible."