China'S Sports Market Is "Honey". Who Is The Most Nervous In China'S Four Sports Competitions?

With the first half year performance reports of sportswear companies released at home and abroad, international sports giant Adidas Nike, Cage and Kappa, Anta Lining and XTEP are moving in China.

The performance of the market is different, sports shoes and clothing consumption.

The continued recovery will attract more attention.

International brand scramble for Chinese market

In the first half of the year, international sports giant Adidas Nike's revenue net profit was better: according to the euro, Adidas's revenue reached 10 billion 809 million euros, an increase of 3% compared with the same period last year, gross profit margin increased 2.2 percentage points to 52.3%, operating profit margin increased 1.2 percentage points to 11.3%, net income increased 20% to 418 million euros, as of May 31, 2018, in the fourth quarter of last fiscal year, Nike Group sales increased to 9 billion 790 million dollars, an increase of 13% over the same period, and net profit reached US $18, an increase over the same period last year.

It can be seen that Adidas still occupies the position of the international sports giant.

In the second quarter of 2018, its sales in Greater China increased by 27%. It is worth noting that greater China has recorded more than 20% sales growth for ten consecutive quarters.

Nike's performance is also commendable, with revenue higher than analysts' expectations, mainly from the international market.

And the recovery of the North American market.

In 2016, Nike handed over the best-selling sports shoes in America, which was taken away by Adidas.

In recent years, coconut shoes, joint name, celebrity endorsement, environmental technology upgrading and so on, from shoe fabric design to color matching scheme, Adidas seems to know more about innovation and consumers than Nike, and Adidas has a quicker response to complex consumer environment.

Recently, fake Nike shoes have begun to consume in China.

"Rampant", a wave was found again.

There is demand for the market, so we can see the attraction of international sports shoes such as ADI Nike to Chinese consumers, even high imitation goods.

In addition to the frequent appearance of sports shoes, the price increase of sports shoes is in China.

The market still exists. In order to crack down on shoe dealers, Adidas's official website will introduce a fairer way to sell some of its high popularity products.

However, Adidas is good at using hunger marketing to stimulate consumption desire and pursue its brand's inertia.

Consumers beat the coconut shoes in the mall, and Adidas beat Nike.

In addition to ADI and Nike, American sports leisure brand Skech is in China.

The performance of the service market is good.

According to China

Net understands that in the three months ended June 30th, Skech's revenue rose 10.61% to $1 billion 134 million over the same period, but net profit fell 23.94% to $45 million 284 thousand.

Cage's sales of wholesale channels in the US dropped by 7% compared to the same period last year, but the Chinese market sold 5 million 600 thousand pairs of shoes, a record high.

It is worth noting that in the second quarter, Skech's expenditure in the Chinese market increased by US $29 million 400 thousand, which was used for the layout of China's market expansion and for the promotion of "double 11" for China's unique national chop Festival.

Skech has been in the Chinese market for 10 years, and sales are rising at an alarming rate: from 74 million in 2008 to 10 billion 430 million in 2017.

Skech said that sales in 2018 were expected to break the 15 billion mark, but its net profit in the second quarter dropped by 20%. In the second half of the year, the challenges faced by Cage are still small.

Kappa, which has entered the Chinese market for more than 15 years, has not been able to do so. Cage has been selling smoothly, not only declining performance, but also reducing the number of stores.

According to China

Network understands, in the first half of this year, Kappa parent company China's trend revenue was 772 million yuan, an increase of 14.4% over the same period, the profit attributable to shareholders was 481 million yuan, a decrease of 10.3% compared with the same period last year, and gross profit was 451 million yuan, an increase of 9.2% compared with the same period last year, with a gross margin of 58.4%, a decrease of 2.8 percentage points compared with the same period last year.

China's main business Kappa in the first half of the year sales volume was 569 million yuan, an increase of 10.7% over the previous year, sales of clothing reached 426 million yuan, an increase of 17.7%, and footwear sales decreased by 6.4% to 132 million yuan.

As of the end of June 2018, the number of Kappa brands including children's clothing decreased by 48, while the total number of stores was less than 2000, only 1439.

Without shutting down these 48 inefficient shops, Kappa's performance will be further dragged down.

Domestic sports four strong: bosom friend also knows the other side can keep on fighting.

In the first half of the year, Anta will be behind Li Ningshuai, Anta's revenue is broken by billions, net profit is nearly 2 billion, and Lining's revenue is less than 5 billion. Net profit is far less than Anta's.

Anta: revenue 10 billion 554 million yuan, an increase of 44.1% over the same period, net profit of 1 billion 940 million yuan, an increase of 34% over the same period, and gross margin increased to 54.3%.

Lining: revenue 4 billion 713 million yuan, an increase of 17.9% over the same period, net profit of 269 million yuan, an increase of 42% over the same period, and gross margin increased to 48.7%.

The gross profit margin of net profit margin was stronger than that of Lining, and Anta said that it was mainly caused by the strong growth of clothing sales. Anta

Among them, the acquisition of FILA is the main force of its revenue growth, we can see that Anta's multi brand strategy has obvious effect.

Zheng Jie, executive director and chief executive of Anta sports, said: "next, the company will continue to buy in the subdivision area, focusing mainly on the professional sports brand matching Anta group positioning, or the brand with strong sports attributes and complementary with Anta."

The first half of the year's performance strengthened Anta's confidence in 2018's annual performance.

Zheng Jie said Anta's annual revenue in 2018 is expected to exceed 20 billion yuan, the best achievement in landing in the capital market in 11 years.

In the first half of this year, Lining's revenue growth was gratifying, and it had a great relationship with the young consumers who landed on the international fashion stage. The income of footwear, clothing and accessories and accessories reached 2 billion 190 million, 2 billion 300 million and 222 million yuan respectively, up 8.6%, 30.7% and 1.2% respectively.

In the first half of this year, Lining changed the image of local flavor, and won the good feedback of China's consumer market with fashion and cool. But the overseas market was not cultivated.

It is understood that its international market revenue is about 73 million 640 thousand yuan, down 19.5% compared with the same period last year.

It can be seen that not every local shoe and clothing enterprise can get good results quickly.

Lining, who entered the international market in 2000, is going to be a global sports brand with opportunities and challenges.

Perhaps for Lining, to surpass himself is more important than to surpass Anta. After all, we can see that we can go further.

For consumption upgrading and consumption demand diversification, Lining said that it will focus on building and consolidating Lining experience value including sports experience, product experience and shopping experience, and improving the online and offline sales efficiency through digitalization strategy, so as to enhance brand competitiveness and performance level.

In the first half of the year, Anta and Lining used different marketing strategies to compete in the Chinese market for the domestic sports giants. While XTEP and 331 degrees had a good sales channel, an adult footwear apparel made the largest contribution.

XTEP: revenue grew 18% to 2 billion 729 million yuan, net profit increased 21% to 375 million yuan, and gross profit margin fell to 43.7%, down 0.2 percentage points.

360 degrees: revenue grew 7.8% to 3 billion 17 million yuan, net profit rose 5.3% to 335 million yuan, gross profit margin decreased by 0.7 percentage points to 41.6%.

During the period, the proportion of XTEP's electricity channel revenue accounted for more than 20% of the total revenue.

It is worth mentioning that in order to implement the professional sports strategy, XTEP has become the most popular local sports brand sponsoring marathon events, sponsoring 14 running events.

In the first half of the year, the net profit of 331% increased by 5.3%, and the adult footwear apparel contributed the most. Children's clothing accounted for 12.1% of the total revenue: 13 million 940 thousand of the adult footwear products were sold, and 6 million 538 thousand of the children's clothing products were sold.

Large sales volume is not related to the number of stores.

As of June 30, 2018, a total of 5604 core brand stores were set up, about 80% of which were independent street shops, mainly distributed in cities with three or less cities in China.

Although XTEP's 31st degree revenue is no match for Anta Lining, its net profit still exceeds that of Lining.

Last year, the net profit of Anta, Lining, XTEP and 331 degrees were 1 billion 450 million, 189 million, 310 million and 318 million respectively.

It seems that although the scale of XTEP's revenue is less than that of Lining, its profitability is higher than a small one, but the net profit growth rate of the 4 companies is not fast.

It is understood that the more obvious pformation effect XTEP will seek cooperation with the core XTEP brand complementary brand, to increase the penetration of Chinese sports market by multi brand strategy, and increase the intensity of the 31st degree plan to import high-end products from overseas business to the domestic market for sale, and compete for the new season's local market.

Conclusion

It is understood that China's sports shoes and clothing market will reach 246 billion 700 million yuan in 2020, with an average annual compound growth rate of 8.37%. But with the diversification and individuation of consumer demand, the higher the degree of subdivision of sports products, the more likely it will take more market share to become stronger.

There are international brands such as ADI Nike and so on. The competition of the four major sports clothing enterprises in China is constantly upgrading. The Chinese sports market will be widely distributed in the future. Anta Lining and XTEP 360 will have the psychological preparation and core competitiveness to fight the protracted war if they want to keep their current status or catch up with their rivals.

(author: Zhong Meng)