Bet On The Chinese Market Aiming At Fitness Field, Can Reebok Play A "Turning Around"?

Reebok recently launched its first fashion show in Shanghai this autumn and winter.

It is reported that Reebok is ready to target the Chinese market and work hard in the field of fitness.

However, industry experts say that it is not easy for Reebok to fight a "turning around" in China. Lulu lemon and Andemar brands have high brand loyalty in the domestic fitness field, and Reebok wants to take a place in the fitness market and make more efforts in marketing.

Fitness field is the strategic focus

In Shanghai fashion week, Reebok global president Matt O said in an interview that the event is part of Reebok's strategy to expand its Asian market.

Over the past time, Reebok has been investing more in China.

Like most brands, Reebok also thinks China has great potential.

Indeed, Reebok's performance last year also shows that there is room for development in the domestic market.

Adidas's earnings report showed that Reebok's global sales fell 3%.

Among them, sales in the Asia Pacific market increased by 3% to 336 million euros.

From the earnings report, this is the fastest growing region in the world's major markets.

At present, the volume of sales in the Asia Pacific market is second only to Europe and North America. This also means that the Asia Pacific market has become the third largest market of Reebok.

In the 2017 fiscal year, Reebok's global sales increased by 4% over the same period last year, of which the increase in the Greater China region was 25%.

In the first quarter of last year, Reebok achieved two digit sales growth in Greater China.

Out of the importance of the domestic market, last July 8th, Reebok Asia Pacific flagship store in Huaihailu Road, Shanghai officially unveiled.

It is worth noting that this is the first retail store in the world that has really integrated into the gym except Boston headquarters.

It also releases a signal: Reebok will cut in from the fitness field and establish contacts with consumers.

Chai Wei, vice president of Reebok Asia Pacific brand and general manager of Greater China, called the flagship store FitHub 3, and said it would continue to lay out similar stores in the future.

He said that this is a new form for them, which allows consumers to have more connections with products, and also allows "brands" to straddle the "lifestyle".

In fact, since it was acquired by Adidas in 2005, Reebok has experienced ups and downs. Adidas was once included in the list of sales.

But later, Adidas CEO Rothd said in an interview with German magazine Focus in 2017 that Reebok had to make profits in four years.

It is worth mentioning that cha Wei Wen said in an interview that China has already put forward the plan, and the total scale of fitness and leisure industry will reach 3 trillion yuan by 2025.

For Reebok, how to seize the market share in the fitness market is the most important topic at present.

Experts from the China Association for cultural, educational and sporting goods said that Reebok had once set foot in the fitness field, so Reebok would not be too strange in this area.

However, due to the late market entry, it may take some time to compete for more market share.

Need to break through

As the experts say, Reebok's main field of fitness is becoming more competitive.

Lulu lemon, Andemar and other competitors in the field of fitness can not be underestimated.

In the 2018 fiscal year, Lulu lemon achieved a revenue of $3 billion 300 million, an increase of 25% over the same period, and a net profit of $484 million.

Andemar currently has more than 660 stores in Asia, most of which are located in the mainland of China.

Last year, Andemar's income in the Asia Pacific region increased by 29%, ranking first in all regions.

For the current competitive situation, Cha Wei Wen believes that Reebok has unique advantages.

He said Reebok has a rich history story compared with other companies.

Secondly, Reebok has excellent R & D capability and technology level, and has many proprietary technology.

He also said that Reebok's women's fitness products will involve boxing, CrossFit and Lai's aerobic fitness and other companies.

But judging from the current situation, Reebok's brand influence is limited.

The experts said that Reebok wants to expand the market segments, and rely on "explosive products" to enhance competitiveness.

He believes that the "explosion of money", that is, the brand has won the market recognition, in short supply of products.

For example, Lulu lemon yoga pants, Andemar's sweat drying clothes are brand's "burst money", but also the main force to enhance performance.

At present, although Reebok has set up many series, but on the whole, there is still a lack of "burst money".

From the marketing point of view, whether it is the development of new technology or a long story, Reebok needs to apply it to a specific product.

Reebok needs a product to ignite the market.

At present, I think Reebok has not yet found an effective way to attract consumers' attention. "

The experts said.

Cha Weiwen also said that China is a competitive environment and consumers have many choices.

He believes that the biggest challenge now is to find target customers and deliver effective information.

And the way Reebok should deal with this challenge is to sign the right stars, set up shop in the right place, and provide consumers with the opportunity to experience brands.

The Chinese Commercial Daily reporter learned in the interview that compared with fitness products, some consumers seem more interested in the classic style of Reebok.

"Reebok's sports shoes have always accompanied me through the students' age.

In my opinion, the purchase of Reebok products is more of a habit, and even a kind of "feelings".

A consumer said, "Reebok fitness new products at present I am not ready to try.

Because I have more choices when prices are almost the same.

Reporters also interviewed some fitness people randomly. They generally said they were familiar with Reebok's running shoes, but they didn't know much about their fitness products.

The industry generally believes that for now, Reebok wants to have a share in the fitness field.

Author: Jie Yu Xing