Growth In Retail Sales Slowed Down To Betting On Basketball Market Promotion

The 2019 two quarter business Bulletin released by the group showed that the retail sales of 31st degree main brand products in the two quarter of 2019 (at retail value) increased by a low percentage per unit over the same period in 2018. In the two quarter of 2018, the retail sales of the main brand products increased by a year. In fact, the growth rate of retail sales is slowing down.

It is noteworthy that shortly after the announcement of the earnings report, the brand strategy was launched at 31st, hoping to shift from the middle and low end market to a second tier city through the deep ploughing of the basketball market. In the eyes of the industry, it can also interpret its desire to boost its performance from the brand strategy of 360 degree.

In the brand remolding strategy, 360 degree clearly stated that in the next three years, 1000 basketball courts will be operated in a second tier city, and will be close to the most extensive mass sports market through "basketball into the community".

On the 31st level, there are 450 million basketball lovers in China, and 29.5% young consumers will buy basketball related products, hoping to strengthen the connection with this huge consumer market through this project.

Basketball really has broad market potential and potential. Tencent Penguin think tank in the "2018 China basketball industry white paper" said that basketball has become the first sport in China. Among the two typical groups of young people under 20 years old and 25-35 years old adults, the number of Internet users who liked the best basketball players were 52% and 40% respectively, ranking the first among all sports.

In fact, the 31st degree has been working hard in the basketball market. In April 2019, the basketball shoes with the theme of "traditional Chinese culture" were launched. Meanwhile, the 31st degree has also signed Frey Dieter, a former Shanghai foreign aid who has just returned to NBA.

But on the track of basketball market, there is not only one player with 360 degrees. In the domestic market, apart from local Anta and Lining, there are also international brands such as Nike and Adidas. At present, Nike occupies a leading position in the Chinese basketball market. In the 2018 fiscal year, Nike's Greater China revenue exceeded $5 billion for the first time, of which basketball was the support of Nike's revenue.

In addition to international sports giants, domestic brands have also stepped up the basketball market. Anta, a local sports leader, has signed NBA stars such as Clay Thompson and Hayward. At the same time, Anta is also the official NBA market partner and authorized company, and has the right to sell products with teams and alliance logo. It is particularly necessary to point out that in recent years, Anta has made tremendous contributions to the growth of basketball.

Let's look at Lining, who has become the exclusive official sponsor of CBA for five years in the top domestic league by 2 billion yuan. In addition, Lining signed a contract with Wade and became a successful case of a local star. Wade's road is currently one of Lining's best-selling products.

According to insiders, basketball market is full of imagination, but basketball market competition is also fierce.

In addition, in the plan of 31st degree, we also hope to promote the main force of consumption from the middle and low end market to a second tier city through basketball. According to the 31st annual report, by the end of 2018, there were 5539 stores in 31st degree, 26% of which were located in department stores, 74% of which were located below three line cities, and the second tier cities accounted for 7.4% and 18.6% respectively, accounting for 26%, and this data was 26.5% in 2017.

"In the process of brand remolding, 360 degree is also concentrated in three or four line cities, specializing in low-end market, lagging behind in improving brand image and brand premium capability." People in the industry are so analyzing.