subject: Chinese Sports And Leisure Apparel - China Generator Steam Iron - Travel Steam Irons [print this page] 2006 Li Ning hand the "big sharks" O'Neill's press heat is still, the ear has heard the news of their marriage of the Swedish Olympic Committee. Localization and internationalization of China's sports and leisure apparel industry has been the development of two doors. With China's sustained economic development and the popularity of sports, combined with the 29th Olympic Games approaching, China's sports and leisure apparel industry, this open-air gold mine, will lead to greater influx of foreign businesses and investors.
The face of strong attack foreign brands, local brands are quietly into the industry, and rejuvenating the country catch up with the ideal, beyond the reality of competition. Perhaps an instant, more "Shark" will emerge. On the world stage, they fail to do the next one who only did the first one I have.
Competition: local is still the main battlefield
Institute for Research in Price Waterhouse in the new release of "2006 China's sports and leisure apparel Report" analysis, sports and leisure, fashion three constitutes a sports and leisure apparel throughout the world today in China, sports and leisure apparel is already a sports apparel , casual sportswear and fashion apparel collectively, China's sports and leisure apparel consumption increased annually, in 2006 reached more than 260 billion yuan.
However, this figure must register, the Chinese people's sports and leisure clothing per capita annual consumption of less than 100 yuan, there is a huge room for growth. Experts point out that if China's sports consumption can reach half of the United States and Europe, it will be at least 2 trillion yuan to form a large market.
Sports and leisure clothing requirements for the major production of "raw material" for textiles and labor, these two commodities in China is very rich and cheap. But the market is continuously developing, with the future of sports and leisure apparel market, competition, brand and fabric on the market, processing, design, marketing and all aspects will be more demanding, labor costs will also be a corresponding increase in maturity of the Chinese market to become an international sports brands and domestic brands the biggest battlefields in China.
The traditional foreign re-brand, re-quality, domestic re-pricing, re-channel the competitive landscape in 2006, a marked loosening. On the one hand, international brands have to adjust the sales strategy in China, heavily pound channel construction, will look increasingly Miaoxiang 2,3-class city, as people's living standards improve and demand growth, middle market for international brands accepted by the ability growing. Nike and Adidas regarded China as the most important future extension of the market, Nike plans to 2008, the current expansion of its China stores in 2300 to 3400; Adidas plans to 2010, the current 2500 Chinese stores doubled, and the acquisition of Reebok in 2005 years of Chinese stores in order to increase the speed of expansion of 200-250 home sales in 2010 reached 1.28 billion U.S. dollars, that is, between 2005-2010 compound annual growth target rate of 27.16%.
While domestic brands in the absence of strong brands, market barriers in China's accession to the WTO's role has almost disappeared, a number of negative factors have to a large extent depend on the price factor for the market made a tremendous impact brands. The other hand, Li Ning, Conway, Anta, etc. were represented by the strength of strong Chinese army is waging increasingly tackling the brand. As the technology inputs constantly increasing, the improvement of scientific and technological content and market offensive constantly enhanced to keep the medium price range of these products in the same time, some of the features of products began to "foreign brand" to launch shock.
Industry: domestic production advantages to enlarge
In recent years, China's sports and leisure products market in the top 10 brands, in addition to one or two is a foreign brand, is Li Ning, Conway, Anta, Double Star, gweat the strength-type "Chinese Army." They repelled the "foreign brand" of the attack, the successful rise. China's top 10 list, Nike has also been the past four years there, but the Adidas in 2003, after no further appeared. For 5 consecutive years, Anta are more than 8% of the market share Wenju comprehensive "China's tourism market, sports shoes," the first place, Double Star, Li Ning has also shown his outstanding performance.
The background behind this is that 65% of the world of sports shoes produced in China, Anta located in Jinjiang China, annual output of 900 million pairs of various shoes, travel shoes accounted for 40% of domestic production, world production of 20%. Again in 2004, Nike, Adidas no longer as a major competitor, but chose to Li Ning. But this year, Nike's sales in China, Li Ning, was lost.
At present, Jinjiang sports apparel market share in the rapidly expanding Chinese sports apparel brand to create a great cluster trend. Jinjiang a few large enterprises have established a mature sales network in recent years, they increased the brand's promotional efforts in the China Central Television and other powerful media ads on the generous land, attracting a large number of distributors, sales outlets into its terminal -fold increase, including stores, shopping malls, including counters, almost every brand sales outlets in more than 1000, and some even reached more than 2,000. Such a maturity and a huge sales network for the sales of wearing apparel offers inherent advantages.
Previously, these brands store is small, only the shoes had been placed almost, clothing only as a decoration or accessory products. With the growth of enterprises, brand enhancement, to store growing demands, area multiplied to expand, just shoes, has been placed does not meet the larger space, and therefore the number of sports apparel has become the objective needs ; the other hand, sales of sports apparel is increasing market share continues to expand, prompted the owner of shoe-making enterprises were transferred to a portion of energy production and sales of sports apparel up to become a new profit growth point.
Although China's sports and leisure apparel OEM business most of the enterprises in order to do mainly the lack of well-known brands, in general, difficult to 1:00 in the high-end market has to compete with foreign brands, but China certainly more and more intense competition in the market, every Chinese enterprises want to in the impact of foreign brands make a difference.
The future: anything is possible
Institute for Research in Price Waterhouse expert pointed out that the Chinese sports and leisure apparel industry, the prospect of shuffling is not very far. Before and after 2008 there will be a big turning point. Consumer demand for the brand a corresponding level of the ground, but the main factors supporting the brand is technical. "In the future competition in sports and leisure apparel industry is not only a brand of competition, more competition in the technology." Expert asserts.
With the 2008 Olympic Games approaching, the Chinese consumers are increasingly involved in various professional sports, professional sports equipment demand is rising. Even conventional sports such as jogging, line the city's consumers are already beginning to show professional needs, such as required equipment with good ventilation and so on.
From the future development trends, sports apparel market will be further subdivided, including the brand with relatively low concentration of the newly-developed markets, such as fever accompanied by the advent of skiing, professional ski suits and supporting the product sales will be enhanced; also includes the original There is further broken down within the professional market, such as fitness clothing, fitness venues to serve the people with a further breakdown of its high-end professional products is expected to be filled in the blank.
China's sports apparel products based on the Volkswagen brand, based on the development of various sports of professional product development model is correct, as consumers of their tendency to enhance the professionalism brought sustained benefits. But their functional segmentation of marketing efforts is not enough, with the intensification of market competition, the domestic sports apparel enterprises to grasp the process of market segmentation, the availability of more specialized products to follow up the international market positioning of the follow-up It is the ultimate and Nike, Adidas and other international brand competition the key to victory or defeat.
Meanwhile, the domestic to the international development of companies face an important opportunity. The process of internationalization for domestic sportswear companies find it challenging, "internationalization" is not exporting more goods abroad to open several stores so simple, but requires an international team of companies from many other aspects of good reserves.
At present, China's sports apparel companies have from the product came out in the irrational structure, but also "heavy manufacturing, light R & D" phenomenon has been greatly improved. Homogenization of the trend in the product more and more serious today, who can make a difference leading technology, and for the sake of consumer demand for personalized products, who will be consumers. Also, sports apparel manufacturers in addition to enhancing the professional performance of clothing, while the masses of sports around the needs of the masses by reducing the cost of providing affordable clothing products. As long as the most able to seize the vast Chinese market, and steadily promote the internationalization strategy, China's domestic brands in the future as market competition, will nothing is impossible.
Brand: Beyond the "Nike of survival"
Institute for Research in Price Waterhouse report, an analysis of the current local brands to compete with foreign brands in the emerging new trend of the times beyond imitation. Such as Li Ning, Nike imitation, "Li Ning" in the market positioning and marketing approach is similar with Nike. The report showed, "Li Ning" in product development and marketing expenses account for 17% of sales revenue; of these marketing expenses account for 15.4% of sales revenue, with 17% of Adidas, Nike, the proportion of almost 12%. From the end of 2003, "Li Ning" will shift the axis of brand Nike and Adidas account for the high-end market; early in 2004 and formulated the basketball category of professional development strategies, especially basketball shoes, and Nike's a direct confrontation between the traditional strengths, and launched a series of sponsoring international sporting events and "star endorsement" of the marketing campaign: the NBA, ATP, etc. to achieve a partnership with O'Neal, Damon Jones and other NBA stars and France, Spain, Sudan, Olympic team and many other countries signed a brand spokesperson contract.
For a long time, Li Ning, imitation remains the most easily replicated "star endorsement" of the marketing and the "asset-light operation" of the capital model. This follow the strategy of Li Ning has achieved some effect: the company's gross margin and net capital gains is higher. This makes Li Ning has maintained a relatively rapid rate of expansion of its distribution network is the apparel and footwear manufacturers in the most extensive, and in 2008 the total number of stores is expected to reach 5,000.
The problem is that Li Ning's sales grew more slowly. Nike and Reebok's competitive history shows that Reebok in the gross margin, return on equity target rate exceeds the Nike case, precisely because of the widening gap between revenue and gradually lost their competitive edge. Data show that the high marketing costs Reebok is not the way to improve sales, indicating a simple imitation of Nike to "asset-light operation" high risk, an extension of Nike products is its realization of the key to winning. These may really be worth, "Li Ning" and the Chinese footwear enterprises learn from and emulate.
Movement to a certain extent, the market belongs to a fashion market, consumer tastes change quickly, order instability, the impact of higher corporate profits. Even Nike itself, also in 1987 and 1998, subject to consumer preferences change, extension of markets and the tremendous impact of differentiated products, indicating the market latecomers still exist "beyond" opportunities.
China's strategy and its international giants have extended the market's rise through the experience has shown that the current Chinese market, Li Ning, and other footwear companies may provide a rare from the "imitation to the beyond" opportunities. In addition, catch the last century, Nike, Adidas 90 years of experience shows that the use of acquisitions to seize advantage of the market and competitive differentiation, but also an effective way to accomplish this change.
