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China's Sporting Goods Industry In The Face Of Winter Changes

Jan 07, 2016

China's sporting goods industry association today issued the 2012 white paper on development of China's sports goods industry (hereinafter the"white paper"), domestic sales of branded sportswear, footwear product in2012, after 2011, again on a down trend. Vice Chairman of China Federation of the sporting goods industry, the State General Administration of sportequipment Center director Li Hua said, change has become the key to China'ssporting goods industry. China's sporting goods industry ushered in the late90 's of the last century "gold" development opportunity, but lasted formore than 10 years of "feast" is finally ended, industry has started in thenext few years, a number of the sporting goods companies can't keep up with the pace of change will be eliminated.

"White papers" disclosure, 2012 national sporting goods companies sales ofathletic footwear, apparel, compared with the previous year by 29.69% and 19.28%, respectively. Athletic footwear, apparel production and constitutethe main body of China's sporting goods industry, by 2011, characterized bythe rapid development of athletic footwear, apparel manufacturers, sportinggoods industry in China after more than 10 years of "Spring". Recalls onedomestic sports business executives, which at the time was described as"gold".

It will pass away in the spring, is not the summer that followed.

Starting from 2011, and a cold snap swept China sporting goods industry, todouble-digit annual growth for more than 10 years of development of domesticsports clothing, footwear market, there have been signs of peak performance,growth, stagnation and even regression. A flag as China's sporting goodsindustry of the company in 2009, domestic sales was more than adidas, was ranked in second place. Starting from 2010, the performance of the companyinto decline, net profit continues to decline until 2012 big losses ofnearly 2 billion yuan, company stock from April 2010 in 32 Hong Kong dollarfall to around HK $ 4.5 now, or 80%. Fluctuation of the performance of LiNing company was a microcosm of the sporting goods industry in China, oneChinese sports business executives that "company's life difficult. This pastyear was also negative sales growth for the first time since the companysince its inception. "

Inventories increased and profits, is the General sporting goods companiesare facing problems.

After the 90 's of the last century, with the increase of China's national income, consumer demand increases in sports clothing, footwear, cheap China-made sporting goods become the first choice for consumers. Strong marketdemand has spawned a large number of domestic sporting goods company,Jinjiang, Fujian, only one, sportswear, footwear manufacturers up tothousands of homes.

Products are the same, business marketing is modelled on, and even"shanzhai" brands abroad. "Sportswear, shoes manufacturer in China, a majorproblem is that serious homogenization of products and business models. "Li Ning in 2013, China's sporting industry peak Forum today.

2010 yihou, with income level of continues to improve, China consumers on movement clothing, and shoes of needs standard also in upgrade, affordable of products has cannot on consumers produced enough of attraction; manufacturing cost of fast rose, also in offset domestic sports supplies of low price advantage; coupled with international sports brand on China marketing strategy gradually from high-end to civilians change, China sports supplies industry faced of both inside and outside competition pressure increasingly big.

If the price was competitive advantage of China's sporting, then throughoutthe industry into "winter", remount building core competitiveness has becomethe consensus of Chinese sports goods enterprises.

"Shaping the brand, market segment", which is a Chinese sporting goodsbusiness executives set strategy for the future development.

How to shape the brand, for a sporting goods company in China, is still amajor problem.

International sports supplies Federation Legal Committee President Chievres today in China sports supplies industry peak Forum Shang lift has a China sports supplies in Germany put advertising of failed case advertising painting Shang printing has this China enterprise in Germany main push of a paragraph Marathon shoes, but advertising painting Shang of image spokesman is is one Sprint players, "such a site advertising painting of theme disorder, will let German think is strange, will think this brand is not professional. ”

Chievres believes that sporting goods enterprises in China should be onmarketing strategy and brand has its own clear position, "not" suidaliu ",someone else what product I'll have product, what they advertise I justadvertising. Should want to know why I launched this product, why this kindof advertising. If it had been applied to do what others are doing their ownproducts, products of the business in addition to lower prices, would haveno means of competition. ”

China's sporting goods industry is experiencing an unprecedented crisis, butin view of the development of the sports industry from abroad, this crisisis normal, is also favourable for further healthy development of theindustry.

Li hua believes that industry for sporting goods enterprises in China isurgent, in our business will continue to grow, beyond the transition ofenterprises will be eliminated. The next few years, after having experiencedthe industry reshuffle, concentration of the brand of sports goodsenterprises in China will increase.

Left to the successful enterprise of Chinese sporting goods market, will bea much bigger piece of heaven and Earth. In accordance with the sportindustry statistics in developed countries, can account for the increasedvalue of the sporting goods industry to a country or region 5% per cent of GDP. China 2012 years of GDP is 55 trillion Yuan Yuan, 5% of digital is 2 trillion ~3 trillion, and 2012 China sports supplies industry of increased value is 193.6 billion yuan, only accounted for GDP of 0.37%, market development potential still huge, no wonder one China sports supplies Enterprise boss said, "this industry still is over gold, just, gold not in ground Shang has, but in to under, who has approach, who to dug get. ”