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Sporting Goods Industry Show Recovery

Jan 07, 2016

In 2013, China's sports goods industry (sportswear, sports shoes, sportsequipment and sports product manufacturing and sales) increased to 208.7billion yuan, an increase of 7.8%, for 0.367% per cent of GDP, essentiallyflat with a year earlier.

Recently, the 2014 sports goods industry Summit Forum held in Wuhan, China.At the meeting, sports equipment Center Director, Vice Chairman of ChinaFederation of the sporting goods industry and Secretary General Li hua inthe publishing of the 2013 when the white paper on the development ofChinese sports industry, announced its figures.

Li hua, said the past few years, sports goods industry in a period of low-speed development. After active efforts, current industry has emerged topick up signs of recovery. The future, innovation will be the only way ofsustainable development of sports industry.

Three major development trends in the industry

Li hua, now sports three major development trends in the industry. First,the industry as a whole continues to expand the scale, but the core growthdriver needs to be reshaped. Value added of China's sporting goods industryin 2013, the first of more than 200 billion yuan, industrial scale to newheights. But starting in 2011, production is always in single digits levels,costs increase and growth bottlenecks, inventory pressure problem becomesthe limiting factor. Used to support China's sporting goods industry "goldendecade" growth path has been unable to promote the leap-forward developmentof the industry. Starting point for rebuilding the core competence byinnovation must become a key proposition to be cracked.

Second, the industry as a whole is still in process, the recovery trend toshow. Overestimation of the needs of the market the past few years, as well as macro-economic slowdown and other factors, lead to adjustment of China'ssporting goods industry is decelerating phase. After adjusting, the industryas a whole has shown some signs of orders rebounded to enterprisetransformation efforts significantly, re-examine product positioning,seeking competitive differentiation; international economic situationrecovery quite well and sporting goods companies recent earnings performancesignificantly. Despite the depth adjustment process will continue for sometime, but business innovation, positive, return to the road of healthydevelopment just around the corner.

Third, industry continued to increase, concentration will be furtherenhanced. From the industry changes during the development phase to therecovery phase, appears sporting goods industry categories can be expectedintegration of resources, innovation and development of the major patternchanges. By market positioning, product mix, marketing models, such asmaking a positive strategic adjustments in a timely manner, reshape the corecompetitive power of the brand, will form a winning market share, and eventhe international influence of the industry's leading brand, leading theChina sporting goods industry had entered a new stage of development.

Outdoor performance remains strong

Is of concern, compared with clothing, shoes, accessories and other outdoorgoods consumption performance. White paper on sports goods industry in Chinain 2013, according to the 2013 China outdoor market to maintain a certainspeed of growth, industry shipments amount to 9.68 billion yuan, an increaseof 30.99%. Among them, the domestic brands is excellent, shipping continues to exceed the amount of foreign brands, domestic outdoor brand shipmentsamounted to 5.02 billion yuan, an increase of 34.22%; outdoor brands shippedabroad amounted to 4.66 billion yuan, an increase of 27.67%. The nationalrise of own-brand, new patterns in the outdoor market in China.

Overall, the outdoor market are in the gold cycle, new consumers continue tojoin, depth of consumption continued to improve, composite characteristicsof consumers, the overall size of the market will speed up. Outdoor marketwill present three new trends: first, outdoor industry matures, formed thebasis of good consumers; the second is local outdoor brands accelerate twoor three line layout, to enhance the soft power all the more attention tothree outdoor products to the channel mode, e-commerce will become thepriority direction in the field.

Innovation is the only way

Zhao pingping, Deputy Director of the Department of Economic ResearchInstitute of Commerce consumption pointed out at the Forum, while theshuffle and adjustment of the sporting goods industry is coming to an end,and already showed a trend of gradual recovery, but the recovery is morewell-known brand, leader in the recovery, two or three lines brand was stilllooking forward to the arrival of spring. "Sports is still in its infancy in China. "Zhao pingping said sports consumption goods consumption higher than 80%, and sport service consumption is only about 10%, 20%. After consumersbuy sports clothing, if you do not participate in physical activity, therewould be no subsequent spending.

In this regard, Li Hua said that innovation will be the only way to achievesustainable development of sports goods industry in China. Priorities for the current adjustment period which is to resolve the deep-seatedcontradictions accumulated in the past. The key lies in innovation, bothmacro-level policy innovation, system innovation, the middle-levelmanagement model innovation, brand innovation, or micro-level technicalinnovation, marketing innovation, any attempts to break through existinginitiatives require the development model of innovation-driven. Sportinggoods industry practitioners to open the doors of imagination, and explorethe road of their own innovation and development.