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Sports Study II: Channels, And Channel Diversity Change Faster, Developing New Opportunities

Jan 07, 2016

Proxy mode dominant retail brand "Duopoly" pattern.

For international sports brands, general implementation of a multiple agentsystem in the distribution model. In 2009, "catch the big and free thesmall" policy, international brand in the domestic distribution system froma decentralized to a centralized process, channel gradually to the agentconcentration, consists of Baosheng and Belle brand retail "Duopoly"pattern, some small agents choose to give up the power of attorney or atakeover. In the course of this evolution, Baosheng focus more on exclusiverights to sports agent purchased through brand lines extend enhancedcompetitiveness; by contrast, Belle more channel-focused resource control,through continuous acquisitions, achieving channel has steadily expanded itsscale.

Emerging differentiated brand + channel or will be new opportunities forexpansion.

At home in the sports retail market duopoly structure, channel sinks will bean important opportunity for emerging brands development, fully benefit fromthe lower tier consumption upgrading in the future. For example, Skechers,New Balance and other high quality brands, as Belle, Baosheng Mall storemodel and price factor is not conducive to attracting consumers, street-sideshop is also an emerging brand of choice in the form. In addition, thebrands for game reasons, they tend to choose different types ofdistributors, instead of a single large distributor over-reliance.

Sporting goods consumer experience first, brand new favorite shop or thecollection.

Seen from the overseas mature market, integrated sports retail store "area,many brands, good service", is often the consumers preferred to buy shoesand equipment, such as sport, Intersport, Dix. Looking back at the domesticmarket, sporting goods retailers are not common, is the most successfulchain of France's Decathlon. With the rise of sports boom in nearly twoyears, and changes in consumer demand, multi-branding collection productsrich and experience the service good advantage is expected to gradually, orwill become the new darling of the next phase of the shopping centre.

Online channel development impacts limited return movements to experiencenature.

Sports brands in recent years with e-commerce, online channels thecompetitive situation and offline convergence, rival brands overseas andlocal brands, and concentration increased gradually. Currently, severalmajor sports brands within a 10% e-commerce sales accounted for more than the Basic, expected future levels of stability may be 20%~30%, most of theproducts highly moving experience, which also determines the future onlinechannel more exists as a complement to offline. With the emergence of newmodes, online interaction possibilities or will lead to more in the future.

Internationalization process at every step, pace of expansion is expected toaccelerate.

Overseas market expansion, along with local sports brand localizationmarketing ability, functional improvement, in the context of domestic marketstabilised and are on track, local brands International is expected to speed up the pace of the future, or will play an important role in the globalsporting goods market.

Focus on listed companies recommend: Bao Sheng international.

Short term, composed of Baosheng and Belle brand retail "Duopoly" pattern ishard to beat, with the rising appeal in consumer products, functionaltrainers demand increased rapidly, with Nike, Adidas two brands and emergingbrands such as Skechers agency Baosheng international benefit no doubt. In addition, apart from the Po sheng international, and with rapid expansionsof emerging brands such as Skechers, domestic agents distributors are expected to significantly benefit share the growth bonus under the newtrends in the industry.