Chapter 36 Chapter 10 Competition (6)

In the Chinese market at that time, fashion brands were popular, and Harmony-Japanese and Harbin-Korean styles were prevalent in China.Whether the enterprise can survive depends not only on whether you can keep up with this change, but also on whether you can lead this change.Chen Yihong decided to give Han a complete blow to the sportswear. Due to the needs of sports, most sportswear on the market are loose-fitting.However, Chen Yihong went against the tradition, and even sportswear had to be designed with a waist.This slim, new and often sequined style isn't really suitable for professional sports, but, heck, it's good-looking and stylish, it can be worn for most occasions, and it can make people look sporty and fit.

Dongxiang, Li Ning and Anta are respectively positioned in the high-end market, high-end market and low-end market, and their gross profit margins are also in line with their market positioning.But it can be seen that Anta is gradually developing to the high end. "In the end, the production cost of Kappa products is much higher than in the past, but because it caters to the preferences of consumers, especially trendy people, the new products sell well all over the country as soon as they come out, so the retail price has also risen a lot compared to the past. "With the help of sports and entertainment marketing, Kappa's sales exceeded 1 billion yuan in one fell swoop in 2006. In the same year, Dongxiang Sports sold 20% of its shares to Morgan Stanley and obtained financial investment from Morgan Stanley.

In this keenness to the brand and the pursuit of details, on October 10, 2007, "China Dongxiang" controlled by Chen Yihong was officially listed on the Hong Kong Stock Exchange, raising funds of 700 million US dollars and a market value of more than 20 billion yuan. .According to the figures released by the survey agency ZOU Marketing, Kappa ranked fifth in the domestic sporting goods market in that year, second only to Nike, Adidas, Li Ning and Anta.If calculated according to foreign brands, it suddenly surpassed foreign big names such as Reebok and Puma. Next, Chen Yihong, who has achieved the first step of success, still faces a greater challenge: management and development.He said that Kappa's positioning is sports fashion.Sports are as determined as men, fashion as fickle as women.The challenge Chen Yihong faces is how to turn a "fast company" into a "stable company"?And this road is still very long.

World brands are not dream Nike, Adidas, Li Ning, Anta, China Dongxiang and other companies are destined to compete fiercely in the Chinese sporting goods market. But, thankfully, there won't be a vicious price war between them. In the Chinese market, the home appliance industry once experienced a price war due to the suppression of multinational companies, and the price of the beverage industry was also chaotic. However, the sporting goods industry has never experienced such a vicious price war, showing healthy industry development characteristics.Part of this should be attributed to Li Ning, which pursues healthy and sustainable development. Its long-term dominant position has established a healthy foundation for industry development. Even its opponents have to admit that its attitude from the brand has blocked price wars and other Chinese manufacturing. disease, and advocated a healthy industry environment.

Li Ning himself is engaged in gymnastics, and this is not a confrontational event. "You have to do your best." Li Ning himself said.When Li Ning led the company to seek the road of self-development, it also did not adopt a highly confrontational price war. The company founded by this idealist pursues sports and brands, not just profits.This is a breath of fresh air in a harshly competitive industry. In addition to market rules, sporting goods companies have their own set of guidelines: they must firmly believe in sportsmanship and rules, which are the foundation of winning.Adolf Dassler, the founder of Adidas, and Knight, the founder of Nike, are both people who love sports, are deeply interested in the design of sporting goods throughout their lives, and are friends with athletes.From the perspective of the Chinese market, athletes like Li Ning, Chen Yihong, and Li Weiquan, and Ding Zhizhong, a businessman who hopes to link the brand with the spirit of Chinese sports, all have a passion for sports in their hearts.The role of this pursuit of sports and sports in the development of the industry cannot be measured, but it is of great significance.

In addition, from the perspective of the Chinese market, the sporting goods industry is farther away from institutional factors than other industries. The three largest local sporting goods companies, Li Ning, Anta, and China Dongxiang, are all listed in Hong Kong. Adi Dassler, who loves sports, made sneakers by hand at the beginning of World War II.After World War II, with the recovery of the economy, Adidas began to develop. At that time, he did not expect, nor did he live to see the huge Adidas empire all over the world.Nike is different. The founder Knight spent more than 20 years turning the small workshop into the world's number one.The opportunity of his time is that he met the "baby boomer generation" in the United States, a period of more mature consumers and stronger spending power.