Chapter 37 Chapter 10 Competition (7)

In China's sporting goods market, sports lottery and national fitness plan have laid the foundation for national fitness.In China now, the baby boomers have grown up, and a new wave of consumption boom is emerging. The upcoming 2008 Beijing Olympic Games will bring huge opportunities to China's sporting goods.If China really wants to produce world brands, it will be easier to produce them in a healthy industry. Optimistically, the question now may simply be: who is it?when? The channel battle is on this street, and there are two Li Ning stores less than 100 meters away. The red "L" logo on the signboard is very eye-catching.Not far away, you can see two shops with Nike "fat hooks" hanging high.Walking along the road, you can also see Anta, Adidas, Reebok... This is the famous Wangfujing Commercial Street.

This street used to have a rare hundreds of shopping malls in the planned economy era, and was once known as the most famous commercial street in China with the model of "buy the whole country and sell the whole country".So far, countless local consumers and tourists from other places are thronging this street every day.Opening a brand store here is not only of commercial significance, but also of symbolic significance.Now, this street has become a microcosm of the brand wars staged by sporting goods companies. In addition to major brand stores, walking along this street, you will also see two shopping malls: Oriental Plaza developed by Hong Kong Hutchison Whampoa and New Dongan Shopping Center under Hong Kong Sun Hung Kai, both of which have sports goods counters Or Sporting Goods City.Going forward, you can see the cross-world sports store and Beijing Tianyuan Lisheng Sports Commercial Building, a time-honored brand with a history of nearly 80 years.Specialty stores, flagship stores, special counters, sports city... various sales formats of sporting goods gather on this street less than 1,000 meters long.This shows the fierce competition in the sporting goods industry.If you count the different forms of advertisements of Nike, Adidas, and "Li Ning" on the street, this kind of competition can be described as lively.

In fact, this situation does not only appear in the iconic Wangfujing Commercial Street, but also in many places in China.In Jinjiang, Fujian, China, the footwear manufacturing base, on a commercial street about 500 meters away, there are Reebok, Puma, Adidas, Nike and local Jinjiang Anta, 361 degrees, Peak and other specialty stores, which can be seen almost every few steps Go to a sporting goods store.Outside the residential quarters and commercial streets that have sprung up like mushrooms in China, you can often see sporting goods stores.There are six or seven sports goods stores of different brands on a new commercial street less than 400 meters away, and even a sports goods mall is not new.

Channels are the focus of competition among sporting goods suppliers.Now, the competition for channels is more intense. In the sporting goods industry, giant distributors in the form of sports cities have emerged in recent years.At present, the three largest sports city brands in China are Taobo Sports, Shengdao Sports and Leading Sports. Taobo Sports City, a subsidiary of Belle International, acted as an agent for Nike products in 2006, and its sales have reached 1/4 of Nike's total sales in China. It is one of the largest distributors of Nike and Adidas in China. On May 23, 2007, after Belle International was listed in Hong Kong, its market value reached 67 billion Hong Kong dollars.In the prospectus, Belle has listed opening 1,000 new stores each year, which also includes plans to build more retail sports malls.

The second brand, Shengdao, comes from Taiwan's Baocheng Group.Baocheng, the largest sports shoe processing company in the world, is the manufacturer of Nike, Adidas, Mizuno, Puma, Li Ning and other internationally renowned sports shoe brands. It has more than 100 production lines around the world and controls nearly 1/4 of the sports shoes production of world famous brands. .Procheng's Shengdao Sports (formerly known as "Interactive Sports") now has about 3,500 sporting goods retail stores.Just in the first half of 2007, Shengdao Sports just obtained a large proportion of agency rights from Li Ning Company.The goal of Cai Naifeng, the executive general manager of Baocheng, is to "strive to become the largest chain channel of sporting goods in the world and become the 7-Eleven in the field of sports and sporting goods".

The third company is the leading sports company that is unwilling to be suppressed by the giants and resists in advance. In April 2006, Shenzhen Longhao Sports, Sichuan Jinlang Sports, Zhejiang Ruili Sports and Shenyang Pengda Sports jointly established Leading Sports.The regional overlords of the four companies have obvious advantages. After the merger, the annual sales exceeded 2 billion yuan, and they also became the Chinese agents of international brands such as Nike and Adidas. In this case, some people in the industry believe that in 2007 the "three pillars" pattern of sporting goods channels has emerged.

In addition to these giants occupying the first-tier high-end market, there is another factor that needs to be considered, that is, China is undergoing a rapid urbanization process, which will bring vitality to consumption.According to data from the National Bureau of Statistics, China's urbanization rate was about 43.9% in 2006. During the urbanization process in the past five years, China's urbanization rate has increased at an average annual rate of about 1.2%.Behind these numbers, new and unfamiliar towns have emerged on the fringes of the big cities.Perhaps just 5 years ago, these areas were almost empty, but today they have undergone a massive construction boom, some striking high-rises, small roadside grocery stores, real estate agencies, and slightly scruffy The massage room has become a new landscape in these places.This is part of the second- and third-tier markets that multinational giants cannot reach.In a small city like the county seat, one of the biggest entertainments for fashion-conscious young people is to watch TV. They are influenced by the stars of football and commercials on TV, and they are also more interested in the kind of sporting goods that can make their image instantly taller. crave.In the future, this situation will become more obvious.Statistics show that from now to 2010, China's urbanization rate will increase to about 55%, and the urbanization rate will increase by an average of more than 2% every year, which means that about 20 million people will move from rural areas to urban areas every year.A study from the United States shows that China's second- and third-tier markets are huge. It is estimated that by 2008, the scale of China's domestic sporting goods market will reach 80 billion yuan, of which more than half (about 47 billion yuan) of the market is in the second-tier market and third-tier cities.