Chapter 48 Chapter 11 Extraordinary 2007 (10)

Facing a multinational giant that started early and has strong capital (Nike's annual turnover is more than a hundred times that of "Li Ning"), it is not easy to defend while counterattacking.Looking around the world, the expansion of international giants is aggressive and overwhelming.There are Wal-Mart and Carrefour in the retail channel industry, and Coca-Cola and Pepsi in the beverage industry. These giant multinational giants have a vast territory, and they are squeezing their local market brands in many countries and regions. One question is, in the similar markets that other Big Macs also occupy, such as India and Brazil, are there any local brands in the sporting goods industry?In what way do they stand against the Big Macs? The Chinese company "Li Ning" may be regarded as good in the eyes of the Chinese people, but if it is compared with similar local companies in the world, is it better or worse?Looking around the world, as a local brand in developing countries, what is the value of "Li Ning"?India, a country that is frequently used to compare with China.In some respects, they are indeed similar: large populations, vast territories, and large economies.In fiscal year 2006, following China, India's GDP exceeded one trillion U.S. dollars, and its capital market also exceeded one trillion U.S. dollars, becoming the 10th country in the world whose GDP and capital market both exceeded one trillion U.S. dollars.At the same time, India also has attractive market development prospects.According to the economic report released by the World Bank, from 2007 to 2035, India will maintain an average economic growth rate of 10%.It is precisely because of these similarities that India and China have already competed fiercely in the international market in fields such as IT and textiles.In the sporting goods industry, India, like China, is facing competition from international brands such as Adidas and Nike that invaded the local market early.So, how are local brands in India doing?One of the most famous sports in India is cricket, almost everyone can play cricket, everyone likes it, children will play cricket after school. "Sanlian Life Weekly" reporter Yuan Yue described that he once took a train in India, "There were 8 people in the same car, all of whom were software engineers except me. Guess what they were talking about? Cricket." This shows its popularity.

However, it would be a big mistake to think that India's sports and sporting goods industry is very developed. In fact, during the Soccer World Cup, to the disappointment of out-of-town tourists, there were no local TV stations in India to broadcast the games, and the populous country has only won four or so individual medals in Olympic history. "Because India is relatively closed, they only like to play cricket and are not very interested in other sports. Football has only risen slightly in the past two years." Yuan Yue explained. And even cricket can't make India's sporting goods industry flourish - due to the hot climate in India all year round, people don't wear tightly wrapped shoes in many cases.At the same time, India's low-class population is as high as 700 million, accounting for nearly 70% of the country's population. The social gap between rich and poor is huge, and many poor people have to play cricket barefoot.Therefore, in India, Yuan Yue saw with regret: "There are almost no large local sporting goods suppliers." "Economic Information Daily" reported in June 2007 "Adidas Group plans to open 100 new stores in India every year": "By the end of 2006, Adidas had 165 stores in India." In contrast, in the same year, Adidas had 3,500 stores in China, 20 times that.The champion Reebok, which occupies 51% of the market share in India, has only about 500 stores.

In this regard, it is also a big consumer country, and "Li Ning" can be thankful that it has such a good market environment as China. Another country with a large consumer population is Brazil. In January 2008, "Business Weekly" reporter Zeng Na came to Sao Paulo, the largest city in Brazil and also the largest city in South America.The situation she described is: "Brazil's sporting goods market is well developed, but there are no local sports brands that are particularly prominent." Brazil is a traditional sports country, and sports events and national sports are very active. People who can see football.Here, there is a huge disparity between the rich and the poor in society, and the public security is poor. "Although in this country that deregulates helicopter control, rich people drive helicopters to and from the sky, but this is only a very small part of the population." Zeng Na said: "There are more common cars on the streets. This big consumer country A big feature is that people are content, the market environment is not impetuous, and they don’t pursue famous brands too much. An obvious example is that a store recommended by many travel brochures is located in the most important financial street in the city, but it only has one floor ordinary shopping malls, and the store with the highest consumption level in the local area has only three floors. It can be seen that the consumers here are not too much in pursuit of luxury goods, and are more civilian, which is not the same as the prevailing trend of consumerism in China. Brazil Because of music and dance, people are always enthusiastic and happy, kind to people, and full of sunshine in their hearts. They just love sports, and their pursuit of sporting goods brands is not as strong as that of Chinese consumers." In fact, in the past 15 years, Brazil The sportswear market is growing 8% annually.This is a huge number, and there are a large number of sports brands sharing this number. Compared with China's Adidas, Nike, and "Li Ning", which can occupy more than half of the high-end market, Brazil's high-end market brand concentration is far lower than China's.According to the data, Nike, Adidas, Reebok, Esikes, Puma, Topper, and LeCoq have already flocked to this market, but the total sales amount is not high.Adidas has no separate statistical data on the Brazilian market, only the sales revenue in the entire Latin American market in 2006 was 499 million euros, accounting for 5% of the total.A well-known sports brand in Brazil is called Matador, translated as "Matador", which is full of strong national style.