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Li Ning’s layoffs have become a “fuse†that stirs the “earthquake†of the sportswear industry; the sudden explosion of NBA Chinese player Jeremy Lin has triggered a fierce battle among major brands; and Jordan’s involvement in “trademark doors†once again puts people The attention of the sportswear industry has reached a climax.
Is the hidden “hidden†hidden in the sportswear industry behind the frequent incidents?
In 2008, local sports brands took advantage of the Beijing Olympics to expand wildly. However, after several years, this business opportunity has gradually disappeared, and the “buzz†embedded in market expansion is also detonating one by one. 2012 is bound to be a very sad year for domestic sports brands: Rapidly falling from high income and high growth, the market pattern will accelerate fission.
Some industry sources said in an interview with this reporter that the reshuffle of the Chinese sports industry has already begun. In this new round of market reshuffling, China's sportswear industry will shift from a multi-brand coexistence nationwide market to a small number of brands coexisting in the national market, and some brands will become regional brands or subdivisions, and the comprehensive national sporting goods company will shrink to 2 ~ 3 homes. For the enterprise itself, there is no way to go beyond clarifying its position and seeking to upgrade.
After the Spring Festival of the blind expansion, the layoffs of Li Ning Company, like a magnifying glass, exposed the downturn in the Chinese sportswear industry.
“Li Ning†is a landmark brand of China's sportswear industry and once occupied the position of the boss. In 2008 Beijing Olympic Games, Li Ning, the founder of the brand, personally ignited the Olympic torch and pushed the Li Ning brand to a new height. However, three years later, the performance of “Li Ning†not only failed to increase significantly but it has caused a serious downturn. The “magnificent plan†that was once used has now encountered an “accepted†dilemma.
In fact, not only Li Ning, many local sportswear companies have felt the chill of the entire industry slowing down. According to 361°, the company's sales dropped sharply from November to December 2011. The ratio of channel inventory in the fourth quarter rose to 4.2 times, and the number of new stores also fell to the slowest rate ever. The growth rate of Anta has also slowed down significantly: In 2010, the number of stores increased by 958, compared with 229 in 2011. Peak said that it will reduce its 2012 forecast: the growth of orders above 20% will fall below 15%, and sales are expected to increase in single digits. The three production bases that were preparing to invest close to 1.1 billion have slowed down. It plans to close about 500 stores while opening 700 stores...
Looking back at the history of domestic sports brands, it is not difficult to find that: In the 1990s, domestic sports companies emerged like mushrooms. Some famous athletes named the brand after the athlete's name. “Li Ning†is the representative. And a large number of cutting-edge forces, the predecessor of which is the coastal enterprises that are branded with international sports brands, directly use mature foreign products to make use of their products. Thanks to strong "Made in China" support, with the help of the Beijing Olympics and the "surge of going to Hong Kong," China's sportswear industry has risen rapidly and has expanded rapidly with the support of sufficient funds. However, the blind expansion has brought about various problems such as the deceleration of scale growth, high market concentration, and high inventory.
Li Guangdou, a brand strategy expert, also stated: “The current domestic brands face the predicament of being 'strong enemy before and after pursuit of troops'. After the homogenization of products, local brands did not grow well after the Beijing Olympics. "Indeed, China's domestic sports industry is facing the pressure of internal and external problems: On the one hand, the high premium foreign brands Nike and Adidas firmly control the high-end market of domestic sports brands, relying on the subsidence strategy and close to the people's prices. The domestic market is devoured. On the other hand, the competition among local brands has become increasingly intense. At the same time, the rapid rise of the sports and leisure market has also had a huge impact on traditional sports brands. â€
Brand upgrade wins reshuffle. Deutsche Bank and Goldman Sachs released a report recently saying: “The development trend of China's sportswear industry is not optimistic and uncertain.†In response, some experts said that the pattern of big reshuffling in the sportswear industry has been fixed. There is no need to break through the upgrade. According to Zhang Qing, CEO of sports marketing expert and key to the sports consultancy company, “The development of the industry will surely lead to brand upgrades at a certain stage. At present, China has no less than 10 sports brands with a scale of more than 3 billion. Homogeneity, through industry reshuffling, eliminating some companies with poor competitiveness, is beneficial to the long-term healthy development of the industry."
According to statistics from authoritative organizations, international sports giants Nike and Adidas spend 5% to 10% of their annual sales revenue on research and development of new products, which is 40 times the investment of local first-line sports brands such as Li Ning and Anta. Unlike Nike and Adidas, which sell ideas and culture, local sports brands pay more attention to product sales, blindly copying and imitating, and finally put themselves into dead ends. The days of cheap labor as core competitiveness are gone forever, and technological innovation has become a key competitive force for sports brands in the future.
Against this background, Li Ning's series of cost control measures, including layoffs, and the use of the London Olympics to enhance the adjustment of brand image have been questioned by many people in the industry. It opened the reshuffle of the local sportswear industry. Li Ning's brand leader told this reporter that Li Ning is the industry leader, ahead of other brands aware of the industry's problems, so take the lead in the transformation.
An industry insider told this reporter that Li Ning’s layoffs are a case of change and an industry landmark event. Many local brands such as Peak, Anta, and Xtep, in order to successfully survive the 2012 reshuffle years, continue to sublimate their corporate strength in the reshuffle and occupy the commanding heights of the industry, they must find a way to break through for themselves. At the same time, with the intensification of industry consolidation, 2012 will inevitably emerge the merger wave. Prior to this, Li Ning, Anta, Belle, and Pou Sheng have all had merger cases.
In the wave of shuffling, how will the new market structure evolve? The hegemony of hegemony, who floats? let us wait and see.
Is the hidden “hidden†hidden in the sportswear industry behind the frequent incidents?
In 2008, local sports brands took advantage of the Beijing Olympics to expand wildly. However, after several years, this business opportunity has gradually disappeared, and the “buzz†embedded in market expansion is also detonating one by one. 2012 is bound to be a very sad year for domestic sports brands: Rapidly falling from high income and high growth, the market pattern will accelerate fission.
Some industry sources said in an interview with this reporter that the reshuffle of the Chinese sports industry has already begun. In this new round of market reshuffling, China's sportswear industry will shift from a multi-brand coexistence nationwide market to a small number of brands coexisting in the national market, and some brands will become regional brands or subdivisions, and the comprehensive national sporting goods company will shrink to 2 ~ 3 homes. For the enterprise itself, there is no way to go beyond clarifying its position and seeking to upgrade.
After the Spring Festival of the blind expansion, the layoffs of Li Ning Company, like a magnifying glass, exposed the downturn in the Chinese sportswear industry.
“Li Ning†is a landmark brand of China's sportswear industry and once occupied the position of the boss. In 2008 Beijing Olympic Games, Li Ning, the founder of the brand, personally ignited the Olympic torch and pushed the Li Ning brand to a new height. However, three years later, the performance of “Li Ning†not only failed to increase significantly but it has caused a serious downturn. The “magnificent plan†that was once used has now encountered an “accepted†dilemma.
In fact, not only Li Ning, many local sportswear companies have felt the chill of the entire industry slowing down. According to 361°, the company's sales dropped sharply from November to December 2011. The ratio of channel inventory in the fourth quarter rose to 4.2 times, and the number of new stores also fell to the slowest rate ever. The growth rate of Anta has also slowed down significantly: In 2010, the number of stores increased by 958, compared with 229 in 2011. Peak said that it will reduce its 2012 forecast: the growth of orders above 20% will fall below 15%, and sales are expected to increase in single digits. The three production bases that were preparing to invest close to 1.1 billion have slowed down. It plans to close about 500 stores while opening 700 stores...
Looking back at the history of domestic sports brands, it is not difficult to find that: In the 1990s, domestic sports companies emerged like mushrooms. Some famous athletes named the brand after the athlete's name. “Li Ning†is the representative. And a large number of cutting-edge forces, the predecessor of which is the coastal enterprises that are branded with international sports brands, directly use mature foreign products to make use of their products. Thanks to strong "Made in China" support, with the help of the Beijing Olympics and the "surge of going to Hong Kong," China's sportswear industry has risen rapidly and has expanded rapidly with the support of sufficient funds. However, the blind expansion has brought about various problems such as the deceleration of scale growth, high market concentration, and high inventory.
Li Guangdou, a brand strategy expert, also stated: “The current domestic brands face the predicament of being 'strong enemy before and after pursuit of troops'. After the homogenization of products, local brands did not grow well after the Beijing Olympics. "Indeed, China's domestic sports industry is facing the pressure of internal and external problems: On the one hand, the high premium foreign brands Nike and Adidas firmly control the high-end market of domestic sports brands, relying on the subsidence strategy and close to the people's prices. The domestic market is devoured. On the other hand, the competition among local brands has become increasingly intense. At the same time, the rapid rise of the sports and leisure market has also had a huge impact on traditional sports brands. â€
Brand upgrade wins reshuffle. Deutsche Bank and Goldman Sachs released a report recently saying: “The development trend of China's sportswear industry is not optimistic and uncertain.†In response, some experts said that the pattern of big reshuffling in the sportswear industry has been fixed. There is no need to break through the upgrade. According to Zhang Qing, CEO of sports marketing expert and key to the sports consultancy company, “The development of the industry will surely lead to brand upgrades at a certain stage. At present, China has no less than 10 sports brands with a scale of more than 3 billion. Homogeneity, through industry reshuffling, eliminating some companies with poor competitiveness, is beneficial to the long-term healthy development of the industry."
According to statistics from authoritative organizations, international sports giants Nike and Adidas spend 5% to 10% of their annual sales revenue on research and development of new products, which is 40 times the investment of local first-line sports brands such as Li Ning and Anta. Unlike Nike and Adidas, which sell ideas and culture, local sports brands pay more attention to product sales, blindly copying and imitating, and finally put themselves into dead ends. The days of cheap labor as core competitiveness are gone forever, and technological innovation has become a key competitive force for sports brands in the future.
Against this background, Li Ning's series of cost control measures, including layoffs, and the use of the London Olympics to enhance the adjustment of brand image have been questioned by many people in the industry. It opened the reshuffle of the local sportswear industry. Li Ning's brand leader told this reporter that Li Ning is the industry leader, ahead of other brands aware of the industry's problems, so take the lead in the transformation.
An industry insider told this reporter that Li Ning’s layoffs are a case of change and an industry landmark event. Many local brands such as Peak, Anta, and Xtep, in order to successfully survive the 2012 reshuffle years, continue to sublimate their corporate strength in the reshuffle and occupy the commanding heights of the industry, they must find a way to break through for themselves. At the same time, with the intensification of industry consolidation, 2012 will inevitably emerge the merger wave. Prior to this, Li Ning, Anta, Belle, and Pou Sheng have all had merger cases.
In the wave of shuffling, how will the new market structure evolve? The hegemony of hegemony, who floats? let us wait and see.
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