Not delicate enough? NO! Domestic sports brands have counterattacked collectively
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Not delicate enough. This is the label that the female lord puts on the special step shoes worn by the men in the case of the refusal of a special blind date in the hot search rankings in recent days.
Similar situations may have happened. The domestic mobile phone, which was once called by a cottage phone, has long since managed to get rid of the cottage's hat and become a climate, even going abroad. Although Xtep, Anta, Li Ning, and 361 Degrees are well-known to the public, once they were in the despised chain, domestic sports brands have long been buzzing with the national fitness boom and relying on the upgrading of consumerism to make a difference in their respective counterattacks. , all show supernatural powers.
Foreigners use the curve to save the country and create billions of Anta
Nine years ago, in a doubtful voice, Baili Group acquired the loss of FILA China business. Anta China's transformation of FILA's series of grounding gas has earned Anta the top spot in domestic brand revenue and market value. In 2017, ANTA's revenue exceeded 10 billion yuan, and the market value was once close to 100 billion Hong Kong dollars, ranking third in the global ranking of sports brand market value.
In fact, prior to the acquisition of FILA, Anta had sold the agency retail business of three international brands: Adidas, Reebok and Kappa due to unsatisfactory profitability. In 2007 alone, the net loss amounted to 5.5 million yuan.
After taking over FILA, Anta returned its brand positioning to high-end fashion sportswear, and the strategy of ANTA, a mid- to high-end consumer market in the first and second tier cities, proved to be effective. FILA began to drive Anta to turn a profit. In 2016, Anta's net profit increased 16.9% year-on-year. Among them, FILA succeeded in stimulating the gross profit rate of apparel categories to rise by 32 percentage points to 51.0%, and drove the company's overall gross profit margin to increase by 1.6 percentage points to 48.4%.
After tasting the sweetness of the acquisition of FILA, the development planning of Anta is becoming clearer and clearer: On the premise of adhering to the self-owned brand's cost-effective attributes, it will acquire more domestic and foreign high-end brands. According to statistics, retail sales of non-Anta brand products in the third quarter of 2017 increased by 40% to 50% year-on-year, far exceeding the 20% to 30% growth rate of the Anta brand in the second quarter of 2017.
Nelson Wang, head of Nelson Sports Research, told Xinhuanet.com that in the context of the National Belt and Road Initiative, in the process of accelerating Chinese brands' progress towards the international market and creating a global sports industry chain system, domestic sports brands have opened up overseas markets and implemented local brands. Internationalization is an effective strategy.
To break into the revenue of Specialized Special Profits
At the just-concluded 2018 China Marathon Expo, Xtep’s giant sneakers were brightened at the top of the booth. We believe that a sports brand must strive to be the first in a specific area. The unique label of Xtep is that everybody thinks of running and think of Xtep. Ding Shuibo, chairman and CEO of Xtep Group, emphasized in an interview with Xinhuanet.com. As the sports brand with the most sponsored marathon events in China, in 2017 alone, Xtep sponsored 29 marathon events. Running and football are the two professional development directions identified by Xtep.
Correspondingly, the domestic sports brands represented by Xtep are investing in product research and development. According to the 2017 mid-year report, Anta’s R&D expenditures accounted for 2.9% of revenue from 2.3% last year, followed by Xtep from 2.3% to 2.8%, while 361 degrees rose slightly to 2.9%.
Picture Source: Xinhuanet
Behind the continuous investment in research and product development is the determination of the domestic sports brand to continue its transition to specialization. We have found that consumers are more and more professional. They are looking for professional products, professional technology, professional technology, and professional equipment to serve the sports needs of different situations such as running and skiing. Li Ling, vice president of Anta Group, said in an interview with the media. The reason for Xtep’s transformation is also because compared to casual footwear, functional products are more cyclical and relatively small (eg weather, macro).
At the same time, smart sports equipment is another major force for domestic sports brands to become specialized. Li Ning integrated smart elements into its own technology platform and launched a series of smart running shoes jointly with Xiaomi. 361 Degree Sports and Baidu introduced smart children's shoes with high-precision positioning capabilities, but also to monitor the child's physical condition.
It is also the professional sports products with higher profit margins that bring rich gross margins to all brands. According to the mid-2017 report, Anta's gross profit margin reached 50.6% and it successfully surpassed foreign sports brand giant Adidas. Li Ning, Xtep's gross profit margin is as high as 43%.
Picture Source: Xinhuanet
Under the strategy of specialization, the market share of domestic sports brands has also increased. The “2017 Internet Sports Consumption Report†released by Jingdong Sports showed that the sales of Li Ning, Xtep, and Anta were among the top five in terms of sales, and were ranked among the top five sports brands in domestic Internet consumption with Adidas and Nike. In the category project, Xtep, Anta, and Li Ning were among the top five most popular sports shoe brands; among the top five sportswear brands, there are also Li Ning and Anta.
Image Source: Jingdong Sports Brand reinvents heavy investment in celebrity endorsement and offline activities
After the market value and revenue have laid a solid foundation, in order to truly change the stereotype of the audience, the investment made by domestic brands in the promotion of variety shows, events, celebrity endorsements, etc., can also be called generous.
Xtep stepped up its promotion and sponsorship of running and football. In the first half of 2017 alone, advertising and promotion expenses accounted for 12.2% of revenue, an increase of nearly 3% year-on-year to reach RMB 280 million. In the same year, Zhao Liying and Lin Lin were also signed to create a new image of the sport.
While focusing on the marketing of large-scale sports events, 361 Degrees also signed a number of sports and entertainment stars. Sun Yang is one of the most influential sports spokespersons in the company, in addition to CBA foreign aid Jimmy Fredette, national swimmer Liu Xiang, and well-known singer and actor Wei Chen.
Picture Source: Xinhuanet
It is not difficult to see that professional sports and entertainment fashion are two major keywords for domestic sports brand marketing. On the one hand, consumer demand for specialization has gradually increased in all segments of sports. On the other hand, attracting young consumers and shaping a dynamic brand image of sun, the flow effect of entertainment stars is self-evident.
In Wang Xi’s opinion, young people are indeed the backbone of the current Chinese sports consumer market. In the hands of young people, the disposable gold in the hands of the youth has grown substantially; and because of the new concept of life, the concept of youth consumption and its opening up, the consumption power of this group is very strong, and it is one of the markets that any business now desires and must grasp. Not only the young people, but middle-aged people, in their busy work, carry out moderate-intensity sports and keep their bodies healthy. This new way of life is also worth the sports brands to understand and pay attention to.
But celebrity endorsements may just look good. The report from consumer insight company Bromoda reminded that many KOLs (Key Opinion Leaders) can trigger social debates but fail to motivate consumers to buy products.
In this regard, Wang Hao believes that brand marketing is the expression of the basic facts and values ​​of products, and it is also a means of distinguishing their brands from other brands in terms of characteristics, values, and attributes. It is the relevant association of the consumers about the product, and ultimately determines whether the average consumer will become a loyal customer. He said that sports brands should always improve the professional attributes of their sports, to meet the needs of consumers' movements, enhance the performance of consumers' movements, and improve the function and technology of products at the sport level. In the actual promotion, the promotion of the practical performance of the product should be increased and it should be differentiated from the sports and leisure brand differentiation.
Rethinking the breakthrough of domestic mobile phone: Xiaomi relied on high configuration and low prices, while adopting Internet sales, viral marketing and other strategies quickly rose to the hottest domestic mobile phone brand; VIVO, OPPO by virtue of full of beauty of the appearance of mobile phones, high-quality camera features The main music player feature is popular with young people and continues to gain popularity through invitations to popular idol endorsements and titles, and Huawei is relying on high-quality mobile phone configurations, outstanding user experience, and ultra-high quality. The cost performance goes abroad.
The huge Chinese market has very imaginative room for growth. No company can meet the needs of all consumers. To identify their respective strengths and strengths, domestically-made sports brands that fight to fight may also be able to achieve counter-attacks from ordinary to superior as domestic mobile phones.
Source: Interface