Facing The Rise Of Sports And Leisure, We Should Explore The Way To Upgrade The Brand Of Sports Apparel In China.

Consumer reports released in 2016 indicate that Chinese consumers are becoming a force influencing the world.

After interviews with 10 thousand 18-65 year old consumers in 44 cities in China, they found that Chinese consumers are very picky about where to spend their money, and the fast growing market will come to an end at a low price.

More and more consumers are interested in personalized products that can make life a little better. The awakening of this quality demand will lead to the birth of a new wave of consumer brands.

According to our website, the investment opportunities in consumer goods mainly depend on category upgrading and brand upgrading.

In the last issue of the report, will there be the next Starbucks in the tea making industry?

It is a mature category. Under the trend of consumption upgrading, the existing brands are facing challenges such as localization, solidification, homogenization, and so on.

The development and change of the sports market in the United States for 200 years has proved that with the new demand brought by the upgrading of consumption, the mature sports apparel industry has always had the possibility of reshuffling the brand new sports goods brand Nike, Under Amour, Skechers and Lululemon, which was founded after the 1970 years. It once broke through the rule of the old iron triangle Adidas, Puma and Tiger, and won its own market position.

Since 1970, the per capita GDP of the United States has exceeded 5000 dollars, and has entered a rapid growth period of more than 10 years of recreational and sports expenditure.

During the same period, jogging swept the United States and quickly promoted the sales of sports consumer goods such as running shoes.

Correspondingly, in 2011, China's per capita GDP reached 5000 US dollars, running fitness became the trend, sporting goods consumption capacity and willingness are constantly improving.

This means that the sportswear industry has ushered in new opportunities.

Feng Shui capital believes that sportswear brands with clear market positioning, significant product differentiation, vertical subdivision and scene will have the chance to win in this round of competition.

Over the past ten years, what changes have taken place in Chinese consumers?

Consumer products: gradually upgrading from mass products to high-end products.

Consumption mode: the penetration of e-commerce is getting higher and higher, and the gap of user satisfaction between offline and online channels is shrinking.

Consumption trends:

Brand loyalty is improving: more and more consumers begin to focus only on a few brands that fit themselves.

Advocate a healthy lifestyle: pay attention to healthy diet, actively participate in sports fitness, and buy sports products;

The consumption demand of family is rising.

Outbound travel is more popular: in 2015, the number of outbound tourists in China exceeded 70 million, averaging 1.5 times per person.

Sporting goods is a growing 100 billion market.

1, the sports industry will enter the stage of rapid development in the next 5-10 years.

According to the statistics released by the State General Administration of sports, the added value of sports industry in 2015 is about 400 billion, and the annual compound growth rate will reach 28.7% according to the plan.

It is estimated that by the year 2016-2020, the growth rate of sports industry will be 2 trillion and 600 billion and the annual compound growth rate will reach 49.62%.

In 2020, the total scale of sports industry will exceed 3 trillion yuan, and the proportion of GDP will reach 1%.

In 2025, the target value of the sports industry scale of 31 provinces (autonomous regions and municipalities) will exceed 7 trillion yuan. According to this figure, the annual compound growth rate will reach 33.14%.

2, sporting goods is a continuous growth of 100 billion market.

Statistics show that: in 2014, the scale of sports goods industry in China was close to 150 billion, and it was expected to reach 1800 trillion yuan by 2019, and the annual average compound growth rate of GAGR (Gross Annual Growth Rate) was about 5% in the 2014-2019 years, and 2019 in 2019.

The market size of the two categories is expected to be 103 billion 200 million and 19 billion 600 million respectively.

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3, the consumption intention and consumption ability of sports population are improving.

In 2015, China's per capita GDP has reached nearly 8000 US dollars, and the consumption capacity and willingness of sports goods are constantly improving.

The release of the 2015 China Sports crowd research report shows that: compared with non sports population, China's sports population has the characteristics of high education, high position and high income. The monthly income of families is 10699 yuan, which is 36 percentage points higher than that of non sports population.

4, the demand for specialized sports equipment is growing.

Zhang Hongwen, general manager of New Balance, said: "foreign experience shows that when GDP per capita exceeds 15 thousand dollars, jogging will become popular."

New Balance has caught up with the Chinese running trend. From 2012 to 2014, the annual sales volume of the US brand in mainland China increased to 3 digits, and the number of stores in China increased from 301 to more than 1600 in 2014.

In recent years, the number of people participating in sports fitness has increased, and people's demand for sports equipment has become more sophisticated and professional.

5, sportswear is still growing.

2015, China

It has reached 2 trillion yuan scale, compared with outdoor, home textiles, business and leisure industries in the early growth stage, as well as formal clothing, women's shoes and other mature industries, sports apparel in China is still in its growth stage.

Opportunities for emerging market segments are clear, such as jogging, ball games and outdoor segments.

In addition, the awareness of women's health movement awareness shows certain market potential.

What has happened in the sports market in the United States in the past 200 years?

As the largest sports consumption market in the world, the United States has gone through 200 years of changes in the sports industry.

This is of great reference value to the Chinese market, which has gone through the 2012 year old sports brand industry to start the reshuffle of the winter market.

The sports industry originated in Europe.

On the basis of European sports industry, the United States has concentrated resources on R & D of high value-added products through product development, technological innovation and the global industrial chain subcontracting mode.

In the 1811 year of the year, the first sporting goods business in the United States was born: Tyler Company.

By the middle and late nineteenth Century, the United States became a labour intensive world shoe factory.

At present, the output value of sports industry in the United States has exceeded about 90000000000 dollars.

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The rise of the sports industry in the United States was in 1970s.

Since 1970, the per capita GDP of the United States has exceeded 5000 dollars, and has entered a rapid growth period of more than 10 years in terms of leisure and entertainment expenditure. The annual growth rate is 10-15%.

With the rapid development of economy, the middle class of the United States is gradually expanding. They are eager for a more quality and healthier way of life.

Therefore, jogging has gradually become popular in the United States, thus rapidly driving the sales of sports shoes such as running shoes.

By the end of 70s, the number of people taking part in jogging reached 2500-3000, accounting for 15% of the US population at that time.

At the same time, the marathon race gradually increased, and the mass participation in the marathon rapidly expanded.

Sports have penetrated into everyday life of Americans and made the American sports industry enter a fast track.

Corresponding to this is: in 2011, China's per capita GDP reached 5000 US dollars, and domestic running fitness tide is rising.

Before the 1970s, sports shoes in the US market were mainly used for professional track and field sports, and overseas brands accounted for more than 60% of the total. Among them, Adidas, Puma and Tiger accounted for the dominant position in the iron triangle.

At that time, Adidas was the dominant player in global sports shoes, with annual sales of nearly $1 billion.

The trend of mass movement after 1970s was ignored by high-end brands such as Adidas, etc.

Contrary to Adidas, Nike was founded in 1972.

Based on the accurate judgement of sports market trend at that time, Nike launched running shoes suitable for the masses.

In the 1980 year of the year, sales of Nike running shoes reached US $100 million, with a market share of 50%.

Consumers' demand for sports equipment is becoming more and more personalized and professional.

Despite the fact that Adidas, Nike and other mass sports brands have laid the status of the giant in the United States, they still need to face dramatic changes in the sporting goods market in North America in the past 20 years.

In 1996, Under Armour entered the sporting goods market as a breakthrough with tights as its breakthrough. In 2015, Under Armour had surpassed Adidas and became the second largest sports brand in the United States.

Founded in 1992, Skechers was the first small brand to produce men's tooling boots. It was listed in 1999 and is now the second largest footwear brand in the United States.

Founded in 1998, Lululemon's Yoga costume is popular among female consumers and has gradually become the largest manufacturer of yoga clothing in North America.

As of 2014, Lululemon sales revenue was nearly US $2 billion.

Case analysis 1:Under Armour

Under Armour started late in the US market. It was founded in 1996, and initially produced high-performance sports suits for sportsmen.

As of 2014, the sales revenue of Under Armour reached US $3 billion 80 million, with a net profit of US $210 million.

Since its listing in 2005, income and net profit GAGR (compound annual growth rate) are all above 30%.

In 2015, Under Armour exceeded Adidas to become the second largest sports brand in the United States.

The founder of Under Armour, Kevin Plank, was once the captain of the University of Maryland football team. He was not satisfied with the sweat absorption performance of cotton clothing during training, and he could not find a training suit for fast drying.

This inspired him to start looking for a clothing material that could absorb sweat and sweat quickly, and eventually create a sporting goods brand that could enhance athletes' performance.

Subsequently, the tights made by Under Armour were spread over the National Football League (NFL) because of their comfort and breathability.

Immediately after that, Under Armour developed a pair of court spikes for football players.

Tight clothing with high sweat and sweat perspiration helps Under Armour form a competitive barrier.

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The main product of Under Armour is tight fitting sportswear.

In 2014, the proportion of skinny sportswear in Under Armour accounted for 74%, accounting for 80% of the market share of the functional sports wear market in the United States.

Under Armour products have made differentiated products by absorbing sweat and polyester, and have become the targets of other brands.

In addition, Under Armour's sports products gradually expand to sports shoes, sunglasses and other sports equipment.

In the layout of Internet technology applications, Under Armour also walks in front of other sports brands.

In 2013, Under Armour acquired fitness application software MapMyFitness.

In 2015, Under Armour acquired health and nutrition tracking application My Fitness Pal and social sports tracking software Endomondo, and cut into the online health community and wearable domain.

At present, Under Armour has launched the user platform Under Armour Record, which is benchmarked with Nike+, to build a digital sports platform.

Under Armour can rise rapidly in the US market, which has been carved up by several big tycoons.

1, find a small breakthrough and establish barriers to market segmentation.

Under Armour, which relies on sport tights and rugby protective gear, first occupied a smaller share of the market.

Such market segments have high technical barriers. Adidas and Nike, which are too long lines and cover too many sports types, are hard to shake.

2, specialized market positioning

With its core product tights as its core, Under Armour has identified two main groups of customers: professional athletes and diligent professional users.

The establishment of the core user group helps Under Armour expand to a wider user base: public users also have the desire to become professional users, so they are easily influenced by the recommendation of their more professional athletes.

3, rely on star effect and word of mouth communication to accumulate loyal users.

As the world's first sports power, the United States not only attaches importance to professional training, but also cares about the impact of sports products' technical functions on athletes.

Take the Under Armour bio measurement of tight sweater for example, it can monitor and instantly pmit data such as heartbeat, gravity and so on, allowing experts to do data analysis.

Thanks to its perfect high-tech performance, Under Armour has long been popular among many sports stars. Phelps and NBA star are their brand spokesmen.

With strong star influence, Under Armour further penetrates its products to other target consumer groups and expands its influence among young people in the United States, especially among college students.

In addition, the gymnasium has also become the Under Armour product coverage rate extremely high place, with the word of mouth effect, its user scale expands unceasingly.

Viewpoint

The opportunity for latecomer brands lies in finding small breakthroughs and building barriers to market segmentation.

The use of brand expertise and industry resources to maintain product R & D capabilities, with the star effect to promote products, accumulate word of mouth.

Case study 2:Lululemon

Lululemon was founded in 1998 and opened its first store in Vancouver in 2000.

Under the wave of sports and leisure, Lululemon yoga clothing is popular among female consumers and has gradually become the largest in North America.

Manufacturer.

As of 2014, Lululemon's sales revenue was nearly $2 billion, and the compound growth rate in the past 10 years was about 40%.

In terms of channels, as of 2014, Lululemon has 302 direct outlets, and in the past few years it has been expanding by 40-50 new stores per year.

In the company's revenue structure, the income from direct channel accounts for 75%. In addition, direct marketing revenue accounts for 18% through telephone, e-mail and official website, and 7% of wholesale / wholesale revenue.

The rapid rise of Lululemon in early years is related to the trend of yoga in early twenty-first Century.

In 2008, there were 14 million people practicing yoga in the United States, an increase of 136% compared to 2000.

In Canada, the number of yoga centers has exceeded that of the gym.

Lululemon has become the beneficiary of the rise of sports leisure industry.

But with the running of outdoor sports such as running back to the mainstream, the Yoga craze is gradually fading away.

In 2013, the participation rate of Yoga increased by only 4.5% over the same period last year, but compared to that, the sales of yoga clothing increased by 45%.

Under the new trend of sports and leisure, more and more consumers wear yoga clothes in daily life, but they do not necessarily participate in yoga.

Under the trend of sports and leisure, yoga clothes gradually become people's daily wear.

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From the perspective of the development of Lululemon, its success can be summed up in two aspects:

1. Focus on the vertical market of yoga clothing.

By holding all kinds of free yoga, Prat Ti and SALSA dance exercise classes, and popularizing the concept and method of health campaign, many female fans were gained in a short time.

2. It is one of the biggest fashion innovators in the US apparel market in the past 10 years.

Close fitting, comfortable, stylish and thin is the most outstanding feature of its products.

The product has rich application scenarios: yoga, fitness, daily life can be used, unique and accurate market positioning.

viewpoint

Sports brands should seize the trend of sports and leisure and create more abundant products: they can not only be worn in sports, but also can be used as a daily fashion.

Consumers are tired of homogenization, and demand is even more subdivided.

To seize the needs of the vertical population, we can fill the market gap.

There are lessons learned from the development of Lululemon: the user community is relatively single, and the effect of expanding to the male user market is not satisfactory.

The status quo of sports goods in China: a new round of reshuffle is taking place after the cold winter.

Since 1990, a large number of sports brands have appeared in China.

According to statistics, the number of brands in sports industry has reached more than 4000 at the peak, and the brand influence and scale are uneven.

After 2008 years in the capital market listing boom, gradually set up Anta, Lining, 361 degrees, XTEP, PEAK and other major sports brands in the leading position.

Part of the lack of brand competitiveness and terminal control of small and medium-sized brands gradually fade out of the market, such as double star, Deng Ya Ping, gold lake, alligator and other brands.

Before and after the 2008 Olympic Games, local brands landed in the capital market, and brand influence reached its peak.

Due to the rapid increase in penetration of sports products, the declining demand power and the imbalance between supply and demand in the industry, China's sporting goods market began to enter the cold winter from 2012. Large-scale closures of stores and storage have become the norm of the industry. Anta, Lining, XTEP and other local brands have experienced a sharp decline in the number of stores and declining performance.

The 2011-2012 year has become the watershed for the new round of shuffling of sports brand.

Before that, the domestic sporting goods market was mainly divided into two parts: high-end and middle and low end. The high-end market was firmly occupied by Nike and Adidas, with high quality and high price as the typical characteristics. Local sports brands occupied the low-end market, ploughed two or three lines and even smaller cities, and took the popular and low price route.

Before and after 2012, the domestic sports industry brand entered the adjustment period, which provided a breakthrough for the development of some international brands.

New Balance, Skechers, Asics and other international brands have quickly conquered a second tier young consumer group with functional and more fashionable and personalized products.

The judgement of China's sportswear Market

China's new sportswear brand, Particle Fever, has taken a ghost animal MV for new sports Bra.

In the high-end market, New Balance, Asics, Skechers and other brands have been outstanding in recent years, and Nike and Adidas have steadily increased their market share.

Channel expansion is an important engine for their growth. Nike and Adidas enter the three or four tier cities through a large number of factories and stores.

In the mass market, Anta surpassed Lining as the first brand of local sports.

Over the past two years, the market share of Lining, PEAK, XTEP, 361 degrees, China Trends and other brands has been shrinking.

Anta signed a massive exposure to the brand by signing Kong Linghui and putting it into CCTV advertising. It cost tens of millions to build the first high-tech sports science laboratory in China to accelerate product research and development, and cooperate with CBA, NBA, Olympic Committee and other institutions to promote brand upgrading, and take the lead in completing the pformation from brand wholesale to brand retail.

The sports lifestyle of consumers has changed significantly with the upgrading of consumption, and has moved towards the mature sports market.

The typical feature is that the demand for professional sports products based on functionality is increasing gradually, paying more attention to product quality and personalized needs of different scenes.

This has inspired local brands to innovate in products.

In the past, the main leisure brands of major sports brands were not obvious. Brand homogenization is the main challenge for mature sporting goods.

viewpoint

Sports brand investment summary:

The consumer gradually developed the fitness habit, and the demand for sports equipment continued to increase.

The consumer company has to control two key points: supply chain and channel;

When the sports market enters the stage of consumption upgrading, consumers are more inclined to choose sports clothes with precise brand positioning, distinct brand attributes, and can express their attitudes towards life and match various consumer scenarios.

Products with no brand personality have entered the bottleneck stage.

Market positioning is clear, product differentiation is significant, more vertical subdivision, more scenario brand will have the chance to win in this brand war.