Transformation Of Sporting Goods Retail Channels: From Retail To Monopoly

China's sporting goods industry, which accounts for more than 65% of the world's capacity, is undergoing profound changes in its sales model.

The landmark event was the merger of the four major regional retail groups in Shenzhen in 2007, namely, dragon Ho, Sichuan's strong wave, Zhejiang's sharppower and Shenyang's PDA. They formed a leading sports joint stock company to fight against BELLE and Baocheng's two major sporting goods retail giants.

The industry has judged that in 2008, China's sporting goods retail channels will fundamentally change at the format level.

On the two sides of the west end of Beijing stadium, there are ten sporting goods stores, including international brands such as ADI, Nike and Spalding, as well as Anta, Hongxing Erke and other domestic brands.

Three years ago, on the two sides of the west side of the gymnasium, there were more sporting goods retail outlets. At that time, it was called a barometer of the sporting goods industry in China.

From retail stores to franchised stores is the result of the evolution of sports commodity industry channels, and the stadium road is a microcosm.

More brand enterprises will turn their products counters in big shopping malls into image shops and flagship stores in the business circle.

A sales director of a sports enterprise in Jinjiang told reporters that in the second tier market in 2007, the rental price of shops has been very high, and single stores are often 12 million yuan.

The most direct reason for this situation is that all brands invest at the expense of the channel.

He believes that enterprises are keen on exclusive stores, in addition to specializing in their own products, to ensure seamless product and market, as well as the role of image display, "in the gym, our store is to advertise."

While businesses are scrambled for sites to set up exclusive stores, the growing regional agents are also integrating their own channels to form chain retailers.

As a domestic regional hegemony, Shenzhen Long Hao, Sichuan Jin Lang, Zhejiang Shari and Shenyang Peng DA control the channel terminal in their area, with strong waves and sharp annual sales estimated at around 1 billion yuan.

In particular, sharp sports, founded in 1987, is the earliest authorized chain retailer of famous international sports brands such as Nike, Adidas and Reebok.

By the end of last year, there were more than 500 chain stores in nearly 10 provinces and cities, and the largest number of international sports brand retailers in East China, and only more than 70 in Shanghai alone.

It is precisely when we see the prevalence of the independent channels of enterprises that four enterprises decide to join the retail group in order to maintain the right to speak of sports products to the market terminals.

In fact, before that, BELLE's listing in Hongkong was a great shock to the sports goods providers.

BELLE, which is famous for its production of women's shoes, has quietly extended its tentacles to the sports industry. In just 3 years, its sport has opened its chain stores to 1000.

BELLE, a high-profile listed company, is not the only giant in the field of sporting goods retailing in China. Baoji group, a Taiwanese capital company, is more like a deep-sea whale.

Compared with Tao Bo sports, Baocheng's "interactive sports" has the same strength.

As Nike, Adidas, MIZUNO, Puma and other international well-known sports shoes brand manufacturers, has more than 100 production lines in the world, and controls the world-famous brand nearly 1/4 of sports shoes production, Baocheng, another line is sporting goods sales, at present, its chain stores reach 3500.

Some of the participants in sports did not want to be swallowed up by BELLE or Baocheng, so they took the strategy of jointly attacking and setting up a mountain top.

It is reported that the sales of leading sports in 2007 will exceed 2 billion yuan.

Today, Tao Po sports is already one of the largest distributors of Nike and Adidas in China. Its strong terminal capability is expected by many domestic sporting goods companies, and the expansion of channels after listing is just around the corner.

The importance of channel is not only known by the production enterprise, but also ordinary shareholders understand its value.

Acting KAPPA started Beijing sports, which was listed in Hongkong at the end of 2007. Its opening market value was close to HK $30 billion, which surpassed the listed Lining and Anta.

What does the emergence of retail giants mean for these sports manufacturing enterprises?

XTEP sales director Ye Shuangquan has intuitive experience.

In his view, sporting goods chain stores are becoming more and more important.

"Those retail giants are not around.

Now, we have cooperation with the top ten sporting goods retail companies in the country.

In the first tier market, domestic brand enterprises set up sports stores to display their image. For them, the two or three line market is the focus of their competition.

The industry believes that the emergence of these retail giants will destroy a large number of small agents, like Suning and Gumei when it comes to the impact of small household electrical appliances retailers.

For the domestic sports manufacturing enterprises, which are mainly concentrated in the two or three line market, the products will be more dependent on the retail giants. In the process of entering the market, the sports manufacturing enterprises will lose more discourse power.