National Fitness Tropical Sports Market Warmer, Market Segmentation Is Obvious, Industry Concentration Is Strengthened.

Anta, Lining and other sports brands are gradually recovering. Market segmentation is the industry trend.

This is the brand at this time of year.

During the shooting season, the sales counters of major shopping malls are playing discount promotions.

The discount rate of Gap, Zara, H&M, Giordano and other brands is as high as 50 percent off and 40 percent off, but the difference is that the sports brand headed by Anta and Lining is extraordinarily quiet.

Behind the silence of these former discounts, the sports market has begun to recover.

What is the reason for these sports brands to get rid of selling winter? Is this recovery sustainable? Where is the future of sports brands?

Full recovery

Data show that in the second quarter, XTEP's same store sales increased by a high number of units (5%-9%), while the previous quarter growth was in the number of units (around 5%), and its sales performance has improved significantly.

In 2015, the sports brands headed by Anta, Lining, 31st degree, PEAK and so on had many expectations for the domestic sports market.

For Lining, 2015 will be the first year of redevelopment, and for PEAK, the new round of growth cycle has begun.

Anta, the first in the industry, set itself a sales target of ten billion in 2015, trying to widen the gap with other brands.

Now, six months later, what are the development of these sports brands and whether they can achieve their sales targets?

In July 8th, XTEP International announced its second quarter results.

Data show that in the second quarter, XTEP's same store sales increased by a high number of units (5%-9%), while the previous quarter growth was in the number of units (around 5%), and its sales performance has improved significantly.

In addition to XTEP, Anta, Lining, 31st degree and PEAK, which reported quarterly results, have achieved same store sales growth in the first quarter of this year, and their orders have also increased to varying degrees.

Although some brands will still be related to store phenomenon, these brands are generally optimistic about this year's development.

"The expectation for future performance is just like our earnings report, it should be said within the scope of the plan," Han Ye, director of public relations, said in an interview with reporters.

In the first quarter of this year, the financial report showed that the sales of 31% could increase by 6.3% compared with the same store, and it is expected that the same year will continue to grow at the same speed.

PEAK responsible person also said, "as the annual report said, the performance rebound is our operation goal.

From the 7 consecutive quarter of PEAK's orders growth, we have a relatively optimistic attitude towards this goal.

From the reaction of the market, all sports brands are optimistic about the market this year, and there are some reasons for it. Their inventory problems have finally been solved.

At the Wangfujing Street store in Lining, Beijing, the reporter saw that except for a few products labeled with "30 percent off", most of the products were marked "new products listed" without any discount. This phenomenon appeared somewhat abrupt in the brand discount season.

The shop assistant told reporters that the old section had already been sold off. At present, the shop mainly sells new products. Only some women's shoes will have 7 or 20 percent off discount because of broken codes.

It is understood that, according to the inventory optimization strategy, Lining will sell unmarketable products off the shelves to discount stores, and sell shelf space to sell products at the price stores.

As an early brand out of the quagmire, Anta has become the leading sport market in China at present, and its inventory has also been maintained at a healthy level.

According to the shop clerk of Anta Wangfujing factory in Beijing, the sales are all new this year. "Previous inventory has been sold in previous promotional activities, so there will be no sale of the old money a few years ago.

Now most of the products are discounted in season, such as spring sales in summer.

In the store, the reporter saw each pair.

The quantity of stock is quantified.

When a reporter asked about a broken shoe, the clerk said, "it's very difficult to replenish the old ones, probably not elsewhere."

And in the brand shops such as 331 degrees, Hongxing Erke, the reporters observed that although these brands appeared in the discount situation, they still remained within the normal range.

Taking 360 degrees as an example, its clothing has been offered a "30 percent off, two, 40 percent off," discount. The discount is attractive, but its sports shoes are mostly new products, and there are not many discount styles.

Sports boom

Nowadays, more and more people choose to run and ride bicycles and so on.

So, yes.

The demand has increased, which has made great progress in product sales and the whole market.

Han Ye also said that the sports brand market did "get warmer", and she attributed the reason for its rebound to national support and the national fitness craze.

She said: "with the state's attention to sports, especially football, the whole sports industry is once again valued.

At the same time, people's awareness of national fitness is also improving, and the demand for sports goods is also increasing.

Prior to this, the State Council issued the "State Council on accelerating the development of sports industry to promote sports consumption in a number of opinions" (hereinafter referred to as the "opinion"), by 2025, the total scale of sports industry in China should exceed 5 trillion yuan, and the number of people who regularly participate in physical training will reach 500 million.

According to the size and number of sports industry planned by the state, sports shoes and clothing industry, as a sports derivative, will also have broad market development space in the future.

As we all know, the United States has a relatively mature and mature sports industry structure, and its sports equipment and clothing sales account for 12% of the total industry.

According to this figure, the total market of sports equipment and sports shoes and clothing in China will exceed 600 billion in 2025.

Correspondingly, as the number one sports brand in China, Anta's revenue in 2014 was still only ten billion.

Thus, under the macro background of government support, sports brand has broad room for growth.

On the other hand, with the change of life concept, the trend of sports fitness in China has stimulated the demand for professional sports shoes and clothing in the whole market.

Taking the marathon as an example, data from the China Athletic Association show that in 2014, 51 marathons and related sports events were held in China. The number of participants was over 900 thousand, and the total number of participants in the whole and half marathon projects exceeded 260 thousand, a record high.

Now, more and more people choose to run long distances and ride bicycles.

Therefore, the demand for sports shoes and clothing has increased, which is good for product sales and the whole market. "

Han Ye explained.

Zhang Qingye, the sports brand expert and founder of the key road sports consulting company, believes that the sports lifestyle of our residents has made progress from developing countries to developed countries, and promoted the steady development of the sports brand market.

He said that with the rise of running fitness in China and the increase in demand for professional sports products, the consumption of sports products in China is also increasing.

In addition, Beijing and Zhangjiakou jointly bid for the Winter Olympics will be announced in July 31st.

"Before and after the Winter Olympic Games announcement, the demand for national fitness will continue to grow," Han Ye said.

Sports brand is closely related to sports events. In these sports brands, every big event can bring a lot of room for development.

Prior to this, the 2008 Olympic Games held a great leap forward development of a number of sports brands.

Han Ye believes that the 360 degree as a partner will achieve breakthrough growth next year before and after the Rio Olympics.

Market segmentation

In some market segments, including outdoor sports and extreme sports, China's local brands are doing a series of attempts, such as mergers and acquisitions overseas, which are small but distinctive and have specialties in the field of professional segmentation.

Sports apparel brands have generally started to pick up after a low sale, but their climbing progress is different.

Among these brands, Anta took the lead in getting out of the shadow of the industry downturn, becoming the leading brand of sports shoes and clothing in China, and formulated the sales target of breaking tens of billions of revenue in 2015.

Lining, who ranks second in the industry, earned 6 billion 728 million yuan in 2014 and less than 5 billion yuan in other brands.

If Anta's billion goals can be achieved, it will further widen the gap with the latecomers, ahead of other competitors in the industry.

At the same time, the growth rate of Anta is also very impressive. According to the recently published order data of various brands, the order volume of Anta in the four quarter of this year has achieved a low double-digit (10%-20%) growth rate, which is higher in the industry.

Zhang Qing believes that with the overall warming of the Chinese market, sports brands will also grow, but several brands with obvious brand personality and professional foundation will have larger growth space, and the situation of strong Yu Qiang and the weak will be eliminated. The concentration of the whole industry will be further strengthened.

In its 2014 annual report, PEAK said, "the competition pattern of the industry tends to be rational, and the market concentration degree shows that the structural adjustment of the industry in the past few years is coming to an end."

Some experts predict that after the structural adjustment of the industry, the future movement.

Some brands may disappear, leaving room for the dominant brand.

After adjustment, many sports brands began to compete in the market segments.

PEAK has declared that this year, under the background of new urbanization and domestic demand economic growth, with the help of the national East-West fitness strategy, we will further cut into all popular and emerging market segments to achieve substantial growth.

According to Zhang Qing analysis, in some market segments, including outdoor and extreme sports, China's local brands are doing a series of attempts, such as mergers and acquisitions overseas, which are small but distinctive, and specialize in the field of professional segmentation.

In the future, market segmentation is likely to grow some of the eldest players to divide the market share of the integrated brand.

In addition, in the context of the national sports industry development and the emergence of various sports professional sports, sports brands will also step forward to specialization.

As China's brands are beginning to move closer to professional sports brands, sports brands are also competing for sports resources, namely sports events, sports teams and athletes.

Zhang Qing believes that sports brand has a certain dependence on the demand for sports resources, especially the demand for high-end resources.

For example, 321 degree is aimed at sports events. For this reason, Han Ye explained that since the 31st degree has always been the most professional sports brand, starting from the 2010 Asian Games in Guangzhou, followed by the Shenzhen Universiade and Nanjing Youth Olympic Games, including last year's Inchon Asian Games, next year's Rio Olympic Games, the 31st degree has not interrupted the cooperation with the competition events.

At present, there is more and more investment in the competition. This is the main line of the 31st degree, and will continue along this road in the future.