Sports brand giants in the Chinese market women consumer groups to compete for the target
NIKE, the leading us sportswear brand, recently released its fourth-quarter and full-year fiscal 2018 earnings. The results showed that Nike's revenue in the fourth quarter of fiscal 2018 was $9.789 billion, up 12.82 percent year-on-year. Earnings of $1.137bn, up 12.8 per cent year on year. Revenue from greater China surpassed $5 billion for the first time, to $5.34 billion. With the exception of Nike, all major sports brand giants have maintained a great focus on the Chinese market while paying more attention to the female market.
The Chinese market has become a battleground for sports giants
SKECHERS, also an American sports brand, is second only to Nike in market share in the United States. In June, skechers China first published its report card of 10 years of development in China. From 2008 to 2017, skechers' total retail sales in China increased by an average of 73 percent annually, from 74 million yuan to 10.43 billion yuan. Chen weili, chief executive of skechers China, has told media that total retail sales in China are expected to exceed 15 billion yuan this year.
Adidas also values the Chinese market. Through combing through the annual reports of adidas, the reporter found that the sales in greater China increased by 28%~29% in 2016-2017, which surpassed that in North America and became the fastest growing market in the world for adidas. In march, adidas announced a new plan for the asia-pacific market, with Shanghai as the headquarters of the asia-pacific market, hoping to further win over consumers in the world's fastest growing consumer market with its new layout.
Guo hesheng, secretary general of the light industry enterprise management association, told China business daily that China's sports market is in an unprecedented golden period of development. As national income has risen, Chinese consumers have begun to pursue healthier lifestyles and become increasingly interested in fitness and sports. The Chinese government is even more supportive and regards it as an important driver of economic growth. The state council issued several opinions on accelerating the development of sports industry and promoting sports consumption, which set a development target of over 5 trillion yuan in total in 2025, meaning that the next decade will be a golden decade for the sports industry. "In addition, as far as sports brands are concerned, sports apparel is becoming fashionable, professional and customized at present, which is more advantageous for brands with design ability and professional technology to occupy the market." He said.
Under Armour, once America's second-largest sportswear brand by market value, has suffered a steady decline in recent years. The net loss widened to $30.2 million from $2.3 million in the same period last year, according to the company's 2018 quarterly report released recently. Industry insiders believe that under armour has less attention to the Chinese market than other sports brands. Due to its late entry into the Chinese market, under armour has missed the best development period. In the future, under armour needs to accelerate its offline store layout and expand its e-commerce business to gain a foothold in China.
The female market has become a new growth point
Besides paying attention to the Chinese market, under the background of "she economy", the major sports brands also take the female market as a new growth point. Nike launched its first sports bra made using Flyknit weaving technology in 2017, passing researchers' more than 600 hours of biological testing, dubbed the "new sports weapon to compete for female customers."
In addition, Nike has opened women's sportswear brand franchises pant studios and Nike Sneakers Boutique in its 5,000 stores, and sales at its pilot sneaker boutiques have grown by 30 to 50 percent.
Adidas also launched a new women's line of products for 2018. The new 2018 UltraBOOST X shoes, designed for women, are made of Primeknit, seamless knit fabric with an embedded support bar for different foot types. In addition, the running vest adopts Parley yarn for waterproof function. An adidas sales manager told the reporter that the new training clothing gives more attention to fashion while giving attention to functionality, combined with dazzling color and pattern design, reflecting the attention to women in design details.
Gao jiali, managing director of adidas Asia Pacific, told the media that in terms of consumer trends, the women's market will continue to grow rapidly, and the women category has been included in the segment retail strategy, providing a diversified portfolio of products and carrying out more marketing activities.
PUMA also values the women's market, with sales up 15 per cent year on year to 1.49bn and operating profit jumping 33 per cent to 58m in the second quarter of 2018. The industry believes puma has captured the rise of the female market, with female consumers making a big contribution to puma's sales. In its most recent annual report, puma named signing star rihanna as "responsible for the growth in sales of its women's products category," with rihanna's personal line contributing 7 percent to the company's growth rate.
Zhang ruiyan, vice President of marketing and store development of skechers China, has also said that skechers is creating a consumption space and scene aimed at women, so that young people can constantly explore and improve their consumption experience. In addition to its traditional product line, SKECHERS has set up a sports function division that develops SKECHERS GO Run running shoes and SKECHERS GO Walk walking shoes, as well as new high-tech running shoes for the women market.
A sports official told reporters that the full market size has yet to be established, and the trend of paying attention to the women's market is already very clear, and the competition in the women's sports market will get fiercer and fiercer. From stimulating physical potential to pursuing gender equality, the theme and selling point of the brand will be more and more targeted. He said: "for Chinese women's campaign propaganda, it is better not to borrow the aesthetic standards of Europe and the United States, emphasizing the muscular lines of bodybuilding. Breaking into the Chinese women's market requires more media publicity and star power, and the concept of moving up the sport to a trendy lifestyle.
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