Local Sports Brands Feel Pressure In The Two Or Three Tier Cities

< p > in January this year, the glek listed on the Shanghai Stock Exchange exposed itself in its 2013 earnings report. Some of the local brands such as the company, especially in the two or three and four tier sports shoes market, are particularly prominent. "But as the famous brands abroad have expanded their business from the first tier cities to the two or three tier cities in recent years, the competition in the domestic footwear market has become increasingly fierce."

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"P" is unique. There is a similar expression at 361 degree.

"As large foreign brands expand their business from China's first tier cities to two or three tier cities, competition in the domestic sports apparel market is becoming increasingly fierce.

In addition, China's economic slowdown has led to a decline in demand, oversupply of industries and excessive inventory, which is still dragging down the industry in most of 2013.

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< p > under the pressure of international brand shock and so on, the performance of the two a href= //www.sjfzxm.com/news/index_c.asp brands less than /a last year was poor, with a turnover of 361 to 27.6% yuan to 3 billion 583 million yuan.

The sales income of the birds was 2 billion 406 million yuan, down 15.74% compared to the same period last year. Net profit was 423 million yuan, down 19.79% compared with the same period last year.

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< p > in fact, < a href= "//www.sjfzxm.com/news/index_c.asp" > international famous brand < /a > have already shouted slogans to enter China's a href= //www.sjfzxm.com/news/index_c.asp > two or three line city < /a >.

In 2010, a securities company reported that the market of domestic first tier cities has been saturated. The future market is mainly concentrated in the two or three tier cities. Under this background, the international first-line brand with high growth rate and strong market competitiveness has begun to increase the potential market.

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< p > although there are price advantages, the pressure on local sporting goods enterprises lacking brand competitiveness can be imagined.

When you talk about possible risks, you may first mention that the sports footwear industry in China is more competitive in China and around the world. Competitors include foreign brands such as Nike and Adidas, including Anta and other domestic brands.

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< p > Zhu Qinghua, a researcher at CIC light industry, believes that in addition to the big international competition, local sports brands are not only strong in brand strength but also weak in design creativity and low in personalization. There is still a certain gap in quality, which is closely related to the market positioning of international brands and local brands, and the ability of channel expansion is difficult to compete with international brands.

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P, even so, the future of local brands is not pessimistic.

According to Zhu Qinghua analysis, the killer brand of international brands in the two or three tier cities is only a low discount, and they generally discount sales for the old ones, so if the new brand innovation of local brands is improved, they will have the strength to compete with the international brands in the two or three line market.

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