Prior to the development of local sports brand in second and third tier cities in the country has been smooth sailing , but recently , it is experiencing international brands squeezed. Recently, including 361 °, elegant birds and other brands all express and international brands confrontation “stress multiplier ” in its 2013 earnings report . Industry experts believe that it is undeniable , there are strong international brand and other brands a competitive advantage , but local brands can still find opportunities to increase the product cost .
January this year, just in the Shanghai Stock Exchange and elegant birds listed in its 2013 earnings report exposes the company and some local brands , in the second , third and fourth tier cities especially sports shoes and apparel market advantage , “but with the recent well-known foreign brands will business expanded from first-tier cities to second and third tier cities, competition in the domestic market increasingly fierce sports shoes and apparel . ”
Coincidentally , 361 ° have similar statements. “With the expansion of large foreign brands from the first-tier cities to second and third tier cities in China , the domestic sportswear market competition has become increasingly fierce. Moreover , China’s economic slowdown led to a drop in demand , such as excess industry supply and inventory problems are still too high in 2013 in most of the drag on the development of the industry . ”
It was under a lot of pressure shocks and other international brands , local brands of these two poor performance last year , 361 ° turnover decreased by 27.6% to 3.583 billion yuan . Guirenniao sales revenue 2.406 billion yuan , down 15.74% ; net profit of 423 million yuan , down 19.79% .
Indeed, the international big names who had shouted into the second and third tier cities in China slogans . In 2010, a securities company analysis report, the domestic market has become saturated first-tier cities , the future market is mainly concentrated in the second and third tier cities, in this context, to maintain a high growth rate and strong market competitiveness of international brands start overweight potential market . Although the price advantage, but the lack of competitiveness of local brand sporting goods companies therefore face pressure can be imagined. When talking about the risk of elegant birds may face in its first earnings report mentions , their respective sports shoes and apparel industry in China and worldwide more intense competition , both competitors including Nike , Adidas and other foreign brands , including Anta domestic brands.
Investment Advisor in the light researcher Zhu Qing Hua believes that the international big-name competition , local sports brand in addition to poor brand power , the disadvantage is also reflected in the design of innovation is not strong, the lower level of personalized style ; still a certain gap in the quality, which with international brands and local brands have a greater market orientation relationship ; channel expansion capability is difficult to compete with international brands.
Even so , the future of local brands is not pessimistic. Zhu Qing Hua analysis, international brands in the second and third tier cities killer is only a low discount , and they are generally older was conducted for discounts , so if the local brand new degree of innovation to enhance its strength in the second and third tier markets to compete with international brands .
