China'S Sports Industry: Segmenting The Market And Entering The Era Of "Non Mainstream"

The China outdoor products market 2014 annual survey report released by China Textile Association outdoor products branch shows that at present, more and more people take part in outdoor activities in China, especially in the context of vehicle popularization, outdoor activities are more colorful.

Running, skiing, cycling, water projects, air projects and other special activities have begun to expand from a small scale, and more and more enthusiasts have joined in, especially under the elitist "halo" effect, which has begun to produce signs of new fashion and high-end popularity.

In view of this situation, Guo Fanli, director and director of research at CIC, believes that with the change of people's sports preferences and the improvement of material level, some sports categories which are rather non mainstream in the past are expected to become mainstream products in the future.

"Skiing, outdoor sports and other sub fields should pay attention to the development of the whole industry chain. Equipment, clothing, training, competitions and other links are worth digging deeply, while paying attention to the dissemination of sports challenge spirit."

Guo Fanli suggested.

In the past time, the development of sports industry is relatively slow. "This is mainly due to the fact that the sports industry is not marketization and the color of administrative monopoly is strong.

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Under the circumstances, the rent-seeking space is larger and the fraud is serious, which is not conducive to the healthy development of the sports industry.

And as the state attaches importance to the sports industry, and

With the expansion of demand, the government is reforming the sports industry, and the sports industry will soon develop in an all-round way.

Guo Fanli said.

The optimism and the warming of the industry policy have already produced some incentives at the capital level.

Public information shows that some listed companies have adopted the establishment of sports industry fund and other means to cut into more sports subdivision areas.

In this regard, Guo Fanli believes that if we take advantage of the capital market in the future, we can introduce venture capital on the one hand, and the enterprises in these non mainstream sports sub sectors will have smaller scale and lower level of development. Venture capital can provide financial support for them, and at the same time, it can improve its management system. The introduction of VC is the key step of its listing. On the other hand, we should make full use of the bond market and issue bonds abroad.

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Recently, the German fashion brand Hugo Boss released a report on the fourth quarter of fiscal year 2014. The results showed that the demand for high-end clothing declined due to the stagnation of the European economy as a whole. Sales of Hugo Boss increased 5% in the fourth quarter to 684 million euros (4 billion 888 million yuan), but failed to reach the 699 million 400 thousand euro (about 4 billion 998 million yuan) that analysts had expected.

Net profit increased by 6% to 167 million euros (1 billion 193 million yuan), which is also lower than the 172 million 800 thousand euros (1 billion 235 million yuan) estimated by analysts before.

The few bright spots in the earnings report came from the women's clothing series designed by Jason Wu, a Chinese American designer.

In 2014, Hugo Boss invited the American first lady's designer to run the women's costume design team.

Last November, when the company announced its third quarter earnings report, it said that the first women's clothing series designed by Jason Wu has been far ahead of expectations since it was launched in July. Wholesale buyers have also given positive feedback to its 2015 spring and summer series, which is undoubtedly good news for the brand's overall sales growth in the next few years.

For men's wear, women's clothing and women's accessories have become the growth point that brands try to excavate in recent years, and designers' Asian faces may be a selling point.

In order to remedy Europe's slowing down demand for high-end fashion, Hugo Boss is not only an Asian creative designer for women's clothing, but also CEO Claus-Dietrich Lahrs, Hugo Boss is opening more new stores in Asia and the Middle East and is ready to reclaim dealership in China and South Korea.

"Our global growth strategy is to expand brand influence and manage retail channels ourselves."

Lahrs added that "reclaiming the distribution rights of the two countries means further strengthening the layout of these key markets."

From March 1st this year, Hugo Bosss will recover 17 authorized stores in South Korea.

At the same time, China's 130 Hugo Boss stores will also be returned to the company.

This will make Hugo Bosss a step closer to the goal -- enhancing brand awareness and full channel pformation, including the third party platform for e-commerce.

In January of this year, Hugo Boss began working with Jingdong, an e-commerce platform in China.

Hugo Boss does not enter Jingdong in the form of a flagship flagship store. Instead, Jingdong buys four series of nearly 10000 items in wholesale form to Hugo Boss and sells online.

"The sale price of Hugo Boss is generally up to or even below the half off price of the entity store. This price is not reached after the overseas purchasing plus tax payment point."

Jingdong public relations wrote in an email interview to reply to the interface news.

Before Jingdong, in September 2014, Hugo Boss's Boss and Boss Orange brands had entered the brand flagship store.

Then in November, its Boss Orange opened its official flagship store in Tmall.

As a matter of fact, there are very few examples of luxury brands' sales in China's third party e-commerce platform, let alone more than third platforms.

"Hugo Boss is a luxury brand for consumers, but its practical marketing strategy is a fashion brand strategy.

As long as we can ensure the quality of service, it is not a problem to sell through the third party or through the electricity supplier.

But the indirect marketing mode is another thing.

Vincent Bastien, a senior manager of the luxury goods industry, said to the interface journalist.

However, in the short term, it is unlikely that Hugo Boss will improve its performance significantly because of its strategy in Asia and the Middle East.

According to the Hugo Boss2014 annual report, Asia accounts for only 13% of the total Hugo Boss sales.

Not long ago, Goldman Sachs also lowered its growth expectations for Hugo Boss and recommended that customers sell Hugo Boss shares.

Hugo Boss's former holding European private equity fund Permira Holdings Ltd. also held its third reduction in December last year.

The European market is not revival, and the role of Asian markets can not be immediate. As CEO Claus-Dietrich Lahrs said, "in the light of economic and political uncertainties, 2015 will not be easy."