How to realize the brand breakthrough date of local sports goods:2014-04-15 11:11
The development of local sporting goods companies has been a thing of the past decade. From the old companies such as Li Ning and Binxing to the later Jinjiang enterprises such as Anta, Peak, and Hongxing, the sales scale quickly broke through to 1 billion, 2 billion, and 3 billion. The development momentum is very strong, and there is a tendency to replace foreign brands. However, after ten years, the development of local sporting goods companies was slightly insufficient. Some companies began to show signs of slowing sales growth. Some serious companies also showed that sales costs increased year by year, inventory levels gradually increased, and operating profits declined year by year. And other issues. The reason for this is that the general consensus is: Now is the era of brand success. Consumers rely on brands to choose products. Local companies should upgrade their brands and change consumer perceptions. They think local brands are too terrible. In fact, local companies have realized this problem and have made a series of efforts. Of course, they still need to make greater efforts.
The success factors of local companies The growth of China's sporting goods market is very rapid. The scale and capacity of the primary, secondary, and tertiary markets have started to increase at about the same time. This gives domestic companies opportunities for development. Foreign companies such as Nike and Adidas entered China, first based on brand building rather than sales growth. Their strategy is to occupy the primary market first, use flagship stores as their bases, maintain high-end, high-quality, high-price positioning, focus on the younger generation of consumer groups, carry out various activities that are close to consumers, influence consumer purchasing concepts, and establish consumers. Brand awareness. Foreign brands have a long-term strategic plan, occupying the commanding heights of the brand first and diving into the second and third-tier markets. When foreign-funded enterprises cultivate brand awareness in the primary market, local Li Ning began to make efforts in the secondary market, and Anta and other Jinjiang enterprises began to exert their efforts in the tertiary market. These enterprises have developed rapidly in the market segments where they are based on the features of similar foreign-funded enterprises, good quality, more competitive prices, and strong thrusts of channels.
Different from foreign-funded enterprises, the early days of local companies' operations were not centered on brand building, but more on sales promotion and market occupation. The core marketing strategy was sales network construction. Anta is a typical example. Anta focuses on the development of the third and fourth-tier markets where foreign brands and domestic strong brands are relatively weak—especially the county-level market and the township-level market in developed regions. It adopts a county-one-channel arrangement to reduce the sales focus and deepen the regional market. In terms of its store construction strategy, Anta focused on guiding and forcing distributors to surpass all competitors in the number of terminals and terminals and become the first in the regional market. You don't want to open a store, you don't open a store, I'll open a store first; you have a store, I'll open two; you're a single store, I'll open a double-front store, or even a flagship store. In order to speed up the opening of the store, ANTA distinguishes itself from the practice of setting up direct branches throughout the country by other sporting goods companies at that time, and adopts provincial distribution agencies + regional franchised dealers to develop a nationwide sales network. Under the guidance of these sales network construction strategies, the number of terminal stores in a few short years has grown from a few hundred to thousands, and to a few thousand, rapidly occupying the third-tier market.
Efforts of Local Enterprises in Brand Breakthrough After foreign companies completed their brand building in the primary market, they began to expand their product lines and market coverage, and gradually entered the second and third-tier markets. Local companies, however, were unwilling to show weaknesses and made efforts to advance into the primary market. With the competition between the two major groups, with the increasing homogeneity of products and prices, the focus is naturally on the brand. The consumer culture of the sporting goods market has also entered the stage of fashion and experience. Consumers first make purchase decisions according to brands instead of functions or prices. It stems from the inherent weakness of local companies in brand understanding - it is also inevitable that local companies have started to rely on production rather than marketing, and our companies have adopted more imitation and follow-up strategies. However, this imitation basically stays at the formal level.
In fact, since the beginning of this century, the strategy of foreign-owned enterprises in brand building has undergone significant changes. They pay more attention to the study of consumer values ​​and understand the consumer's purchase and use experience. The principle of the time, American scholar Joseph. Pine and James. Gilmore's concept of experience economy put forward in 2002 has been elaborated and widely recognized. American scholars have revealed changes in consumer attitudes after the 21st century. Consumers are more concerned about internal experiences and are concerned about their participation in form, emotion, and knowledge, and their income. They are no longer external goods, services, or pure brands. Reputation. In such a consumer culture, companies must emphasize the brand building, surround the consumers, create activities and feelings that are worthy of consumers' memories, and gain consumers' psychological recognition. Foreign-funded enterprises have a deeper understanding of the experience economy and more emphasis on the information and emotional interaction process between brands and consumers in marketing strategies. Take Nike as an example. In terms of brand connotation, the concept of communication must embody the youth's culture and status symbol; in marketing activities, more emphasis is placed on event marketing in direct contact with consumers, such as more frequent star face-to-face activities, sponsorship of youth events, and national teams. Club sponsorship, etc.
The process of globalization has accelerated the opening of markets in various regions. The development of information technology has changed the way people communicate. Global cultural exchanges have accelerated the convergence and convergence of consumer culture. Especially since the beginning of this century, the cultural concept of emphasizing self and highlighting individuality as the carrier of sports and entertainment has increasingly become a global consumer culture. This process has accelerated the substitution of global brands for regional brands. In the field of sporting goods, this alternative is even more pronounced because the brand's connotation has increasingly shifted from emphasizing quality and function to emphasizing values ​​and individuality experiences. Li Ning recognized this earlier and began to try to move from local marketing to global marketing. Although Li Ning's sales are still based on the local market, more and more people are recruiting athletics and basketball stars with global influence as brand spokespersons. However, if a local company truly wants to grow into a global brand, it must enter the global market. On the one hand, it enters the developing country market to take up a place and gain scale growth, sharing the cost pressure on brand communication; on the other hand, it must enter the United States and In the European market, for a long period of time, the United States or Europe still has demonstration and radiation effects on other markets. Local companies trying to establish global brands must seize this commanding height. This kind of opportunity exists. In the process of moving towards an M-shaped society in the United States and Europe, the differentiation of consumers is an inevitable trend. A large number of low- and middle-income groups select brands on the basis of cost-effectiveness. Enterprises like Li Ning have Opportunity to enter the markets of developed countries, first establish the positioning of mid-range brands, and then launch an impact on the high-end market.
Li Ning is also clearly aware that today's brands are increasingly supporting specific products. The products in the sports field increasingly emphasize professionalism, emphasizing functional characteristics suitable for specific applications. Just as in the field of basketball shoes, Nike's brand has air cushion technology as a support, Li Ning in the development of running shoes in the process, emphasizing Li Ning bow technology support for the brand. For technological innovation in the field of sporting goods, local companies can fully borrow the research and development capabilities of international first-class design studios. The highly specialized global division of labor enables local companies to directly use the world's basic research and design. Li Ning is directly outsourcing technology research and development to the United States' first-rate design agencies.
Obstacles to the growth of local companies Although objectively speaking, local brands are still difficult to escape the taste of earth, but we still have to admit their efforts, and should continue to give applause and encouragement. Due to the huge gap in scale, the disadvantages of local companies will be further amplified under the marketing trend of branding and brand globalization. The brand of a foreign-funded company is piled up by a large amount of marketing expenses. Adidas needs only 1.3 billion RMB to win the Beijing Olympics sponsorship right, which is almost a year for many local companies, but he can sell through 10 billion US dollars a year. The amount will be shared by local companies. Challenging the global sporting goods hegemony is a very difficult thing. Fortunately, local companies have already thought of strategy - through the market segments, especially the fastest-growing market segments in the domestic market, to carry out surprise attacks. Li Ning has set foot in the field of track and field and basketball. Focus on the basketball field.
But this effort is not enough. The external marketing environment is constantly changing. To capture opportunities in a changing environment depends on marketing capabilities. On the other hand, if local companies want to change their imitative tactics, and completely get rid of the label, they also need to fundamentally solve the problem. It is necessary to establish its own marketing function that can compete with foreign-funded enterprises, especially the brand-based core marketing functions.
In the brand management department, with the increase in the size of local sporting goods companies, companies have divested the original planning department from the marketing center, established a so-called brand management center, and placed it in a high position of the company. It seems that Complete the transformation of the company from product management to brand management. This kind of business idea is understandable, but in the actual work, the role of brand management center has not really played. His main job is the recruitment of spokespersons; the purchase of media; the shooting and placement of advertisements. The change was limited to changing from the original single voice to multiple spokespersons; from domestic sports stars to international sports stars; from the central five sets of media to multiple media formats; from product advertising to brand advertising and products Coexistence of advertisements; from tens of millions of brand promotion fees to one billion or even several hundred million; nothing more. The brand management center and the marketing and design departments are disjointed from each other in the distribution strategy and product strategy. As a result, the brand promotion effect is further weakened, advertising costs increase year by year, and the promotion efficiency shows the opposite trend. The lack of marketing functions is the real root cause of local companies. The reason why foreign brands are leading for a long time lies in their powerful marketing functions, which can continuously identify market changes and make accurate responses through overall strategies.
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