Decathlon counterattack: sports brand in the ＂Ikea＂
Li Ning is facing a deficit for the first time in the recent eight years. ANTA Sports reduced the number of 590 stores last year, and will cut 475-575 stores this year. Peak last year net profit fell sixty percent, closing three stores a day on average. When Chinese local sporting goods brands collectively trapped in trouble, but the Decathlon France has chosen to accelerate expansion in China.
Last year, a total of Decathlon in China opened 16 new stores. Now, Decathlon China mall is total 57. According to Decathlon strategic cooperation agreement signed with Vanke Group recently, by 2015, the total number of Decathlon shops in China will reach 150.
Own brand model
It is not too much to say Decathlon is the sports brand of Ikea. Because whether the store or the products, a considerable part of them are all Decathlon own. Decathlon’s operation mode is similar to Ikea.
With its own store for example, Decathlon through their own professional development team to take and self built shopping malls. At present, Shenzhen, Chengdu, Ningbo, Jiaxing, Shanghai and other places have 6 self Decathlon stores.
For the products, in addition to a small part of the brand is the agent business, the vast majority of products are Decathlon's own brand. That’s the reason why there are decathlon CNY 30 a men's T-shirt, CNY 99 a pair of hiking shoes, CNY 39 an outdoor mountain sports bag and so on everywhere.
Careful observation is not difficult to find, in each category, as long as the product is labeled "Blue Brand" is the lowest price of commodities, which are either entry-level product, either for each level in the most favorable commodity prices, but not blue color trademark commodity prices will gradually improve grades based on functionality and style.
Because Decathlon is not a listed company, its financial data has always been a mystery. A lot of people think, such a large-scale private mode pre need devoted considerable manpower and material resources, in addition to the quite large group support from headquarters, Decathlon may face a long payback period problems in China. With its own stores, for example, although without the high cost of rent, but China's commercial real estate construction costs are far higher than abroad.
Although did not disclose profit specific data, but the Decathlon said to the reporter, Decathlon’s profit in China is in good condition, all the shopping malls are profitable. And the Chinese market's growth rate is also ranked first in the Decathlon world.
In addition, brands made by Decathlon mode, there are certain challenges. One of Decathlon's own-brand manager said, to Chinese consumers, Decathlon brand awareness is not strong, most brands even don’t have Chinese names .When consumers to start shopping at the Decathlon, just think of this product is the Decathlon, but what brand is unclear. It is also a focus of future Decathlon, which enhance the impact of its own brand.
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