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In the year of 2009, the Chinese domestic sports brands have gone through fast development. They have gradually become equal competitors to the foreign giants.
In 2009, Adidas was trapped in trouble in every corner of the world; Nike closed its only self-owned plant in China; Mizuno from Japan also closed its 200 stores suffering deficit in China in July. The sports brands agents represented by Belle and Daphne have coincidentally lost their interests in the international sports brands and abandoned their roles as the agents.
When the international sports brands were depressed in China, the Chinese domestic sports brands were greeted by the peak of development. PEAK, 361° and some other domestic sports companies went public in Hong Kong. Lining replaced Adidas as the champion of sales in China. The Chinese sports industry in 2009 was featured with the domestic brands’ enlargement and the foreign brands’ recession.
UK-based Financial Times published an article, saying that the Chinese domestic consumption brands rose and began to challenge the famous foreign brands in the year of 2009. This trend was clearly reflected in the sports industry in 2009. The article suggested people having doubt go to Jinjiang, Fujian, along one of whose streets more than 34 stores were selling Chinese domestic sports brands.
In November 2009, CCTV, or Chinese official TV station revealed that Xtep spent 15.6 thousand yuan (USD 2.23 thousand) getting the title of “partner of CCTV in live broadcast of sports events in 2010. 361° defeated Lining and became the “designated clothing supplier for the CCTV-5 (the sports channel)”. In addition, ANTA, Jordan signed the contracts to obtain the title sponsor of transmitting the single sports game. For example, the audience can see frequently see Jordan’s name when they are watching the NBA games broadcasted by the CCTV.
Grow by sponsoring international games
In the first half of 2009, Adidas’ net profit fell by 95% to 13 million euros. The stress from the huge inventory forced Adidas into the tough battle of “de-inventory”. In the third quarter of 2009, Adidas operating profit decreased by 29% year on year and the sales amount went down by 7%.
The Chinese market is the last straw for these companies. For example, the authorized sponsors of NBA have 10% of their income from the international market, most of which is from China. China also owns the second largest number of NBA authorized sponsors only with the USA standing ahead. According to the NBA official data, 89% of the Chinese people between the age of 15 and 54 know the sponsors of NBA. In the 2008-2009 season, about 1.6 billion Chinese audiences watched NBA games.
The Chinese domestic sports brands will certainly not neglect this huge market. Their principle is that “a huge amount of money in building brands image comes before the satisfactory market share”. Coincidentally, those brands all chose to sponsor the international games.
361°, which went public in 2009, spent 780 million HK dollars for corporate image, taking 39% of the total amount of raised fund. In March 2009 it became the official supplier of the Asian Olympic Commission. In October 2009 it signed a contract with the Philippines Olympic Commission and became its clothing supplier in 2009 and 2010. On December 3, 2009, the company spent 350 million yuan (USD 51.26 million) getting the title of “senior partner of 2010 Guangzhou Asian Games”. The marketing expense concerning this sports event was estimated at 300 million yuan (USD 43.94 million). These activities showed 361°’s determination to have its brand internationalized and its strength as the paragon of Chinese domestic sports brands. In the first half of 2009, 361°’s profit reached 632 million yuan (USD 92.6 million), 2.5 times of the same period of 2008.
In 2009, Adidas was trapped in trouble in every corner of the world; Nike closed its only self-owned plant in China; Mizuno from Japan also closed its 200 stores suffering deficit in China in July. The sports brands agents represented by Belle and Daphne have coincidentally lost their interests in the international sports brands and abandoned their roles as the agents.
When the international sports brands were depressed in China, the Chinese domestic sports brands were greeted by the peak of development. PEAK, 361° and some other domestic sports companies went public in Hong Kong. Lining replaced Adidas as the champion of sales in China. The Chinese sports industry in 2009 was featured with the domestic brands’ enlargement and the foreign brands’ recession.
UK-based Financial Times published an article, saying that the Chinese domestic consumption brands rose and began to challenge the famous foreign brands in the year of 2009. This trend was clearly reflected in the sports industry in 2009. The article suggested people having doubt go to Jinjiang, Fujian, along one of whose streets more than 34 stores were selling Chinese domestic sports brands.
In November 2009, CCTV, or Chinese official TV station revealed that Xtep spent 15.6 thousand yuan (USD 2.23 thousand) getting the title of “partner of CCTV in live broadcast of sports events in 2010. 361° defeated Lining and became the “designated clothing supplier for the CCTV-5 (the sports channel)”. In addition, ANTA, Jordan signed the contracts to obtain the title sponsor of transmitting the single sports game. For example, the audience can see frequently see Jordan’s name when they are watching the NBA games broadcasted by the CCTV.
Grow by sponsoring international games
In the first half of 2009, Adidas’ net profit fell by 95% to 13 million euros. The stress from the huge inventory forced Adidas into the tough battle of “de-inventory”. In the third quarter of 2009, Adidas operating profit decreased by 29% year on year and the sales amount went down by 7%.
The Chinese market is the last straw for these companies. For example, the authorized sponsors of NBA have 10% of their income from the international market, most of which is from China. China also owns the second largest number of NBA authorized sponsors only with the USA standing ahead. According to the NBA official data, 89% of the Chinese people between the age of 15 and 54 know the sponsors of NBA. In the 2008-2009 season, about 1.6 billion Chinese audiences watched NBA games.
The Chinese domestic sports brands will certainly not neglect this huge market. Their principle is that “a huge amount of money in building brands image comes before the satisfactory market share”. Coincidentally, those brands all chose to sponsor the international games.
361°, which went public in 2009, spent 780 million HK dollars for corporate image, taking 39% of the total amount of raised fund. In March 2009 it became the official supplier of the Asian Olympic Commission. In October 2009 it signed a contract with the Philippines Olympic Commission and became its clothing supplier in 2009 and 2010. On December 3, 2009, the company spent 350 million yuan (USD 51.26 million) getting the title of “senior partner of 2010 Guangzhou Asian Games”. The marketing expense concerning this sports event was estimated at 300 million yuan (USD 43.94 million). These activities showed 361°’s determination to have its brand internationalized and its strength as the paragon of Chinese domestic sports brands. In the first half of 2009, 361°’s profit reached 632 million yuan (USD 92.6 million), 2.5 times of the same period of 2008.