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Outdoor sports brand came to the transition of the crossroads

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Outdoor sports brand came to the transition of the crossroads

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company news
2017/05/04 10:31
For the general public, the sport has a variety of forms, can be in the sports field, you can also in the gym can also be any outdoor sports for the place. To some extent, only to get rid of the limitations of sports scenes, the potential of sports consumption will be fully mobilized. No matter what kind of scene in which exercise, equipment is always unavoidable topic. However, in recent years, the global sporting goods industry development trajectory point of view, if the sports equipment is restricted by sports venues, then their development will encounter bottlenecks.
 
The traditional sports brand all experienced ups and downs, and ultimately to embark on a road of life, if blindly stressed the functionality, we will encounter the front of the problem. Adidas, Puma are relying on this idea was able to reverse the decline. Outdoor industry is also known as the sunrise industry, but outdoor sporting goods are facing the traditional sporting goods brand has been or are experiencing problems.
 
As a large sports industry, the United States outdoor sports industry development with a certain industry guidance. It is reported that the United States each year more than 140 million people to participate in outdoor sports, including golf, snow, wild camping and other projects are more preferred Americans. According to market research firm NPD data show that in the year to October 2015, the United States outdoor sports supplies increased by 6.7%, the total value reached $ 18.8 billion.
 
And compared to the traditional sporting goods retailers, outdoor brands to respond to changes in the market more sensitive. More and more young people began to go outdoors, which gave the outdoor sports brand more opportunities. But in the final analysis, traditional sporting goods and outdoor sporting goods are snatching the same market, it can be said that the two are not particularly clear boundaries, so it is likely to encounter similar problems.
 
In accordance with traditional thinking, to participate in outdoor sports is mainly a number of specific groups, but this old yellow calendar has long been turned. People wearing professional outdoor sports shoes is not necessarily to participate in a field event, it may be to go to work or join a friend party. Steve Barker of the American Association of Outdoor Industry (OIA) has said that more and more consumers are starting to change their minds and begin to reduce the purchase of high quality outdoor equipment and turn to outdoor lifestyle products.
 
US "outdoor" magazine stakeholders also expressed a similar view, "outdoor leisure will be more and more away from those remote wilderness of large outdoor travel, replaced by everyone can participate in the experience, even in the city, people Can also be easily connected with the outdoors. "This is a trend, in fact, outdoor sports manufacturers are put forward new challenges. North America's outdoor industry is the most developed, and therefore more industry representative.
 
Perhaps by the impact of the US sports environment, the US outdoor sports brand is also more inclined to some traditional sports practice. Like Colombia for three consecutive years to sponsor the ring Mont Blanc endurance race, in addition, Colombia is also the beginning of 2016 and Premier League giants Manchester United signed a club outdoor sports apparel partner. Throughout the world of football, with the category of sponsors of the case is rare, because it does not match the characteristics of outdoor industry, and Colombia has bravely took this step.
 
In 2016, Colombian revenue grew 3% year on year, net profit rose as high as 10% to $ 192 million. In the fourth quarter of last year, Europe, the Middle East and Africa became the most eye-catching overseas markets, net sales rose 20% year on year, on the contrary, the Canadian market is poor performance, while Latin America and Asia Pacific market is still the main force of the Colombian overseas market. In North America, outdoor sports supplies competitive pressure is not small, in addition to the United States, Canada's local brands are also quite competitive.
 
As the biggest opponent of Colombia in the United States, The North Face's momentum is relatively stable. Over the past five years, The North Face's sales have grown by $ 400 million to $ 2.3 billion. The next five years, The North Face hopes to increase this figure to 3 billion US dollars, which means that the brand will continue to increase product sales growth.
 
It is not easy to achieve this goal, because the impact of the US retail crisis, The North Face's annual results of a 2% decline, especially in the fourth quarter dragged heavy legs. It can be said that The North Face is experiencing a difficult period, the company needs to respond to the existing situation in order to return to the performance track.
 
Recently, The North Face made a slight adjustment to the company's executive team, but also reorganized the business unit, the company's business into four categories, namely, mountaineering products, mountaineering leisure products, urban exploration products and fitness products. This also shows that The North Face in the main outdoor characteristics at the same time, also began to strengthen the development of leisure and fitness products, in order to reach a wider range of consumers.
 
According to the company's estimates, in addition to mountaineering products, the other three categories in the next five years the average sales growth will reach about 10%, especially fitness products will be more prominent. These three categories will undoubtedly become the main determinant of The North Face's performance growth. In contrast, the average growth rate of traditional mountaineering products can only reach 4% -6%, but this will still be the brand's main category.
 
Parent company VF Group is ready to continue to strengthen its own sports sector, so that the North Face sports attributes more focused. The group has the original fitness brand Lucy into the The North Face, thus strengthening the North Face fitness products category. In addition, the city to explore the product line will become the main thrust of the Asia-Pacific region, the next five years, there will be 100 new stores in Greater China, Singapore and other places set up. On the whole, The North Face wants to achieve the goal or to rely on overseas markets, especially the Asia-Pacific and European markets.
 
North American outdoor brands are making themselves more sports, more casual, and in-depth force Eurasian market, which makes some local brands become tense days. Not long ago, domestic outdoor brand Pathfinder announced the first quarter of this year earnings, net profit fell by about 29% year on year. According to the "2016 China Outdoor Products Market Research Report" shows that despite the rapid development of China's outdoor sports, but the physical retail industry decline, the industry slowdown, market competition gradually intensified. Outdoor sports goods market is in the product transformation and consumption restructuring of the adjustment period.
 
The North Face Asia Pacific senior marketing director Lin Haiyun said that now the outdoor market has too many similar products, so the equipment on the competition more and more intense. A brand needs to stand out, there must be a core value can not be copied. In other words, in addition to rich product categories, but also to adapt to the trend of experiential consumption.
 
Similarly, the European outdoor leader brand Jack Wolfskin is also in trouble, there is news that its parent company Blackstone Group is ready to transfer control of the brand creditors, thereby reducing the debt of 80 million euros. In 2011, Blackstone Group acquired Jack Wolfskin for € 700 million. In March 2015, Jack Wolfskin to recover the Chinese market agent, since then, the brand in the Chinese market also went downhill.
 
Jack Wolfskin's high debt almost decides that no one will pay for it, so equity swap is a viable option. If the Blackstone Group really accepted this practice, it also shows that the Group has completely lost confidence in the outdoor brand. Jack Wolfskin poor performance in the past two years, the European base camp is being North American brand invasion, and overseas markets also suffered major setbacks.
 
Outdoor sports goods brand to the transition of the time, the outdoor card has obviously lost the role of the label, the rest is more homogeneous. The so-called consumer transformation is the key to enrich the product attributes, get rid of the restrictions on consumption scenarios, the US brand has been in this regard to seize the initiative. Of course, the outdoor sports market still has great potential for development, for the brand, the personality is particularly critical.
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