2016 A Brief Summary Of China Outdoor Market Annual Report
Speaker Introduction Mr. Steve Huang, The Chairman of Nanjing B.C. Sports Products Co., ltd. Graduated from Nanjing University in 1995, and had 8 years professionally experience in Nanjing Textile Imp/Exp. Corp Ltd. In 2002, Mr. Steve Huang founded B.C. Sports, which is one of most important outdoor products company in China who marketed several famous European outdoor brands, including NORTHLAND, LOWA, LEKI, HALTI, HEAD and ALPINA. Now B.C. Sports has been the leading outdoor company in the Chinese outdoor market. In 2014, Mr. Huang and other Chinese/Abroad brands founded China Outdoor Association(COA), which is a nonprofit organization of outdoor industry in China. And he is serving as vice president of COA and leading the one of most important task of COA, defining the quality standard of Chinese outdoor products.
Contents of the Summary 1 2 Market Turnover Retail Channel 3 4 Brand Count Adjustment Period and its Impact 5 6 Understanding China and Chinese outdoor market Messages to European Brands
Market Turnover
Total Outdoor Retail Turnover in 2016: 48 B RMB Low Budget 13,23B 27% Core market 18,44B 38% Sports Brands 8,25B 17% Fashion Brands 8,56B 18%
Core Market Performance Forecast (B RMB) 35,00 32,10 30,00 26,80 25,00 23,10 20,60 20,00 15,00 13,20 15,40 17,10 18,11 18,44 11,00 10,00 6,97 5,00 0,00 4,90 3,40 2,30 0,06 0,15 0,30 0,45 0,66 1,00 1,40 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Market Concentration Ratio 100% 90% 80% 77,20% 78,10% 81,20% 82,30% 84,50% 86,30% 87,20% 70% 60% 50% 40% 30% 20% 38,50% 45,50% 49,20% 53,10% 55,30% 55,90% 56,50% 10% 0% 2010 2011 2012 2013 2014 2015 2016 Top 10 Top 50
Retail Channel
Core Market Channel 1995 2006 2013 1995, Beijing, SunWinter Before 2005, dominant role of specialty shops 2006, split between specialty shops and inside-mall shops 2005 to 2013, inside-mall shops grew faster, hit 65% weight in 2013 2011 online channel emerged; grew even faster since 2013 2015 2015 actual: online 15.4%,inside-mall shops 62.9%,specialty shops 21.7% 2016 2016 actual: online 15.7%,inside-mall shops 63.2%,specialty shops 21% 2020 2020 forecast: online 31.5%,inside-mall shops 51.8%,specialty shops 16.7%
Channel Shares: 2016 Actual & 2020 Forecast 2016 Actual 2020 Forecast Specialt y; 3,89 ; 21% Online; 2,89 ; 16% Insidemall; 11,65 ; 63% Online; 10,10 ; 31% Specialt y; 5,35 ; 17% Insidemall; 16,63 ; 52%
Brand Count
Brand Count 900 30% 800 700 600 500 400 300 176 23,9% 17,1% 218 248 13,8% 284 14,5% 10,8% 24,7% 354 398 12,4% 430 25% 20% 15% 10% 200 100 304 356 369 3,7% 8,0% 409 421 432 442 2,9% 2,6% 2,3% 5% 0 2010 2011 2012 2013 2014 2015 2016 Foreign Brand Domestic Brand Foreign Growth Domestic Growth 0%
Brand Share Trend 25 900 800 20 19,2 21,4 22,2 22,1 21,8 21,1 700 600 15 10 14,5 500 400 300 5 200 0 480 574 617 693 775 830 872 2010 年 2011 年 2012 年 2013 年 2014 年 2015 年 2016 年 Total Turnover Average Brand Share 100 0
Adjustment Period and its Impact
Adjustment Period & Its Impact Adjustment period: 2013 to now: Adjustment Now to second half of 2017:A slight recover signal. 2017 & beyond: back to growth track. Shuffle & reshuffle Explicit & articulate brand positioning, & future road-mapping Retail channel evolving & overturning
Understanding China and Chinese outdoor market
China is a continent, other than a country 34 Provincial level territories(4 个直辖市 23 个省 5 个自治区 2 个特别行政区 ) 333 city level territories(285 个地级市 15 个地区 30 个自治州 3 个盟 不含港澳台 ) 2862 towns
Four typical channels of China's outdoor market To establish brand outdoor roots In 1&2&3 tiers cities, there are a few good retailers Customers Frequency has been dropped quite a lot. Efficient channels to set up brands Emerging channels in China Good and lowzy ones, you have to identify. Growth rate has been slowed down. It is been transformed to a sales channel and somehow marketing platform. Specialty retailers Department stores Shopping Malls Online platforms
Messages to European Brands
Messages to European Brands Strategy& Timing Distributorship License contract Joint venture Subsidiary Partners Identify the proper one: Money, leadership and good team, networking, culture, etc Fix own problems in home market first and then look for partner in China. Do it right Collections: ratios of international collections and Chinese collections Depend on distributors and retailers VS Build up own shops system Marketing and branding Invest to grow Brand equity development & refreshment Localization in design, product development & fit (Korean, American brands) Capitalize & Cash out Sell-off M&A Capitalize the China way
China Outdoor Association COA
About COA Non-profit Organization Founded in 2014 17 Members/40 Brands; It develops continuously. Main tasks: Annual outdoor market research Annual Outdoor industry Summit Product Quality Standard Outdoor Events and Matches Support the Asian outdoor trade-show and outdoor industry development.
Contact us China Outdoor Association Secretariat Contacts:Laurence Zhang Tel:+86 10 67152909 E-mail:zhangyifu2001@163.com Add: Room 707,Building Weitu,No.8 Zuo An MenNei Street Dongcheng District, Beijing China 100061
Questions? Thanks!