Sports: Brands in race to grab market share
Chinese athletes.”
It is important to make these activities attractive so the interest they stir in people is not just a flash in the pan, he says.
“For people that start practicing sports, creativity is very important. We know that if we do sports, if we swim, if we run, it can be boring at times because it’s very repetitive. If you don’t bring a bit of creativity you will lose interest, so by adding creativity in the sports you practice, you keep the interest going and it pushes you to the next level.”
Experiential marketing has become more and more significant for all brands.
Only 10 years after the Korean sports brand Kolon Sports entered the Chinese market it has 230 stores in China. The company, which founded a hiking school to cater to the rising number of outdoor enthusiasts, focuses on sports jackets, says Park Chang Yong, Kolon’s vice-president.
While Nike and Adidas remain the most popular sports brand in China, new brands are also doing well.
Since the American sports brand Under Armour entered the China market in 2011 it has enjoyed huge, consistent growth, its sales figures more than doubling every year, it says.
It now has 179 new stores in 19 new cities and says it expects this to increase to 473 stores in 79 cities by the end of this year. It recently opened the Hangzhou Kerry Center store, its biggest brand house in China.
The label is now capitalizing on tremendous opportunities in e-commerce. In addition to official online shops in the mainland, Hong Kong and Taiwan it has also opened stores on TMall.com and JD.com.
“We’re happy to see that more and more consumers are making sports and fitness an essential part of their lives,” says Erick Haskell, managing director of Under Armour Greater China and Korea.
“The consumer understands that different sports and activities require different, specific gear and their buying trends reflect that new knowledge.
“Chinese consumers, while interested in the performance benefits of specific products, are also very focused on the design, style and fit of a specific product. Therefore, our goal is to market these aspects of the product prominently through both our in-store and online shopping experience. We’ve been optimizing our products and shopping experience (offline retail and simultaneous online offer), in compliance with demands and preferences of local consumers.”
Shoppers are now greatly swayed by social media, so-called key opinion leaders and young celebrities, and the brands are taking full advantage of their own social media accounts, as well as those of athletes, influencers, artists and key opinion leaders, he says.
“In addition to building highly technical gear, we focus on consumer touch points such as grassroots events and social media to communicate directly with our core consumers.”
The brand also provides customers the chance to interact with top sportsmen and sportswomen with events such as the Stephan Curry Tour, the 2016 Michael Phelps China tour and the 2017 Tom Brady China Tour.
Kolon Sports has signed Tang Wei and Song Joong Ki as brand representatives to reach out to the young generations. The brand is also looking for collaboration with designers.
Puma has worked with the singer Rihanna, and industry observers say she has added zest to the brand, its collection Fenty X Puma with whose marketing the singer was closely associated, becoming one of the most sought-after products on the market.
Wearable devices have become sales winners for international brands, too. Last year Nike put on the market its Hyper Adapt Trainer 1.0, billed as the first shoes that can tie themselves up. Puma also has its own self-lacing sports shoes, called Autodisc, and Decathlon has developed sports underwear that can detect the wearer’s heart beat.