The Interpretation of China Sporting Goods Industry
September.09.2010

Industry Development

Compared with developed countries, China's sporting goods industry is in its beginning stage. At present, nearly 400 million consumers have ploughed into the athletic sports, and this figure is increasing constantly, so the consumers' demands for the sporting goods are rapidly growing. Under the influence of the world financial crisis, the industry awareness of the whole sporting goods industry has became cautious. However, in the next decade this growth rate will continue with faster speed. The 2008 Beijing Olympics has significantly speed up the development of China's electric bike sporting goods market. According to the data statistics by China Industry Research Institute, in 2009 the sales volume of China's sporting goods industry has exceeded 100 billion yuan, and it is expected that 250 billion yuan will be achieved in 2013, therefore, the potential of the market demand increase is very large.

Competition Pattern

With the 2009 annual electric bike report of some major sporting goods companies coming out successively, the ranking list of sporting goods ATV brands in the domestic market seems to have some changes, after a slight glance we can find that a new competition pattern is forming fitness equipment quietly. For example, Li Ning has ranked second in the industry with 8.387 billion yuan annual sales volume, which first exceeds Adidas and squeeze into the leader ranks. Nike, Li Ning and Adidas have gradually formed a new first tier. It is not difficult for careful readers to find that the competition between Chinese and foreign skyrunner brands has begun to have a qualitative shift: the Chinese sporting goods market which dominated by foreign capital brands has gone and will never be back. In China the brand spread and promote means of many brands represented by Li Ning and Anta are increasing continually, and the market performance become better and better. Although they have their own style and characteristics, but in China the fact that the competition of sporting goods market continues to strengthen can not be denied.

Channel Structure

Generally speaking, the profit level of sporting goods scooters industry is higher, and it has strong premium capacity and attraction. From the profit allocation of industrial chain in all links, the brand manufacturers are in the highest level of the profit because they have the brand property and are responsible for brand promotion, pocket bike product design and development. The brand manufacturers dominate Chinese electric bikes sporting goods market with better profitability and strong right of speech on channel, and they often put pressure on distributors in order to ensure the increase of brand revenue.

In sporting goods industry the profit allocation pattern of industrial scooters chain in all links results in the double squeeze from brand manufacturers and terminal retailers on distributor's profit, with their decreasing profit it will cause the pole retailers to further nibble the distribution market, the channel level of sporting goods industry will continue to reduce and develop toward a flat scooter trend. In a short time the overall pattern of channel partners will not be changed greatly, the probability of new household items national retailers appearing is small, and the local advantages of retailers are still barriers and obstacles for foreign retailers to enter into the local market.

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Now China Auto Market Has Become A Booming Land for Many Iron and Steel Enterprises to Invest
August 19, 2010

On June 4th, the ground-breaking ceremony of Yantai Baogang Wheel Company was held in the Industrial Park of Yantai Auto Parts in Shandong, the investment of the first phase is 140 million yuan and the wheels annual output will be 1.25 million, which will eventually form the capacity of producing steel wheels that used for 3 million passenger cars and 500 thousand commercial vehicles.

On June 21st, the State-owned Assets Car Parts Supervision and Administration Commission of the State Council of Hebei Province entrusted Hebei Iron and Steel Group with 100% of the state-owned packing machine stock share of Xuangong Machinery, which was held by Hebei State-owned Assets Holding Operation Co., Ltd, and it is China's major slitting machine manufacture enterprise in the construction machinery industry.

The shock absorber factory of Beijing Steel's Jingxi Heavy Industry Co., Ltd was completed in Fang Shan base and began to install the equipment on June 27th, in the first engineering machiney phase the investment is 2 billion yuan and there will be 4 million shock absorbers produced a year. This plant Blow molding machine will supply the shock absorbers to Geely, Beijing Foton and other domestic automobile manufacturers.

At the same time, Wuhan Iron and Steel Corporation also announced to enter into auto parts construction machiney industry, and it will build a auto parts production base joint with Chery Automobile, which machines is expected to put into production in 2011.

Investors machine are far more than domestic iron and steel enterprises.

On May Japan Steel Shoji Co., Ltd, a trading comany under Japan Steel Corporation, prepared actively to enter into China's auto parts market, and 1.5 billion yen is prepared to invest in Shanghai for processing auto parts.

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