Financial crisis led to the market-value shrinkage of the sports brands
Due to the impact of the international financial crisis, the market value of sports brands shrunk dramatically. According to the relevant materials, except for the shrinkage of 18% of Nike, the market value of Adidas, Puma, Li-Ning, Anta and Mizuno declined between 40% and 70%, among which, Adidas and Puma shrunk by 46% each, Li-Ning 59%, Anta 65% and Mizuno 40%.
Except for the comprehensive sports brands, fitness equipment production has been greatly impacted as well. Although the steel price is sharply decreased, it is still very hard for fitness device industry that used steel as the main raw material to develop as for the reducing of foreign orders. LIU Wei, General Manager of the Brand Marketing Department of the Impulse Group whose export sales accounted for about half of the output value, said, “Currently the export in fitness market is generally influenced by the economic crisis, while low value-added products have been more impacted as for the low thresholds and fierce competition.”
To the large number of OEM without brands, no-order is even directly related to the survival of the enterprise. Take Xiamen Cowell, the OEM of American AK sports for example. The scale of Cowell ranks only second to Taiwan Johnson with its output accounted for 10% share of the global market, and in 2007 its export value reached 100 million US dollars. However, it is exact this super OEM enterprise is said in “bankruptcy”. Although LI Jianyu, Deputy General Manager of Cowell denied this rumor last week, he still committed, “This crisis may last longer period, and Cowell will adopt conservative approach to strengthen inner management, enhance output control, cut down production cycle, make less use of the working capital, and try our best to avoid overstocked products.”
It is true that the international financial crisis brought huge impact on sports products, however, it also provided a historic opportunity for its development. Recently CHINA SPORTS DAILY published an article, saying that the successful 2008 Beijing Olympic Games helped China’s sports products experience a blowout in that year as for “the native advantages of China’s enterprises guaranteed to provide the competition equipment for 14 major games including table tennis, track and field, gymnastics, rowing etc.,” but the article also stated, “We should also notice the hollow under the prosperity of this market that there is still low nationalization rate in some fields with full independent R&D capacity.”