Decathlon "counter attack" China market

2012, the inventory crisis brought by the closing tide is sweeping the sports apparel industry, Li Ning, Nike and many other domestic and foreign companies in the Recruit. In stark contrast, decathlon, the world's largest sporting goods retailer, opened 16 new stores in China only last year, totaling 56 proprietary stores in 25 cities nationwide. Its parent company, Oxiland Group, has achieved 7 billion euros in global turnover, an increase of 7.2% per cent year-on-year. It is clear that the acceleration of gold in the Chinese market has become an important development strategy for the French retail giant. By 2015, Decathlon will have a total of 150 stores in China, meaning that in three years decathlon will add nearly hundred stores in China.

What Magic weapon does decathlon "hit" China market?

A magic weapon: the whole industry chain model of Sports to create the professional empire of sports

Decathlon belongs to the sports industry chain Group Oxiland, is not only the designer of sporting goods and brand creators, but also sporting goods retailer, is a research and development, design, brand, production, logistics and retail as one of the whole industry chain group. The business model of the whole industry chain has eliminated the link of the distributor and can control the cost to the most reasonable range. In addition, Decathlon has an automatic ordering system and a self-built logistics system, which is naturally not afraid of high inventory risk.

Magic Two: Experiential shopping stick to consumers

Decathlon China Shopping mall is fast and convenient by self-service. This experiential marketing model is very popular in Europe and America. Decathlon also organizes sports shows in stores, introduction and other activities, so that all consumers have the opportunity to understand, try and enjoy the joy of different sports events, so many "rookie" level of outdoor sports enthusiasts through the on-site experience decathlon entry-level, civilian outdoor supplies, easy to choose their own equipment.

Three: Cost-effective products to play the target audience

Over the past 3 years, a major feature of the sports market has been the rise in prices. The price of Nike's flagship product has almost doubled from 3 years ago, and local brands are far from being outdone. In the peer to the hope of more money, decathlon but the contrary, 149 yuan hiking shoes, 59 yuan lightweight backpack, 49 yuan of fast-drying clothes, 19-yuan cashmere sweater ... Decathlon for consumers, the most attractive place is: it is really cheap and affordable, is undoubtedly a piece of Taobao shrine under the line.

Decathlon China's future development path still has challenges

First, the professional guide is scarce.

Into decathlon, a handful of clerks in a huge store. Self-experience shopping is the characteristic marketing model of decathlon, but many consumers are still unprepared for the professional products, such as: How to use the automatic quick-opening tent? How do I clean the suit? If at this time have a professional shopping guide demo, explain professional knowledge, I believe will increase the purchase rate.

Second, there is insufficient detail in the user experience.

Many of the products in decathlon stores are not packaged, especially shoes that have no shoe boxes. This saves shelf space and reduces costs. But for some consumers to consider seasonal storage or cleaning, still want to have a shoe box. Decathlon can provide packaging services at the cashier's desk or at the service counter, and can sell green shoe boxes or bags at cost to meet the demands of different consumers.

Finally, brand influence needs to be improved.

For Chinese consumers, Decathlon's own brand awareness is not high enough to strengthen the influence of their own brands. China Sporting Goods market is driven by supply, Nike, Adi, Li Ning, Anta and other brands are basically the use of sports lifestyle driving the emotional appeal of the brand, thus, a large number of sponsorship of sports, sports stars to do the endorsement is bound to cause high input, high marketing costs, high product prices. Decathlon does not take the above brand marketing route, but can spread brand awareness and enhance brand influence through Word-of-mouth marketing activities, micro-credit marketing and other means.

I hope decathlon can overcome the challenge, keep rational expansion, and bring more and better professional outdoor products to consumers, and further enhance the user experience, personalized service and brand influence.

Mu Chaoxi

China marketing decision expert

Dean of the school of excellent marketing

Visiting Professor of Tsinghua University