【Market】How Long Can “Hypermarket” Pattern of Sporting Goods Retail Go?

　　Xinhuadu announced recently that it would open 100 sporting goods stores in the next 5 years. Gome tried operating sporting goods hypermarket not long ago, but failed at last. Did hypermarket mode not fit domestic sporting goods retail?

　　Guest (listed in no particular order)：

　　Mr. Li Guangdou, No.1 expert on Chinese brands, sets up Huashengzhiye, Li Guangdou brand marketing organization

　　Mr. Ma Gang, observer of footwear and apparel industry

　　Journalist: when competition in domestic sporting goods going fiercely, Xinhuadu cooperates with INTERSPORT to open 100 INTERSPORT sporting goods specialty shops in the next 5 years. How does Xinhuadu bring through?

　　Ma: Survival in sporting goods industry is more important.

　　Xinhuadu is just trying. Gome’s failure is worth thinking. For Xinhuadu, survival is more important.

　　INTERSPORT chooses to base in Fujian for developed economy, sports environment, especially popular basketball sport. Xinhuadu covers Fujian broadly, the cooperation stands at a high position in the market and channel.

　　Journalist: Can only selling top 20% brand products be an advantage?

　　Li: The real advantage is brand value of Xinhuadu.

　　Brand should find out an accurate position; no brand can cover all consumers. Only selling top 20% brand products gives Xinhuadu brand a good material and design, especially a accurate position, but the real advantage is brand value.

　　Ma: Best-sellers are not enough, improving consumption experience is needed.

　　Xinhuadu is a new comer in sporting goods retail, accumulated experience is needed to make consumers accept this brand. Advantage others don’t have is the key to stand firmly in this industry. However, best-seller is just a relative concept, if other retailers put forward boutique to compete with, will Xinhuadu loss this advantage? Best-sellers are not enough, consumption experience is more important to set up consumer dependence on store.

　　Journalist: Xinhuadu wants to copy IIC successful pattern to China, how much the feasibility is?

　　Li: Successful pattern can’t be copied.

　　Successful pattern can’t be copied, and making change correspondingly depends on market situation. For example, rent takes the biggest part of store cost, but manpower instead of abroad, which leads to different development strategies.

　　Ma: Learn experience while transform locally

　　In a word, mature degree of sports industry and sale situation are quite different. Domestic market focuses on foundational and popularized products and specialty shops, INTERSPORTS owns successful experience but still needs transform locally.

　　Journalist: Gome started to research on sporting goods sale in 2007 and set up the first store in 2010, but it had to close the store at last. Did it fail because of copy Gome’s electrical equipment hypermarket, or did sporting goods not fit hypermarket pattern?

　　Li: Electrical equipment pattern can’t be copied to sporting goods.

　　Speed is the key to sporting goods retail. Frequently renewing increases consumers’ interest and reduces stock. Electrical equipment has a low speed renew rate, so two types can’t exchange. Sporting goods specialty shops need to distinguish with sporting goods area in general store and have their own features and set up brand image.

　　Ma: Failure of Gome has two tiers reasons.

　　Gome sports fails for many reasons, such as decision layer, location selection, products and management mode.

　　Journalist: If sporting goods hypermarket can achieve success, what are the advantages and shortages compared to sporting goods specialty shop?

　　Li: Sporting goods hypermarket completes consumption experience and influences some products sale.

　　Sporting goods hypermarket should turn up as a whole, and it not only supplies a place to sell but a feel of consumption. What consumers are thinking about should not be certain brand but the whole market. Just like super market, some people like Wal-Mart and some like Carrefour. Consumers will choose the super market they like and become loyal customers. Make consumers depend on your hypermarket other than certain brand, which will promote purchase desires and be free of brands restricts.

　　Relatively, sporting goods brand influence reduces and impacts on some products sale.

　　Ma: Hypermarket and specialty shop exist at the same time will become main stream.

　　Specialty shop can expand channels more quickly and flexibly in the early, which contributes a lot to sporting goods industry. Moreover, taking some market shares, specialty shop is a good sale mode in middle and small market. Different markets demand subdivided retail, and hypermarket and specialty shop both exist will lead the way.

　　Postscript: Hypermarket, including comprehensive supermarket are very common in sporting goods business abroad, such as European Decathlon and American Footlocker, typical retailers, however, there is no mature sporting goods hypermarket retailer from China so far. In Ma Gang’s opinion, it is related to domestic economy level, mature degree of sports industry and retail, transportation, and lifestyle. Sporting goods hypermarket is just a direction of retail, and it will bloom in the future.