【Industry Trends】Four Measures Helped China Sporting Goods Industry Get Out Of Trouble

　　Because of financial crisis, market value of China sporting goods industry shrank from 2010. Although Li-Ning sponsored CBA 0.4 billion Yuan, the overall industry loss existed, given plenty of inventory and high operation cost, as well as a number of closed stores.

　　How sporting goods industry got through the cold winter? That was a question the whole industry needed to think about.

　　Firstly, under the global economic recession, enterprises needed to adjust and transform, with the help and favorable policies from government.

　　Under such financial conditions, consumption shrank as the willingness decreased. GDP declining from 14% to 8%, the middle class reducing, stock market dropping from 6124.04 to less than 2000……sporting goods industry was influenced too, regardless of sales or capital market.

　　Consequently, as to this industry didn’t produce basic living goods, the enterprises should transform quickly and adjust structure and strategy; on the other hand, the central and local governments should supply helpful policies, such as reducing tax, preferential policy, to improve survival environment and arrange enterprises’ structure.

　　Secondly, regular participation rate was still at a low level. Fostering participants and market could benefit sporting goods industry.

　　Chinese population was more than the sum of American, Japanese and European people, however sneaker per capital was just 0.6 pairs, far less than 4.5 pairs in USA, 3.7 pairs in Europe and 4.4 pairs in Japan, which implied there was a great development space of participants and sporting goods market.

　　Chinese sports population remained a small size, not mention per capital. Due to little spare time, students and office workers couldn’t take part enough physical activities, while the retired became dominant.

　　Regular participants were the foundation of sports market, and the whole industry needed to think about how to foster this market with a bright future. At this point, it was a smart choice to sponsor CBA for Li-Ning, which meant Li-Ning invested in basketball too.

　　Thirdly, technology applied in sporting goods could help enterprises compete with strong opponents.

　　Domestic brands were far behind international ones in technological investment. In a long term perspective, low end fashionable way was only fit for accumulating capital and technology, but high tech was the key to support competition with advanced enterprises. Therefore, corporations should accumulate innovations and add value on products, finally on brands.

　　Fourthly, investment in education could fundamentally enlarge market size of sporting goods.

　　Sports education didn’t get enough investment and attention, which brought about small size of sports population. Low capacity of the market and large inventory aggravated imbalance between supply and demand. We should promote sport for all, which could be profitable for sporting goods industry.

　　Sporting goods industry relied on sorts, and developed sports gave growing space to sporting goods. If sporting goods industry wanted to expand, it must raise the purchasing power and boost sport for all first.