China Sporting Goods Industry Battle

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China Sporting Goods Industry Battle

  1. 1. Joan López. Strategy Consultant MBA Full Time 2011 Shenzhen. China. May 2009
  2. 2. This presentation is part of a project made for***Consulting Group. All charts, tables and sentences’rights are reserved.
  3. 3. 1.  Introduction to China (C). 2.  C Sporting Goods Industry. 3.  Adidas. The Present. 4.  Li Ning. The Future.
  4. 4. Introduction to China (C). C Sporting Goods Industry. Adidas. The Present. Li Ning. The Future.
  5. 5. Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference onDemographical Info (2009) Unit Population billions 1,33 Land area sq Km 9.596.961 Economi Overview (2009) Inflow of Foreign direct investment $188 b per year. In 2009 C stood as 2nd largest economy. Trade and Development. 200m rural labourers have relocated to urban areas. Government vowed the need to increase domesticconsumption in order to make less dependant offoreign companies Introduction. Overview
  6. 6. C GDP and PPP Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on Trade and Development.
  7. 7. C Population Distribution 957,6m Potential Customers Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on Trade and Development.
  8. 8. Introduction to China (C). C Sporting Goods Industry. Adidas. The Present. Li Ning. The Future.
  9. 9. • The competition in C sporting Goods is fierce. • Adidas and Nike compete with local C brands such as Li Ning, Anta and Erke. • Key Points: Brand Loyalty, Design, Product variety, quality and price. C Sporting Goods Industry
  10. 10. Market Shares of Sports Brands in C by Revenues, 2009 Li Ning is the third Sporting Brand in C Own Source
  11. 11. Gross Profit of Sports Brands in C, 2009 Own Source
  12. 12. Net Profit of Sports Brands in C, 2009 Own Source
  13. 13. Adv. expenditures of Sports Brands in C, 2009 624m RMB Own Source
  14. 14. Introduction to China (C). C Sporting Goods Industry. Adidas. The Present. Li Ning. The Future.
  15. 15. Adidas Revenue Structure, 2008 Source: Adidas Annual Report 2009
  16. 16. Adidas’ Performance in C, 2005-2008 Source: Adidas Annual Report 2009
  17. 17. Adidas Net Sales 2004-2008 in million of €. Source: Adidas Annual Report 2009
  18. 18. High jump Football Adidas Property. All rights reserved Adidas Marketing in C, 2008
  19. 19. Volleyball Basketball Adidas Property. All rights reserved Adidas Marketing in C, 2008
  20. 20. Introduction to China (C). C Sporting Goods Industry. Adidas. The Present. Li Ning. The Future.
  21. 21. Mission: Vision: Core Values:
  22. 22. Li Ning Net Sales 2004-2008 in million of €. Li Ning Property. All rights reserved
  23. 23. Li Ning Operating CF 2005-08 in million of €. Li Ning Property. All rights reserved
  24. 24. Li Ning Gross Profit Margin, 2004-08 Li Ning Property. All rights reserved
  25. 25.     
  26. 26. • Newly signed NBA players: Baron Davis (LA Clippers), José María Calderón (Toronto Raptors). • China University Basketball Association (Cuba). • Nation-wide junior secondary school basketball events. • And… 1. Basketball.
  27. 27. Li Ning. Advertising I
  28. 28. • OfficialPartner of the Association of Tennis Professionals (ATP) in China. • Launched a promotion program during the Shanghai Tennis Master Cup “Li Ning – ATP Feel It”. • Newly signed player: Ivan Ljubicic. Li Ning. Tennis.
  29. 29. • Cooperated with Beijing’s Nirvana Yoga, which promises the biggest growth potential in the fitness market in China. Li Ning. Women Fitness.
  30. 30. • November 2008, “Badminton World Federation Super Series –Li Ning China Open 2008” was held in Shanghai. • In the same month, Ms. Wang Chen, the Group’s sponsored female badminton player, was crowned the winner of the Hong Kong Badminton Championship. Li Ning. Babminton.
  31. 31. Li Ning. Advertising II
  32. 32.   
  33. 33. • Lifestyle change creates immense opportunities for the sector: Increase per capita income, growing group of health-conscious consumers and urbanization. • Growing popularity of sports tournament and the broadcasting coverage of major events continues to expand. Li Ning C. Initiatives.
  34. 34. Ratings/Awarness of Sporting Goods in China, 2008 Li Ning Property. All rights reserved
  35. 35. • Improve the monitoring and collection of operating data intelligence at the retail level. • Increase store sales growth. • Broaden presence in second and third tier cities. • Better distribution service to meet the needs of local customers. Li Ning C. Initiatives.
  36. 36. Store Expansion Plan in C. Forecasting 2009-2013 Li Ning Property. All rights reserved
  37. 37. • SpanishLa Liga: Espanyol C.F. Malaga C.F.Celta de Vigo C.F. • SpanishACB League: Caja Laboral, Baskonia and DKV Joventut. • Spanish National Basketball Team. Li Ning Europe. Initiatives.
  38. 38. Thank You
  39. 39. • More information and projects: Email: joanlopezgonzalez@yahoo.es Linkedin Group: Networking Bridge China Spain. • See this presentation and others: http://es.linkedin.com/in/joanlopezgonzalez

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