Li Xiang: The Era Of Multi Brand Market Segmentation Is Coming

Domestic sports brands have taken the outdoor market as a new growth point. After launching outdoor products, 361DU and Nordic outdoor brand One Way Sport jointly established a joint venture, Wanwei, which will be established in Xiamen, Fujian Province Zhonglan Sports (A wholly foreign-owned enterprise, 100% of which is owned by Wanwei) is responsible for expanding the outdoor equipment and cycling market in Greater China. Li Xiang, general manager of Zhonglan Sports, said to reporters that all brands are already doing or planning to provide more needed products and services to more specific groups.

　　 Transnational marriage

"The products are completely different and will be more professional." Li Xiang explained that the products of One way are different from the outdoor series products launched by 361DO, and "the positioning, target market and target population are completely different". According to the reporter, 361DU's outdoor products focus on urban outdoor and are popular "light outdoor" products in China, while One way products focus on outdoor sports, winter sports and hard equipment and technical clothing in the field of professional cycling sports. Li Xiang said that the One way product is an important market segment, rather than a segmentation of the existing market of 361 degrees.

It is reported that 361DU Group and One Way Sport will jointly establish a joint venture, in which 361DU Investment Company and One Way Sport hold 70% and 30% equity respectively. The joint venture owns the resources of One Way Sport in Nordic sports and outdoor sports products, and will be responsible for expanding the outdoor equipment and cycling market in Greater China. 361 degrees will be responsible for the organization of the joint venture team, as well as the daily operation and management of the design, production, distribution and promotion of One Way products in Greater China; One way Sport will provide product design, R&D and technical innovation support.

Li Xiang said that the company's research found that in the domestic market, the number of international outdoor brands accounted for 1/4, but achieved more than 70% of the share. "Be sure to follow international brand Cooperation. " In his opinion, 361 degree can take this opportunity to cultivate professional outdoor. At the same time, 361 degree's experience in the domestic market over decades, including product distribution, team, operation, cooperative factory, research and development institutions, agents and other aspects of the entire industry chain, is one of the reasons why One Way is optimistic about the Chinese market but still has to find partners.

　　 Independent development

Although it is a company invested and controlled by 361D, Li Xiang revealed that the promotion of One way in Greater China will not rely on the channels and resources of 361D. Li Xiang analyzed the Beijing Business Daily reporter that 361 degree products and One way products have different consumption patterns because of their different positioning. "In a word, the target consumers of One way cannot go to Li Ning, Anta and 361 degree products".

Li Xiang said that the One way will be located in the provincial capital and above cities, with high-end shopping malls as the main store. "There is no way to share the existing system of 361D, or there will be no overlap." In addition to offline stores, online will also develop synchronously, "there will be its own independent online mall, and it is also planned to settle in well-known e-commerce platforms such as Tmall and JD, when online and offline will achieve the same price". Li Xiang revealed that an important reason for choosing One way was that it was "a blank sheet of paper in China and would not worry about disrupting the price system".

　　 Li Xiang He said that all stores of One Way will adopt direct sales instead of traditional dealer agents. "After the development of online channels in recent years, the business structure and ecology have changed, and the word" agent "will disappear in the future." According to the plan, One Way will open the first batch of stores as early as next autumn and winter, and "at least 20 stores will open in first tier cities next year".

　　 Segments

"It is very easy to make a small adjustment to do public outdoor now." Li Xiang described the current market pattern to reporters. "Domestic sports brands have launched outdoor series products, but this is based on a logo, to meet the need to obtain consumers with basic outdoor functions at a lower price.". Li Xiang believes that this will make the industry face the problem of homogenization, and the brand of mass outdoor products will face pressure within three to five years.

At the same time, consumer demand and market environment have changed. "All brands are either already doing it or planning it. There is no hope for a big and comprehensive brand in the future," said Li Xiang.

According to Li Xiang's description, the One way product will be mainly composed of mature, rational and high consumption capacity people who will not be easily moved by brand advertising and publicity, but will pay more attention to the product itself. "The need to return to the essence of the product" is also the reason why One way products are introduced into China for the first time, and Li Xiang believes that it will not be too difficult to improve brand awareness.