03/06/2013

Business news : Healthy lifestyle trend increases opportunities in China

As urbanization and industrialization continue to grow and the living standards of hundreds of millions of people increase as a consequence, it is no wonder that escaping the city has become a trend in China. Spending time outdoors and the desire to lead an active and healthy lifestyle also increase opportunities for sporting goods companies.

“Suffering from pollution and traffic has led to a very strong demand for leisure and outdoor activities where one can enjoy clean air and water. There is a growing appetite for sustainable development and getting back to nature, which we can benefit from,” explains Kafir Chen, General Manager for Amer Sports' Outdoor Sports in China.

Kafir points out that for the Chinese, outdoor sport does not necessarily mean an adventure or extreme activities, but activities which the whole family can enjoy. As an increasing number of Chinese families now own a car, many head for weekend excursions outside the city to enjoy, for example, hiking or walking. In addition, running is booming. Nowadays every city has its own marathon or a similar running competition.

Changes in the marketplace

Along with the dream of a healthier and more active life, the business and retail environment is shaped by changes in the infrastructure and the digital world.

“In China, almost every aspect is moving very fast. The development of our highway and railway systems has created fundamental changes because suddenly, the big cities are getting closer to each other. At the same time, social media channels such as Weibo, China’s own version of Twitter, and Qzone, a site similar to Facebook, are flourishing. This creates a very different environment for our retail and marketing,” Kafir explains.

Rapid reaction to market changes is needed in order to stay ahead of the game.

“One phrase that I have been using for years is 'To succeed in China, we need to become vertically capable with the brand'. This means that we need to be fully competent inside the whole value chain, from brand positioning to communication with consumers, from choosing the right product line strategy to the development of the most effective retail formats, manage not only the sell-in but also the sell-thru with full commitment,” Kafir continues.

Building brand awareness

Besides the value chain, brand building is also important. As in most developing markets, the demand for quality brands is high in China as well, especially among the more educated people.

In building brand awareness, Kafir mentions the importance of opening own retail stores in strategic locations. Social media presence and digital marketing is also something that the team is investing heavily in.
Source and text Amersports 

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