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Decathlon audit expands quickly in China

Source: TRANWIN 2019-06-25 14:24 by admin Decathlon audit expands quickly in China Read: 1105

By the end of this year, Decathlon will open 15 new stores in China, and the total number of stores in the Decathlon inspection list will reach 55. In the future, Decathlon hopes to maintain the same growth rate of “15 in 5 years, 30 in 5 years, and 60 in 5 years”.

Foreign retail giants are opening up China's best time with a sense of fresh shopping that is different from supermarket hypermarkets and department stores. These fresh retail formats include the familiar Starbucks, IKEA homes, and of course professional sports goods chain stores like Decathlon.

To date, Decathlon has opened more than 600 chain stores in 18 countries around the world. At present, this large-scale full-scale sports goods supermarket is accelerating the expansion of the Chinese market.

There is no upper limit for China's investment expansion

Nike recently released its fourth-quarter financial report showing that the decathlon inspection standard as of June 2012, Nike's sales revenue in China, including footwear, clothing and accessories, showed a downward trend, down 3.9% from the previous month. Recently, Peak Sports also issued a profit warning that the comprehensive net profit for the six months ended June this year and the end of December will be significantly reduced year-on-year, mainly due to extensive inventory adjustments and weak economic conditions in the industry this year. The demand for sporting goods has a negative impact. The company's annual net profit last year decreased by 5.4% year-on-year to 777 million yuan. In June, Li Ning also issued a profit warning.

Industry analysts believe that after a decade of rapid development, the domestic sportswear industry has entered a stage of deep adjustment.

However, compared with the bleak days of the international and domestic sportswear industry, Decathlon’s momentum is very strong. “The key word for Decathlon’s development strategy in 2012 is to speed up.” Debbie Group’s Asia Regional President and Vice President of Greater China, Mr. Bai Baihang said in an interview with reporters that Decathlon’s China’s sportswear market grew by 15% to 20% last year. And Decathlon’s growth rate is faster here.

Baihang revealed that by the end of this year, Decathlon will open 15 new stores, and the number of Decathlon stores will reach 55. In the future, Decathlon hopes to maintain the same growth rate of “15 in 5 years, 30 in 5 years, and 60 in 5 years”.

However, compared with Carrefour, Wal-Mart, RT-Mart and other foreign-funded hypermarkets that have three or four hundred chain stores in China, and thousands of sporting goods stores such as Adidas, Nike and Li Ning, they entered the Chinese retail market in 2003. Decathlon’s stores are less than a hundred.

In this regard, Bai Baihang said frankly that the speed of the past ten years for Decathlon is not fast enough. “In the first five years of entering the Chinese market, Decathlon is still in the stage of learning and adapting to the market. It is looking for a suitable operating model in China. It is beyond its own plan to open 15 stores.”

In addition, Baibai Airlines said that the sports space chain and large supermarkets have different market spaces. Supermarkets, clothing and daily necessities are the basic needs of people, and there is demand in both first- and second-tier or third- and fourth-tier cities. "But for the sportswear industry, it is the living environment and living conditions that people will consider when they meet the basic needs of living and living." In this regard, Decathlon, who just entered the Chinese retail market in 2003, believes that The target market will grow more and more with the development of China's economy. From the beginning of more than 40 cities to the current more than 100 cities, the gap is getting smaller and smaller.

Expansion does not seem to be difficult for Decathlon. "First, China has a lot of market opportunities and a large base. It is not difficult to open a store. Second, Decathlon is a family business. Relatively speaking, the company has sufficient funds and the support provided by the group headquarters is quite strong." Bai Baihang stressed that the Decathlon family shareholders The Chinese market is very confident and confident for more than five years, but is very confident about the Chinese market that will last for 100 years.

“China’s current per capita sports consumption is only 10 yuan, and the United States can reach 300 yuan.” Bai Hanghang said that China’s more potential areas will not only be for fashion consumption, but for real enjoyment of sports, and the demand for sporting goods will continue. increase.

Baihang told the China Business Daily that China's Decathlon has now achieved profitability, and Decathlon inspected the factory but in order to maintain growth, the investment funds are still from France. “Dika has no cap on investment expansion in China. We don’t have any capital flow restrictions.” It is reported that in terms of growth rate, the Chinese market has now become the world’s fastest growing market for Decathlon, with turnover ahead of the global market. Fifth, the number of stores is the fourth in the world.

“The only challenge is that we don’t want to sacrifice the quality of the project because of the speed, and lose the genetics of the company.” Bai Baihang said that Decathlon’s site selection is very strict. In addition to requiring a larger parking space, a certain proportion of the purchased property is also Decathlon. Different from the challenges of other foreign retailers.

According to Decathlon's global experience, the purchase of more properties is to provide assistance rather than resistance, allowing the store to more flexibly cultivate the store area. But in China, finding the right single item or plot quickly is not that simple.

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