Local Sports Brands Emphasize Publicity And Promotion Expenses.

< p > despite the fact that the a href= "//www.sjfzxm.com/news/index_c.asp" > the local sports brand industry "/a" has fallen to the bottom, they are still willing to spend money on advertising and promotion.

According to the annual report, Lining spent 19% of his income on advertising and marketing last year. Last year, he dug Wade from Nike to speak for 10 years at a price of about 100 million dollars.

Anta and 360 degrees also spend 1/10 of their total turnover on promotion.

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< p > "to do is also to die, not to do is also to die."

Industry analysts pointed out that the proportion of publicity and promotional expenses has become increasingly prominent, but it still has little effect and has not stimulated its performance improvement.

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< p > < strong > brand driven business is difficult to achieve effective < /strong > < /p >

< p > reporter preliminary statistics, the six major sports brands last year in publicity and promotional expenses amounted to 3 billion 781 million yuan, accounting for 12.8% of the total revenue.

Lining's annual report shows that last year's total revenue was 6 billion 739 million yuan, down 24.5% from the same period last year, while advertising and marketing spending totaled 1 billion 325 million yuan last year, down 15.4% from the 1 billion 567 million yuan in 2011, and the growth rate was lower than the total revenue decline.

The 31st annual report shows that advertising and publicity expenses account for 10.6% of the total turnover, or 520 million yuan, which is 2.8 percentage points higher than that of last year's 7.8% share.

The cost of PEAK's advertising and promotion expenses accounts for 14% of the total revenue, and the proportion is increasing year by year.

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< p > counting on the spokesmen and sponsored sports events of various enterprises, the reporters found that last year Lining stepped up the investment in the cooperation between the Chinese men's basketball professional league (CBA) and the top NBA player Wade, and last year, there were more than 4 spokesmen who signed the contract last year.

PEAK signed a endorsement agreement with 15 NBA players by the end of last year.

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< p > it is interesting that sports brands are mostly international stars, and no matter what their popularity in the country is, compared with their overseas market share of less than 10%, it is better to say that this is a marketing strategy aimed at Chinese consumers.

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< p > but "ideal is very plentiful, reality is very skinny".

The former "leader" a href= "//www.sjfzxm.com/news/index_f.asp" > Lining < /a > has lost nearly 2 billion yuan in the whole year, which is the first time that it has lost money since its listing in 2004.

PEAK and 31st degree had double income in both operating and net income, and net profit fell by more than 30%.

XTEP, which has been enjoying high growth since its listing in 2008, is no longer in sight. Its revenue increased slightly by 10 million yuan last year, but its net profit fell 16.2% year-on-year.

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< p > < strong > analyst opinion < /strong > /p >

Peng Gangyang, an analyst at Guotai Junan international, said that at present, the performance of the entire sporting goods industry is declining. For them, the increase in advertising investment is really helpless. "P is also a death, not doing is also dead."

"If not, other brands will participate in sponsorship activities, which will also bring competition and pressure to the whole industry, and inflation will also increase the cost of publicity and sponsorship.

In addition, the direct consequence of a swarm of sponsors is a serious convergence of activities which can not impress consumers. "

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< p > Peng Hong Yang pointed out: "in the comparison of sponsorship resources, local brands should clearly see their own" a href= "//www.sjfzxm.com/news/index_s.asp" market < /a ". Besides carrying out brand publicity, we need to strengthen their core competitiveness.

Although NBA is very popular internationally, if it is not a famous star, it will be of little use to sell its players only by signing the players' endorsement.

Reporters found that the overseas market accounted for a very low proportion of local sports brand sales. PEAK's overseas market turnover last year was 388 million yuan, a year-on-year decrease of 15.5%, and overseas market share was 13.4%, of which North America accounted for only 1.1% of the total, and Lining accounted for only 2.4% of the total international market revenue.

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