Decathlon Expands Rapidly In Dongguan

The largest sporting goods retailer in the world -- France Decathlon chose to accelerate expansion in Dongguan.

Lin Zhitong, head of media relations at Decathlon China headquarters, told reporters recently that although high inventory has become a huge pressure in the industry, Decathlon has little impact. Therefore, Decathlon will open a logistics and distribution center in Southern China District in Dongguan. In the future, it plans to set up 15 stores in Dongguan, and the first choice is the town with a permanent population of about 500 thousand, such as Changan, Humen, Houjie, Changping, etc.

　　 Plans to open 15 stores in Dongguan

The first Decathlon store in Dongguan is located in Hongfu Road, Dongcheng. Reporters observed that the unit price of their products is lower than that of other foreign brands. In the Decathlon store, you can see 29 yuan of women's Yoga Pants, 49 yuan and one golf course. Polot shirt 99 yuan a pair of hiking shoes and other cheap goods.

Lin Zhitong introduced that the low unit price was determined by Decathlon's business model. In terms of products, most of the products are private brands of Decathlon, apart from a few brands Acting as agents. Its own brand accounts for more than 90% of the brand.

In addition, as the world's largest sporting goods retailer, Decathlon is part of the sports industry chain group orcis group. Decathlon from design, production, retail to logistics are integrated, seamless integrated operation.

"Decathlon" Dongcheng store is Decathlon and Dongcheng Street office after three years of negotiations, opened in late 2011. The store has more than 3600 square meters, providing 65 sports products, both Decathlon's own brand products and international famous brand products. Following the completion of the first store in Dongguan, Decathlon will open 15 stores in Dongguan in the future.

"Last year was the fastest growing year after Decathlon entered China," Lin said in an interview with reporters. Decathlon plans to open 15 stores in Dongguan in the future, with the preferred permanent residence of about 500 thousand of the town, such as Changan, Humen, Houjie, Changping and other towns.

"Big towns including Changan and Humen will become the first choice for Decathlon, but it will not exclude the possibility of other regional sites, such as Dalang." Lin Zhitong said that Decathlon has been in operation for many years, and has already had a very mature operation mode, including buying land, leasing, or sharing with large retailers.

　　 Overall consumption of sports goods industry is sluggish.

Lin Zhitong revealed that Dongguan is located in Guangzhou, Shenzhen and Hongkong, and is the economic corridor of three places. Decathlon plans to open Southern China logistics distribution center in Dongguan.

In June 18, 2012, He Yu, President of Decathlon group Greater China, visited vice mayor of Dongguan. He said he would invest $50 million in Dongguan to build a logistics center in the Pearl River Delta and surrounding provinces and cities.

Kang Pengya said at that time that Dongguan is a very potential city. Combined with the good momentum of development of the Pearl River Delta and Dongguan, it will invest 50 million US dollars to build the Southern China logistics center in Dongguan, to distribute goods to the Pearl River Delta region and the neighboring provinces of Guangdong. Now it has entered the stage of deep level cooperation.

Decathlon's aggressive expansion is particularly eye-catching in the current sporting goods industry.

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Reporters learned in the visit that sporting goods sales in Dongguan are not optimistic. Shenzhen Tianhong shopping center Limited by Share Ltd has 6 shopping malls in Dongguan, distributed in Dongcheng, Changping, Huang Jiang, Humen, Changan and Houjie street. Tianhong has an advantage in attracting investment in sporting goods industry, and famous sports brands such as Nike, ADI, KAPPA and so on are all included.

A person in charge of rainbow Hong Kong revealed that the sales volume of sports brands in 6 shopping malls in Dongguan decreased in the first quarter of this year compared with the same period last year. However, the number of sports brands dropped is not convenient and detailed. "There is a serious problem of high storage in the national sporting goods industry. Back in 2008 financial crisis After that, some sports brands already have signs in this regard. Since 2008, some brands are more willing to leave the mall and go out to do street shops in order to save costs.

Xu Zhihua, chief executive of Peak Sport Products Co Limited, has said that the sporting goods industry is facing problems of high inventory and poor demand. China's sporting goods industry has experienced an explosive growth in the past ten years, and now it has entered a stage of readjustment or integration.