The slowdown in China’s economic growth may have a direct or indirect impact on the domestic sporting goods industry. So, how is it currently affecting the Chinese outdoor industry? At this stage, decision-makers in the Chinese outdoor industry do not think it necessary to be pessimistic. The macroeconomic problems currently have little impact on the outdoor industry, and consumer demand has not changed and remains strong.
Recently, ISPO.com interviewed Mr. Pang Tao, Vice President of Sales for Wild Rampage. Extreme Home is a Chinese distributor of outdoor brands such as American backpacker Osprey.
Mr. Pang Tao, Vice President of Sales, Wild Rampage
Q: How do you see the positioning of Osprey in the Chinese market? What is your opinion on the competition in the market?
Pang Tao: About 13 years ago, Osprey first entered the Chinese market. At present we have laid a solid foundation for this brand. The Chinese outdoor market has developed in a very short period of time. Brands that focus on corporate culture and product quality can all find good opportunities in this market. In 2013, Osprey began to change its brand image from a high-end backpack brand to an economic brand. This is Osprey's most direct response to changes in the industry and domestic market trends.
China's outdoor industry has only just emerged
Pang Tao: Speaking of Osprey's development, I would like to point out that China's outdoor industry has only just emerged, and we have only just touched the real purchasing potential of Chinese consumers. For us, how to tap and cultivate long-term growth potential is a more important challenge. In China, competition is an interesting topic. I firmly believe that there is no real opposition in such a market that is so young and has such a large volume. There are only "industry partners" that are constantly joining. We share the market. This is a healthy market signal, which means that the cake in the market has become bigger.
At the same time, these "industry partners" have brought us inspiration, because like us, many brands they represent are striving for higher growth. In the backpacking industry, there is actually no real competition. At this stage, we have many potential target markets that need to be developed. According to our survey of more than 200 retailers and a large number of customer feedback, Osprey is currently one of the most popular backpack brands in China.
Q: Which sales channel do you prefer? Independent dealer? Brand shop? Department store? What is your strategy in the Chinese market?
Pang Tao: Our main channel in China is a large outdoor specialty shop: bicycle shops, running supplies stores. E-commerce is also an important channel we are developing, such as Lynx and Amazon. From the beginning of this year, we began to plan to expand department store outlets. In the next six months, Osprey will be available in the core shopping malls in major cities. The Chinese market is very special, with a large geographical area and a large population.
2016 Goal: To enter the mall
Pang Tao: However, the special nature of the market has also brought some serious problems, such as economic imbalances, logistics and information dissemination. These challenges require us to do specific brand management and propose targeted market solutions. We are in full swing to negotiate with key outdoor retailers and key retailers in cycling and running sports to strengthen our relationship with these stores. In the next step, we will focus more on shopping malls targeted by target consumers.
Q: Did you feel the pressure caused by the slowdown in China's economic growth? What impact will the current economic situation have on your pricing and competition?
Pang Tao: Indeed, China’s big economy has been affected in several ways. For example, media coverage of the economic slowdown has affected many industries. In addition, the recent fluctuations in exchange rates have also had a negative impact on imported goods. We are considering increasing retail prices and improving internal management to control cash flow.
Slow time between economic slowdown and consumer reaction
Pang Tao: Compared with the sales data of last year and this year, we found that Osprey's sales revenue is increasing. We believe that the economic slowdown may be macroscopic in some respects and it will take some time before it affects the public’s life. In our view, the demand for tourism and sporting goods is still growing rapidly, and more and more people are beginning to participate in outdoor sports. We should seize the opportunity to optimize management, strengthen expenditure management, maintain advertising and promotional investment, and strengthen the brand's dominant position.
Q: How do you evaluate ISPO SHANGHAI and your harvest at the show? Is ISPO BEIJING different in terms of retailers/viewers during the winter?
Pang Tao: ISPO SHANGHAI allows us to reach many people and customers in different fields. Relatively speaking, ISPO BEIJING prefers winter sports, but in fact, spring and summer are the best season for outdoor sports. Therefore, ISPO SHANGHAI is a good supplement to ISPO BEIJING. We have noticed that the last ISPO SHANGHAI (2015) has initially assembled water sports, running fitness, outdoor sports, sports travel, extreme sports, and sports trends to form a truly diversified exhibition. This is ISPO's first initiative. of. There is a saying in China that everything is difficult at the beginning. Obviously, the start of ISPO SHANGHAI is not bad.
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