An Analysis of the Transformation and Upgrading Path of China's Sporting Goods Manufacturing Industry in the Context of RMB Appreciation

Analysis of the transformation and upgrading of China's sporting goods manufacturing industry in the context of RMB appreciation: Date:2015-06-27 08:24
KeyWord : Dongning Dong ; DONG plays a pillar role in the transformation and upgrading path of China 's sporting goods manufacturing industry in the context of the appreciation of people and currency . At present, China’s economy is entering a new stage of upgrading and upgrading the quality and efficiency. As part of the manufacturing industry, China’s sporting goods manufacturing industry has also entered a critical period of development and reform. In the past two years, the RMB has re-appreciated the momentum of appreciation. The appreciation of the renminbi has formed an overwhelming mechanism for the transformation and upgrading of the sportswear manufacturing industry, which has played a positive role. However, China's sporting goods manufacturing industry still faces the challenges of optimizing the internal structure of the industry and upgrading the branded development, which requires progress to increase the increase in labor costs and the increase in international competition pressure, as well as internal and external transformation and upgrading to reshape the core competitiveness. Need to fully adapt to the renminbi appreciation trend, take the initiative to accelerate the pace of transformation and upgrading, in improving the ability of independent innovation to accelerate the pace of going out of enterprises, innovative sales model continue to extend the industrial chain to implement brand strategy and other efforts to focus efforts. After years of reform and opening up, and with years of rapid development, the supply capacity of the sportswear manufacturing industry in China has increased substantially. In terms of the introduction of capital technologies and management models, significant progress has been made. Since 2008, with the development and changes in the pattern of the world's sporting goods market, China’s sporting goods market has entered an unprecedented phase of change and adjustment after years of sustained high growth. Internal and external industry fund projects 2013 Shandong Province Art Science Key Course Research Project 2,1316, International Economics and Trade. There have been major changes in the environment, and the growth of the industry is facing a transformation and upgrading. In particular, due to the overestimation of the demand for sporting goods in the past few years and the impact of the financial crisis, the growth rate of the Chinese sporting goods manufacturing industry has gradually slowed down in recent years. At the same time, China’s renminbi exchange rate has continued to appreciate since 2005. Apart from being relatively stable in 2010, it has continued to appreciate slightly since 20 years. In 2012 alone, the renminbi’s appreciation against the US dollar has risen by 4.89. Since the 2005 exchange rate reform, The cumulative appreciation has been more than 30. The appreciation of the renminbi has reduced the export price competitiveness of China's sporting goods manufacturing industry to a certain extent, which has reduced the profitability of enterprises and exacerbated the competition of enterprises in the domestic market. In the medium to long term, the RMB exchange rate will continue to fluctuate and steadily increase in value. How to meet this environment and accelerate the transformation and upgrading has become a major lesson for China's sporting goods manufacturing industry. 1 Manufacturing of sporting goods in China The overall development status of the industry and the latest development trend The sportswear manufacturing industry involves a number of economic sectors such as sports light industry, chemical textiles and weapons, and foreign trade. In recent years, the role and proportion of sporting goods production and consumption in the national economy and social life have also risen significantly. . In 2012, the added value of manufacturing and sales of sportswear sportswear sports equipment and related sports products in China's sportswear manufacturing industry reached 198.6 billion yuan, a year-on-year increase of 9.73, accounting for a proportion of 00 of 0.37, which was basically the same as in 20 years. In 2012, the total import and export volume of China's sporting goods manufacturing industry was US$17.47 billion, with a trade surplus of 15.9 billion U.S. dollars, of which imports were US$7.77 billion, which was a year-on-year increase of 15; exports were US$16.7 billion, an increase of 4.87 compared to the same period of last year. In China, the percentage of China’s sports products exceeds 50%. With the degree of specialization in sporting goods and product quality in China, more and more Chinese manufacturers have entered the international market, accounting for more than 65 percent of the world’s sporting goods industry. At present, China's sporting goods manufacturing industry presents the following major development trends. 1.1 The overall scale of sports goods manufacturing industry continues to expand, but the growth rate continues to slow down The increase in value of China's sports goods manufacturing industry increased from 812 million yuan in 2,06 to 2,12 In the year of 193.6 billion yuan, the increase rate was close to 150, and the share in the Chinese sports industry exceeded 80. However, starting from 20 years, it was constrained by the continuous increase in costs and the lack of effective demand growth in the form of bottlenecks, as well as internal and external factors such as increased inventory pressure. Influencing, although the overall scale of the industry has maintained a positive growth trend, the growth rate of the industry's value-added growth has been above and below the extremely low value of 20 years, but the growth rate has slowed down significantly. In the year of 212, the sales of sportswear sportswear of domestic sportswear listed companies decreased by 29.7 and 19.3 respectively over the previous year. 1.2 The intensity of industry reshuffling increased and the brand concentration will improve. After ten years of rapid development, China Sporting goods manufacturing companies have shown rapid growth both in number and scale. With the continuous expansion of the development scale and core competitive advantages of leading brands in various categories, the fierce competition in the market has increased after the overall industry entered the deceleration adjustment phase, accompanied by deepening of market segmentation, changes in business models and brands. The optimization of core competitiveness, the new round of industry reshuffle is ongoing. Companies that lack the old-fashioned competitiveness will face the risk of being scouted by the market. At the same time, in the process of integrating resource innovation and development, it is possible to form a batch of industry-leading brands with international influence and lead the Chinese sportswear manufacturing industry to a new stage of development. 1.3 Rapidly rising manufacturing costs, the core competitiveness of China's sports brands is reshaping the overall growth rate of the industry for two consecutive years of low prices, and some categories have seen a significant negative growth and deterioration of core operating indicators of many sports listed companies. China's sports brands with manufacturing as the core attribute and outstanding cost performance are facing the severe test that the rapid rise in manufacturing costs and the short-term increase in the added value of brands are difficult. The sporting goods manufacturing industry needs to re-examine the market space and prospects consumer behavior characteristics and specific needs, and timely make active strategic adjustments in the strategic framework market positioning product structure pricing strategy marketing model, in order to reshape the brand core competitiveness. 1.4 The effect of industrial clusters continues to increase, and the regional economic driving effect is significant From the perspective of provinces and production, China's sports equipment manufacturing industry clusters are mainly concentrated in Guangdong, Jiangsu, Jiangsu, Zhejiang, Northern Foot and six provinces and cities in Shanghai, with an industrial concentration of over 85. The construction of sports industrial bases and the continuous implementation of supportive policies for the sports industry in various regions have led to the formation of cluster-based developments featuring key sporting goods categories, which have played an important role in the economic and social development of various regions. 2 The export effect of RMB appreciation and structural adjustment effect 2.1 The export effect of RMB appreciation The main export effect of RMB appreciation in the following aspects is absorption theory. The main idea of ​​absorption theory is that net exports or net imports are the difference between the country’s overall GNP and GDP. When the country’s currency appreciates, its domestic tradable labor resources and technology and other resources will flow to the non-tradable sectors, resulting in a decline in the international competitiveness of the tradable sector and a reduction in the country’s exports, causing a simultaneous reduction in the gross national product and the gross domestic product. The reduction in the gross domestic product is less than the reduction in the gross national product, leading to an increase in the trade surplus deficit. Absorption theory is mainly a general equilibrium analysis method. It mainly analyzes the impact of exchange rate changes on macroeconomics and uses it to analyze the impact of exchange rate fluctuations on individual industries, which is not suitable. It is elasticity. The main idea of ​​the elasticity theory is that when the Marshall Lerner condition is met, that is, when the sum of the country's export demand elasticity and import demand elasticity is greater than 1, the appreciation of the national currency will lead to a decrease in export revenue and an increase in import spending, which will eventually lead to a reduction in the trade surplus. On the contrary, devaluation of the country’s currency will improve its terms of trade. When the Marshall Lerner condition is not satisfied, that is, when the sum of the country's export demand elasticity and import demand elasticity is less than or equal to 1, the appreciation of the national currency will lead to an increase in export revenue and a decrease in import spending, which will eventually lead to an increase in the trade surplus. Elastic analysis is mainly a partial equilibrium analysis and is not comprehensive enough. It is a simple export effect. In other words, when the country’s currency appreciates, if the exporter wants to maintain its previous profit level, it must increase the foreign currency price of the exported goods. Correspondingly, the local currency of the imported goods will be reduced, causing the export growth rate to slow down and the import growth rate to rise. The trade surplus dropped. For the international trade of sporting goods manufacturing, the exchange has an important price conversion function. The change in the exchange rate of the RMB has an important impact on the quantity and scale of sports trade. Under the same conditions, the appreciation of the renminbi will increase the export prices of sporting goods in China, reduce the competitiveness of export prices, and lead to a decline in external demand. At the same time, it will also reduce the import prices of sporting goods and increase the price competitiveness of imported goods, leading to an increase in import demand. Since 2005, the continuous appreciation of the Renminbi, in particular the cumulative appreciation of the real effective exchange rate of the Renminbi, has reached 35, which is affected by the lag effect. In the year of 2,052 and 2007, China’s sportswear exports did not show a significant decline, but after 2008, the exchange rate appreciated and Under the dual influence of the international financial crisis, the growth rate of China’s sports goods exports has slowed down significantly, and export trade has been shrinking. 2.2 Structural Adjustment Effect of RMB Appreciation The structural adjustment effect of RMB appreciation has mainly increased the pressure on enterprises’ exports, forced enterprises to strengthen their internal strength, invested in technological transformation, increased investment in R&D, increased product technology content, extended industrial chain, and accelerated product structure adjustment. Steps to improve the core competitiveness of the industry as a whole, and highlight innovations in brand innovation and product management innovation. From the perspective of competition practice in China's sports goods companies, the main choice for enterprises to respond to the appreciation of the renminbi is to accelerate the pace of structural adjustment. This structural adjustment effect in the field of sporting goods manufacturing is now mainly adjusting the inventory and marketing channels in the following aspects. According to statistics, only in 2012, Li Ning Anta Pick 361 degrees special steps and other domestic six sports brand listed company inventory totaled as high as 3.3 billion, close to 5,000 stores. For example, the listed company Keke International continuously implements the store integration plan, which integrates stores with small area and high cost and low efficiency into stores with large area and high efficiency. At the end of September 2013, Meike International had a total of 871 stores, which represented a decrease of approximately 326 stores compared to the same period last year. It is to adjust the product structure and continue to subdivide the degree of market segmentation. According to the Education Statistic Bulletin published by the Ministry of Education on the 2nd year, there are more than 200 million adolescent students in the country, including senior high schools, junior high schools, and elementary schools. Students of this size will bring a very promising student population. Sports consumer market. For this reason, many sporting goods companies have begun to focus on the children's sporting goods market. For example, the 361-degree children's clothing stores in 2 and 12 years added 433 to 1590, and their turnover doubled to 370 million yuan year-on-year, accounting for 7.5 percent of the group's turnover. Xtep also stepped up the development of children's clothing business, 2,13 years online city, Added nearly 2,0 children's clothing stores. It is to adjust the business model. Many companies have shifted from the past wholesale model to the retail model, directly facing and studying consumers, and intensively nurturing consumer sentiment and loyalty to brands, and truly satisfying their needs, and pursuing refined terminal management. It is to strengthen product innovation. Many sporting goods companies have increased their R&D investment, and the number of independent innovation products has continuously increased. For example, Anta has made important achievements in product innovation. One after another introduced the soft column and luminous soft column running shoes anti-slip rubber 481! And other technology products are widely recognized and welcomed by the market. 3 The main difficulties and questions faced by China's sporting goods manufacturing industry in the context of the appreciation of the renminbi Although the appreciation of the renminbi has brought about a decisive effect on the transformation and upgrading of the sports manufacturing industry, it is difficult and questionable by various aspects such as institutional mechanisms and industrial foundations. 3.1 It is difficult for the manufacturers of sporting goods to face high export costs due to high financing costs. Due to uncertainties in the exchange rate, export suppliers of sporting goods manufacturing companies are more difficult, and the short-term trend of export orders is even more pronounced. Some sporting goods companies are affected by the appreciation of the exchange rate in 2013, and the longest period for export orders is only 15 days. Moreover, although the country’s broad money balance has reached 1 trillion yuan at the end of 2013, and the overall capital environment is relatively loose, due to the structural contradictions in the supply and demand of funds, large amounts of funds have flowed to large enterprises, and financing of financing difficulties in the sporting goods manufacturing industry remains prominent. The average financing cost of the enterprise is above, which increases the financial cost and pressure of the company. 3.2 The low level of industry concentration and the high concentration of export markets coexist Although after 20 years of severe market adjustment and industry restructuring, the concentration of sports equipment manufacturing in China has increased, according to the white paper statistics of the development of China's sports goods industry in 2012 and 2012. The concentration of China's sporting goods manufacturing industry in 2008 was 9.6, which was 5.3 points higher than that in 2007, but there is still a clear gap compared with the standard that developed economies generally exceed 40. At the same time, from the perspective of the market structure of sporting goods exports, although the number of sporting goods exporting countries in China has exceeded the total number, the export market concentration is relatively high, and the United States, Hong Kong, Japan, Germany, and the United Kingdom are respectively in front of China’s sporting goods export value. The ratio of total exports to the total amount is as high as 65. Excessive market concentration increases the risk of the export market of sporting goods manufacturing, and is more vulnerable to the impact of fluctuations in world economic growth, which reduces the ability of China’s sporting goods exports to withstand external shocks. The most serious international financial crisis since the Great Depression of the last century that took place in the past 2-8 years has caused a significant impact on China's sporting goods export industry, largely due to the excessive concentration of sports product export markets in developed economies in China. 3.3 Production costs continue to rise and profit margins generally shrink. As a labor-intensive enterprise, sporting goods companies are more sensitive to changes in labor costs. In recent years, as China's population has grown into the Lewis turning point, the demographic dividend has gradually disappeared, and rural transferable labor has become increasingly The reduction has led to a continuous increase in domestic labor costs. In particular, the continuous rise in real estate prices has produced a chain reaction, which has pushed the prices of various factors up. The data show that the cost of Chinese workers rose by an average of 2 or so in 2 and 12 years. This made most sporting goods companies located in the coastal areas face enormous labor cost pressures. At the same time, inflation also accelerated raw material prices in recent years. The rising speed of sports equipment industry bears the brunt. 3.4 Less research investment, independent innovation ability is still relatively low. Affected by factors such as talent awareness capital environmental mechanism. Overall, the importance attached to R&D in China's sporting goods manufacturing industry is still insufficient. Professional R&D institutions and personnel are scarce. The research and development of new technologies and new products is relatively small. It is in the middle of the smile curve. The added value of products is low, and there are fewer new products and patented technologies. Only a few companies have increased their investment in scientific research. In 2012, the proportion of scientific research investment in China’s sports equipment manufacturing industry accounted for less than 2% of the average sales revenue. According to international experience, only when the company’s R&D investment accounted for more than 5 percent of the company’s sales revenue did companies have stronger sustained competition. In order to survive, companies with R&D input that accounts for 2% of sales revenues of companies can only survive. Although individual domestic brands such as Taishan Sports have passed international relevant certifications and successfully entered international events such as the Beijing Olympics, there are still 50 domestic sports equipment produced by domestic companies that cannot meet the standards of international competitions. 35 Insufficient Brand Management and Shaping Capability Although in recent years, the brand awareness of China's sportswear manufacturing companies has obviously improved, and the brand strategy has achieved initial results, some international brands such as Anta Li Ning Tebu Family Taishan have emerged. However, compared to developed economies, they There is still a big gap in the branding and cultivation of supply brands. There are still a lot of distances from international brands such as Nike Adidas. Some corporate branding strategies have not achieved the desired results, and the international market brand operating experience is still insufficient. For instance, Li Ning sponsored the Hamburg Marathon in Germany. Compared to Germany's Berlin and London, the impact of the marathon was relatively small. Li Ning sponsored such a small sporting goods company and even counterfeited international famous brand products. Cases of infringement of intellectual property rights still occurred. , Damaged the image of our sporting goods company itself. 4 Recommendations for Promoting the Transformation and Upgrading of China's Sporting Goods Manufacturing Industry in the Background of RMB Appreciation In the year of 14-14, China will improve the mechanism for the formation of RMB exchange rate, increase the supply and demand of the market, determine the exchange rate, expand the floating range of the RMB exchange rate in an orderly manner, and increase the RMB exchange rate in both directions. Floating elasticity, the possibility of the RMB appreciation continues to increase. At the same time, as China’s overall economic strength and competitiveness increase, the RMB will continue to appreciate in the long term. Under such circumstances, China’s sportswear manufacturing industry should make progress, awareness of strong opportunities, and awareness of the crisis. In this regard, it should be noted that the potential for market development remains enormous. According to the statistical data of the developed countries in the sports industry, the value added of the sporting goods manufacturing industry can account for a country or region, with an increase of about 5 percent. In 2013, China’s figure reached 56.8 trillion yuan. The figure for 5 is 2.5 trillion yuan. In 2012, the added value of China’s sports goods manufacturing industry was 193.6 billion yuan, compared to the more mature foreign markets. There is still much room for growth in the enterprise. On the other hand, China's sporting goods manufacturing industry must face the changes in the external environment and the adjustment of its internal core competitiveness. It needs to change the mode of growth from extensive to brand-oriented, but also requires innovation with development concepts from China to China. 4.1 Improving the ability of independent innovation The static comparative advantage of China's sporting goods manufacturing industry was once mainly low labor costs, but this advantage is gradually disappearing, and the appreciation of the renminbi provides a more profitable space for technology-intensive products. At present, the number of international sporting goods giants investing in innovation continues to increase, such as the global casual fashion sports brand Puma, 1; Elbow has launched the first closed-loop production of the 7,16 series of footwear apparel and accessories products, the series of products Can be biodegraded or recycled. Domestic enterprises should rise to catch up, increase R&D investment, strengthen technological innovation, increase the proportion of R&D expenses and new products of scientific and technical personnel, increase the technical content of sporting goods, and improve product quality and grades. 4.2 Accelerating the pace of enterprises going out and striving to explore emerging markets Domestic sporting goods manufacturing companies should take advantage of the favorable opportunity for RMB appreciation, accelerate the pace of going out of enterprises, invest abroad, set up factories in the host country to produce and sell, or through mergers and acquisitions. The equations increase the speed of development and acquire key technologies and knowledge. Moreover, the current pattern of the international market has undergone major changes. The market for sports products in many emerging market economies is rapid and long. According to tests conducted by professional institutions of the European Monitoring Center, the sporting goods market in Russia, Ukraine and Argentina had the fastest growth in 2012. It is expected that by 2017, Russia’s sales will increase, and the country may exceed all Western European countries including Italy, the United Kingdom, France and Germany. Therefore, China's domestic sporting goods manufacturers should turn their energies into emerging markets such as Russia, Ukraine, Brazil, and India and the Middle East. In particular, Brazil, as the world’s largest country, has a large population and a huge market potential. It will also conduct a series of world competitions such as the World Cup in a few years in the context of the transformation and upgrading of China’s sports goods manufacturing industry in the absence of RMB appreciation. However, its sporting goods The industry is not mature and many products rely on imports. Therefore, the country’s market is vast. 4.3 Innovative sales model Currently, the consumer behavior of sporting goods consumers is undergoing a marked change. The so-called 8 effect has emerged. That is, consumers are now searching for product details on the Internet and then buying offline, or vice versa. Go to the physical store to experience the product and then purchase it online. The latter is the so-called exhibition hall phenomenon. Retail terminals are now under tremendous pressure and cannot compete with online sales terminals. According to the statistics of the World Sporting Goods Industry Federation, online consumption in all countries is currently increasing. In Germany alone, 13 consumer behaviors are passed through online channels, and 13 of them are online products purchased for the first time. The trend and potential are very large. With the rapid development of the Internet and new media, China's sporting goods manufacturing companies should combine the current marketing methods to reduce the investment in the marketing chain and integrate operations through multiple channels. In addition, we can explore the use of sports goods hypermarket model, extensive access to line cities to expand the market. As a multi-brand synthesis shop, the hypermarket model in the sporting goods industry, including the integrated supermarket model, is more common abroad, but it is almost blank in China. In 2013, the world's largest sporting goods retailer, Inter Sports IIC INTERSPORT, entered the Chinese market in reverse. It plans to open 80,100 stores in the South within five years. The net business area is planned to reach 10,000 cubic meters, and the cumulative sales are expected to reach RMB 4 billion. 4.4 Continuously extending the industrial chain Currently, as local sports brands are still busy digesting their inventory, Nike and other international giants have been actively embracing the industry changes brought about by the Internet, striving to bring the attributes of the sporting goods industry from manufacturing to service. The industry extends and seizes new profit growth points. In 2012, Nike cooperated with the defragmenter 81313 company to start the 6+ People 6 16131 project, encouraging entrepreneurial teams to use the + platform to develop more innovative applications, innovating the fitness curriculum booking website, and 8 event organization and management platforms, 1 Game studio, electronic tactics board CoachBase enterprise fitness management platform Sproutatwork and other innovative services. Domestic sporting goods manufacturing companies should keep abreast of this latest development trend, strengthen cooperation with related software system development companies, create new realistic technologies based on new technologies and new trends in entertainment and other fields, and conduct product exhibitions based on mobile internet terminals. Product release, etc., Strive to extend the service chain and win the initiative in the future market competition. 4.5 Implementing a Brand Strategy The appreciation of the renminbi will only affect products that mainly rely on price competition. For products that rely on brands to attract consumers, appreciation of the renminbi will not destabilize consumers' brand loyalty. China's sporting goods companies should combine their own reality, strengthen brand development and cultivation, scientifically determine the brand positioning brand image and promotional methods, extensive use of force to create avant-garde and special features as an important way to enhance the brand image and influence, learning from the sponsorship of Anta Li Ning , 4 and the Chinese Olympic Committee's experience to improve the level of sponsorship operations. 4.6 Playing the role of industry associations and forming industry competition At present, the overall scale of domestic sportswear manufacturing industry is still relatively small, adding that the entire scale is not yet big enough for Nike. Competition is not only competition within the industry, but also a competition of scale. It is necessary to strengthen industry self-discipline and management, give play to the role of industry associations in coordinating supervision and communication services, establish a sound mutual promotion mechanism, avoid vicious competition, achieve fair and orderly production, and actively implement the production standardization strategy; improve the information network for the sporting goods industry , promptly and effectively guide the development of the industry. Michael, Potter. National Competitive Advantage M. Li Mingxuan, Qiu Rumei, Trans. Beijing Beijing Huaxia Publishing House, 200269,124. Zhu Xiaoming, Zhang Yong. Sports marketing. Beijing Beijing University of Sport Press, Zhang Sen, Yang Yichen. Research on the Development Strategy of Internationalization of China Sporting Goods Industry . Journal of Shandong Institute of Physical Education, 201221823. Xia Biying. Problems and Countermeasures in Accelerating the Transformation and Upgrading of China 's Sporting Goods Manufacturing Industry . Journal of Beijing University of Physical Education, 2073740. Wu Yannian, et al. Evaluation of Brand Competitiveness of Chinese Sports Goods Listed Companies Based on Financial Report 1. Sports Science, 201013035. Li Bifang, Cao Guannan. An Empirical Study on the International Competitiveness of Manufacturing Sporting Goods Based on Diamond Models . Statistics and Decision, 20107124126. Li Sujuan. An Analysis of the Development of Sporting Goods in China in the Context of Game Theory . Chen Zirui. An Analysis of the Current Situation and Countermeasures of China 's Sporting Goods Export Trade . King Qiaojun, et al. Research on National Brand Construction of Zhegan Sports Equipment Enterprises . Body Zhang Huanbo. An Analysis of the Changing Trend of RMB Exchange Rate in Year 2 and . China Business

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