The Development Strategy of China's Sporting Goods Enterprises Based on Consumer Surplus Theory Date:2014-12-29 14:50
The lack of brands, low technological content, low sales levels, and lack of market competitiveness are indisputable facts of China's sporting goods industry. Consumers’ recognition of domestic sporting goods is far lower than that of foreign brands such as Adidas, Nike, and Yonex. Such as the recognition of international brands. The key to increasing consumer acceptance of sporting goods is technical quality and service quality, and it is the guarantee of consumer welfare. Professor Marshall, a professor at New York University in the United States, puts forward in his book “Principles of Economics†that consumer surplus is an important measure of consumer welfare. The development of sporting goods enterprises in China must focus on the welfare of consumers and increase consumer surplus so as to increase their competitiveness in the fierce market competition.
1 Influence of product price based on consumer theory on consumer surplus Consumer surplus refers to the difference between the highest price consumers are willing to pay for a certain amount of certain goods and the actual market price of these goods. Consumer surplus is also called the net income of consumers. American management scientist Marshall thinks: The price that a consumer is willing to pay for a certain commodity is more than the total amount he actually paid[2]. Hicks argued that the consumer's interest in the monetary performance of the consumer surplus after the price reduction is to maintain the same satisfaction variable[2]. Analysing the conceptual connotation of the two, from the perspective of sporting goods companies, the essence of consumer surplus is the main means to improve customer satisfaction by increasing consumer surplus, and the first is to maximize the willingness of consumers to pay for the price of goods. That is to say, he feels the maximization of the value of the grant; on the other hand, the company must increase the production efficiency and reduce the operating costs so that the product will gain price advantage in the competition at a lower price. However, the price war may cause vicious competition. Therefore, for enterprises, the most effective way is to increase customer value. That is to improve customer perceived value to reduce customer perceived costs, and further increase consumer surplus, thereby enhancing customer satisfaction.
1.1 The impact of the decline in the price of sporting goods on the consumer's surplus When the price of sporting goods falls from P1 to P2, the surplus of consumers increases from the original a to the bc part, when the price is closer to the company's product cost price P0 With the increase in the sales volume of products, the higher the value of the transfer to consumers, the higher the def. That is, the lower the cost price of the product, the higher the value of the transfer to the consumer. However, looking at Figure 1, it can be seen that as the product price decreases, the closer to the cost price of the product, the smaller the new consumer surplus, the smaller the increase in the sales volume of the product, which shows that with the price of the product When prices are reduced, consumer surplus will decrease or even disappear as the gratification they acquire when purchasing the product. At this time, the sales volume of the product does not necessarily increase, and even the opportunity for decline will be difficult for the enterprise to realize. Expected target profit.
1.2 The impact of rising product prices on consumer surplus in sporting goods companies is vice versa. The lower the cost price of products, the greater the company’s ability to maximize its own profits while allowing consumers to have greater value. Figure 2 shows that when the price of a product rises from the cost price P0 by the price P1, the producer surplus of the company is ba, and the surplus of the newly added producer is c, and when the price rises to P2, the producer surplus of the company is an adb part map. 2. The surplus of newly added producers is efc. The surplus of producers increases the def. The increase of producer surplus means that the company gains profits. This means that the lower the cost price of the product, the higher the price of the product for the enterprise. At the same time, increasing consumer surplus offers more potential.
Through the above analysis, under the conditions of equal product quality and other conditions, the lower the market price of the product, the greater the consumer surplus that the sporting goods company offers to the customer, and the market price of the product depends on the level of the product cost. For any sporting goods company, its ultimate goal is to obtain the maximum profit, and the most fundamental factor in determining its profit maximization is the cost of the product of the enterprise. The lower the cost, the greater the space for the enterprise to obtain profit, in other words, the enterprise The operating space for pricing the prices of products is also greater, and the higher the controllability of the use of price adjustment by enterprises to increase consumer surplus, the higher the cost price is the minimum economic limit for the formulation of commodity prices. For sporting goods companies themselves, in order to achieve the goal of lowering cost prices and increasing consumer surplus, it is necessary to establish a sound market research mechanism, independent innovation, and use advanced technology to continuously launch high-quality brand products that satisfy customers. , And the brand's sales service, that is to improve consumer satisfaction with the goods, in order to reduce consumer perceived costs of goods, in order to achieve a true sense of improving consumer surplus, to obtain the goal of maximum profit.
2 Based on the discussion of consumer surplus, the development strategy of China's sporting goods companies from more than 100 exhibitors from the 1st Xi'an China Sporting Goods Fair in 1993 to more than 1,000 domestic and foreign exhibitors at the Beijing Body Expo 2010[3][ 4] China's sporting goods industry has gone through a history of development from small to large, from imitation to innovation, from planning to market, from closed self-sufficiency to international markets, and Li Ning and other local brands are moving towards scale, specialization, and industry. Development. However, in the domestic market, high-level sporting goods consumption is still dominated by foreign companies such as Nike, and gradually penetrates into the mid-range market. Li Ning and other domestic brands are only in mid-range consumer status and are still in a position compared with world brands. Very backward state. How to upgrade the taste of China's sporting goods companies and realize the shift from middle- to low-end consumption to high-end consumption is a top priority for China's sporting goods companies. The theory of consumer surplus holds that companies should plan to provide quality benefits to consumers by providing them with necessary or additional benefits. From the perspective of the company, companies should improve product sales through continuous technological innovation and production innovation. The quality of service, the reduction of the cost of the product, the increase in consumer surplus and producer surplus, not only satisfy the customer, but also achieve the goal of the company to obtain the maximum profit.
2.1 To increase the expected psychological value of customer's consumption by the quality and technological content of products. Thomas Thomas, an American management theorist, believes that in order to establish a competitive advantage in a competitive environment, companies must continuously introduce new products as a key to achieving their goals. s method. According to the marginal utility theory of the theory of consumer surplus, in the market economy, as the time passes, when the satisfaction of a consumer to consume a certain product is small enough or disappears, the customer will choose a new alternative. To meet their own consumer desire, that is, consumers always want to be able to consume high-quality, high-service new products.
The technological innovation of sports products is the source of sporting goods companies to meet consumer demand and improve their market competitive advantages, and the innovation of production technology is a means for companies to reduce production costs and increase consumer surplus.
The continuous innovation of sports product varieties and the ever-changing science and technology contained in it are the key to the sporting goods companies' promotion of consumers' expected psychological values, and they are always at the high end of the production value chain. The well-known sportswear brands in the world, such as Nike Sports Research Laboratories and advanced product machinery groups, spend as much as US$20 million each year on new product development and testing. At the same time, Nike has spared no expense in purchasing other fields suitable for sporting goods. New materials and technologies, such as air-cushion technology, Nike air-cushioned shoes can maximize the shock of intense exercise on the blood vessels of the foot and the brain, occupying the market of basketball shoes 60, Nike now has more than 9000 styles of clothing, 900 models of sports shoes , And there are a large number of new models available each year [5]. R&D is the core strategy of Adidas, another internationally renowned brand. It has three major R&D centers in the world and has established a new technology innovation team with more than 1,500 researchers and at least one major innovation each year. In 2003, Adidas set up a mass customization system to design special shoes according to the customer's different conditions, personal preferences and requirements [6]. Based on market research and research and development supported by science and technology, Adidas and Nike have always been at the forefront of the industry with their leading advantages in product technology.
However, domestic similar sporting goods companies mainly deal with raw materials processing or OEM production for international brands, and they lack a high-tech, high-value-added product. According to statistical data, about 50 of the sporting goods exported by China belong to the processing of incoming materials, 40 belong to the general trade, and very little are exported by domestic brands [6]. Zhu Zhenjun investigated 104 private sporting goods enterprises in China. 9 companies had R&D expenditure below 1 and R&D costs between 1 and 2 accounted for 48.4. Only 8.6 companies spent more than 5 R&D expenditures. , Enterprises with independent development accounted for 16.1, while in developed countries, investment in R&D expenditures for sports industry companies usually maintains 3% of their annual income, and investment in research and development costs of famous high-tech sports industry companies is as high as 10-30. The sporting goods industry is still in extensive operations and lacks self-developed core products. In terms of product innovations such as styles and cultural awareness, it lacks the highlights of attracting consumers and can not meet consumer expectations and achieve self-worth through consumption of the product. And the purpose of social status, it can not compete with well-known foreign brands, domestic high-end sports goods market almost lost.
Therefore, in the face of a fiercely competitive market, domestic domestic sporting goods companies must win the recognition of consumers and take the lead in the industry. The first task is to pay attention to the product consumption cycle, develop high-tech products, and improve products through high-quality products. Its own market competitiveness to enhance the consumer's expected psychological value of the product. Some domestic brands have gradually taken the technological innovation of their products as the core of their competitiveness, developed their own high-tech products, combined the essence of Eastern and Western cultures, and promoted their products to specialization and internationalization: In 1998, Li Ning established a local company. Since the company's first product design and development center for clothing and shoes, it has Li Ning arch damping technology platform, AT apparel technology platform and sports science research center. Its self-developed professional football, basketball, tennis, running, etc. are rich in Chinese elements. The series of products, in terms of specific technical indicators, are comparable with international brand products, and are better than international brand products in some key indicators [8]. Another brand Hongxing Erke's self-developed sports shoes GDS shock absorption system, its performance can be comparable with Nike, Adidas and other international brands comparable to the awakening of local sports goods brands, will provide a good foundation for China's sporting goods companies to enter the international market.
2.2 Enhancing Customer Consumption with Corporate Brands Product loyalty and loyalty brands not only reflect the comprehensive advantages of sporting goods companies including resources, management, talent, and creativity, but also serve as the driving force for sustainable development of enterprises, and it is also a consumer's consumption. The sum of all the feelings of the enterprise product. The theory of consumer surplus holds that the consumer surplus is the difference between the price that the consumer is willing to pay and the price it actually pays. This difference reflects the psychological satisfaction of the consumer. A good product is to make the consumer think that it has purchased. This product can get more psychological satisfaction, which is why Nike and other famous brands are much higher than other similar products, and consumers are still happy to buy. Consumers’ recognition of product brands is reflected in their continuous purchasing behavior of the products. Although consumers pay higher monetary costs, the increase in satisfaction means that consumers’ non-monetary costs are reduced. The consumer surplus of goods also increases.
In the current sporting goods brands, the United States accounts for 40 of the world's markets. China's sporting goods still account for only a fraction of the world's total sales of sporting goods [1]. The same cost is 35 US dollars for a fitness equipment, and the foreign sales price is 90 US dollars, while China's sales price is 40 US dollars; Qingdao Double Star shoes and Nike shoes manufacturing costs only 3 to 5 cents, but the market price of the two is a full 5 times [6], which shows that our country is still only Sporting goods manufacturing countries, not sporting goods production power. The gap between China's sporting goods companies and internationally renowned brands, the key to product homogeneity today is the creation of brands, which mainly include the creation of product brand culture and the creation of brand services.
The creation of brand culture represents the image of a company. It is the most basic incentive for sporting goods companies to increase customer acceptance of the company’s products. When consumers do not have enough information channels for decision support, the brand culture created by sporting goods companies is established. It is an important clue to induce him to purchase this product. In the long-term development, Nike has formed the essence of JUST DO IT brand culture, and through the company's long-term unremitting reinvention of culture and sports promotion, Nike products special brand value, that is, a symbol of consumer cultural identity, its brand Differences and core competitiveness are consumer psychology experiences based on cultural identity and social identity, which is a kind of feeling. Therefore, Nike's products are expensive. It consumes more than just a quality product in the minds of customers. It is more of a cultural value that can directly display the most personalized, creative, and dynamic products of consumers. In contrast, domestic similar sporting goods companies, like the brand Li Ning's interpretation of everything from Make it possible, are all based on corporate product marketing and the needs of cultural changes in the sporting goods market. It makes consumers feel a kind of publicity. A sense of belonging. However, compared to similar foreign branded products, domestic sporting goods are more dependent on local culture and lacking innovation in brand internationalization culture. To reach the international market, China’s sporting goods companies should base themselves on local cultural traditions and look at international culture. Flow direction, creating brand culture connotation accepted by various countries and regions.
Modern consumers not only require the high quality of the product itself, but also put forward higher requirements on the sales environment, service attitude and service methods. The establishment of a corporate brand is not only reflected in the quality of the product and the image of the company, but also reflected in the sales service. It is a reflection of the intangible assets of the company condensed in the commodity. Innovation of product brand helps consumers identify different products or services. Brand service is a manifestation of modern consumer awareness and rights protection awareness. Good services can enable consumers to gain respect, emotional communication, and personal value identification. Psychological satisfaction in terms [9]. According to the assessment of relevant organizations in the United States, the brand value of China's largest sporting goods company is only about 7 of the value of the world's top sports goods brands [10]. In our country, sporting goods brands are more representative of a name, lack of unique brand connotation, lack of demonstrated brand personality, reflected the brand value is thin, reflected in the market behavior, it becomes a low-cost vicious competition, the company’s It is not through high-quality products and high-quality services, but through low prices to please consumers, and ultimately lead to the loss of consumers, especially high-end consumers. Therefore, in the development of high-tech products, China's sporting goods companies should learn from foreign well-known enterprises such as Adidas and other advanced marketing tools, and constantly innovate their own brand services, embodied in: First, to provide customers with a comfortable shopping environment, so that customers have The feeling of being at home, the second is to increase the service content according to the changes in market demand, not only to stay on the customer's product promotion, but also to establish after-sales service on the basis of good faith, to cultivate customer loyalty to the product; Third, people are brand service The core, through the training of professional sports product sales staff, to improve the level of professional services to meet the needs of consumers at different levels and different needs, so that consumers enjoy high-quality products, but also enjoy high-quality services, so that the actual consumer spending Both consumer psychology and consumer satisfaction have been maximized to maximize consumer surplus, and gradually build consumer loyalty to domestic brand consumption.
2.3 Rational allocation of sporting goods resources and establishment of consumer surplus is the concept of corporate competitiveness. The theory of consumer surplus holds that only under the condition of maintaining quality equality, only companies that can provide the highest consumer surplus can occupy the largest market in the industry. Share, consumer surplus is a symbol of the competitiveness of sporting goods companies. The cost of an enterprise's products is an important sign of the company's profit and loss, and it is a manifestation of its competitiveness. Under the same market conditions, to achieve the goal of maximizing profit, reducing production costs is an important means for sporting goods companies to achieve consumer surplus.
The reduction of production costs by enterprises is based largely on the rational allocation of sporting goods resources. For a given price and production level, sporting goods companies can use scientific production methods to constantly adjust resource allocation and increase labor productivity to achieve Reduce the cost of production, improve the market competitiveness of enterprises, and achieve the goal of maximum profit. According to statistics from the China Industry Research Institute, the annual sales of sporting goods in China in 2007, 2008, and 2009 were respectively 69 billion yuan, 91 billion yuan, and 100 million yuan, and the compound annual growth rate of the entire industry reached 25 in China's sporting goods. The industry has a rapid development momentum. However, in view of China’s sporting goods companies, the concentration is low, the scale of production is small, the degree of specialization is low, and there is a lack of group companies. According to statistics[1], as of 2008, the enterprises engaged in sports server production in China are 20000-25000 homes have numerous companies, but only 17 products meet the national standards, and only 19 products meet the industry standards. Only 29 kinds of sports equipment and equipment have been approved by the international sports organizations as official competition equipment. In addition, due to the invasion of foreign brands of sporting goods, China's sporting goods industry has always been the lowest level of the industry value chain, namely: manufacturing or assembly link, China's sporting goods company industry does not form a production chain with the international sporting goods market. , Low competitiveness, low industrial profits. According to statistics, the average profit margin of China's sportswear manufacturing industry was 19.36, which was 5.7 points lower than that of the United States and was lower than the world average by 5. 2 [6]. With the outbreak of the global financial crisis, the international sporting goods industry has experienced a weak market. With the promulgation of new domestic labor contract laws and the increase in environmental pollution control efforts, profit margins brought about by the production or assembly of sporting goods will increase. The smaller, the higher the production cost of the company, which means that the surplus of the company's offer to the consumer is also reduced.
Therefore, in order to realize the transition from a sports manufacturing country to a sporting goods producing country, China's sporting goods companies must get rid of the status of the world's largest processing plant. On the one hand, enterprises must shape their own through continuous technological innovation, process innovation and service innovation. The core products create the brand effect of companies in the minds of consumers, and gradually upgrade the high-end links such as design and marketing of the industry from the intermediate links such as the processing of industrial value chains, and increase consumers' loyalty to their products with international brands. On the other hand, China's sporting goods companies should formulate long-term development plans, aim at integrating with the international sports goods market, nurture grouped enterprises, implement division of labor within the industry, and gradually form an industrialized and specialized production chain. To improve the product's international competitiveness in the industry.
The establishment of a market research mechanism to rationally position the product target consumer groups, especially the positioning of the brand, not only embodies the personality and image of the company’s products based on the market, but also the consumers’ purchase of branded products or enjoyment of the brand. The service, while satisfying its demand for high-quality products, allows it to display its personality and enhance its social status. Therefore, an accurate and reasonable brand positioning can enhance the market competitiveness of enterprises and expand the market share of enterprise products.
The enterprise's own advantages, target market competitors' positioning information and target market consumer demand information are the three major factors affecting product brand positioning [12]. The modern consumer concept gradually tends to individual taste. Different levels of consumers have different quality requirements and different performance requirements for the same sporting goods. The key to improving the market competitiveness of sporting goods companies is to investigate and analyze the markets and consumer groups of similar products, and select the appropriate product innovation points based on the main uses of the products and the main purchase motivations of the customers, combined with the advantages of the company's production forces. Determine the quality of the product and reasonably target the product's target consumer groups. For example, when Nike and Adidas compete in the European market, they can advertise and promote their products according to different consumer psychology characteristics of different countries in Europe: price tags are placed on shoes to satisfy the desire of French consumers. According to the different preferences of different youth levels of sports shoes in the Netherlands, to promote different products. In August 2010, while the first-tier cities maintained the middle-to-high end product market, Nike extended its tentacles to second- and third-tier cities in China. The low-cost shoes with a price of 300 yuan target the target consumer group to young people in China after the age of 90[14]. Through comprehensive market research, Nike can accurately establish the sales and marketing position of product brands around the world, thus leading to success.
It is human nature to be refreshed and refreshed, and if any brand does not regularly maintain and inject new elements, it can easily lead to the aging of the brand, which is then forgotten by consumers. However, once the concept of brand positioning is accepted by consumers, it should maintain its stability, and should not change due to changes in market competition and consumer demand. Otherwise, it will not only bring new markets to the company, but will affect the previous consumption. The loyalty of the group to the product caused the loss of consumers. At present, China's sporting goods companies have precisely the problem of ambiguous brand positioning and unclear target consumers. For example, the target consumers of the domestic leading sports products company, Li Ning, are: ages between 14 and 28, Students mainly, large and medium-sized cities, love sports, advocating trendy fashion and international trends. However, in April 2001 [15], a comprehensive consumer survey conducted by Gallup for the Li-Ning brand revealed that Li Ning’s target consumption was unclear, consumers lived in secondary cities, middle income, and heavy consumption of non-sporting goods. By. Li Ning hired international advertising company Leo Burnett to help draft a new brand awareness program, targeting the target consumer groups to young and middle-aged young people in China.
The direction of efforts has been recognized by consumers. However, at the end of June 2010, Li Ning Company Li Ning's new logo of the crossover action appeared, and the new brand slogan made the change replaced the changes that occurred to consumers. It is possible to target the core target consumer groups at the same age. After this generation. And neglected the original post-70s and post-80s consumer groups that have become the backbone of Li Ning's product business. For a brand to have a strong vitality, it needs a unique personality positioning. Li Ning's bid change has not attracted young consumers. On the contrary, due to the unclear positioning of product brands, products have not been subdivided according to sports characteristics. Designing products for the segmented market, and due to rising prices and quality issues, caused the former consumer groups to lose consumer confidence. The amount of orders in the second quarter of 2011 decreased by about 6[16] from the same period of 2010. The rebranding of the Li Ning brand was, in a sense, to get rid of the predicament of brand aging, but its positioning on target consumer groups led the company Abandoning the existing concept of brand quasi-adjustment, consumers have lost the plight of cultural reliance on the brand.
China's sports products enterprises must accurately grasp the different cultural mentality of the East and the West, further clarify the key to the brand image, and strive to use sports to create a brand image. Integrating the characteristics of the company itself with sports events, it closely links brand positioning, corporate culture, management style, and sports events to truly reflect the value of the brand. Like Li Ning, its better development strategy is to innovate two brands: a high-end brand can compete with international brands such as Nike and Adidas in the global market, and a low-end brand can compete with other local brands in the Chinese market. With Li Ning's unique personalization, creativity, dynamics, vitality and leisure and other brand connotations, it has achieved its unique brand value in China and even in the international market, and has become the point of reference for consumers' cultural identity.
Therefore, the regional culture of the market is the basis for establishing the brand positioning of sporting goods companies. To achieve the goal of brand internationalization, China’s sporting goods companies must pay attention to differences in regional culture and consumer psychology in each region in order to establish target consumer groups. Targeting consumer product innovations and achieving targeted product sales.
The lack of brands, low technological content, low sales levels, and lack of market competitiveness are indisputable facts of China's sporting goods industry. Consumers’ recognition of domestic sporting goods is far lower than that of foreign brands such as Adidas, Nike, and Yonex. Such as the recognition of international brands. The key to increasing consumer acceptance of sporting goods is technical quality and service quality, and it is the guarantee of consumer welfare. Professor Marshall, a professor at New York University in the United States, puts forward in his book “Principles of Economics†that consumer surplus is an important measure of consumer welfare. The development of sporting goods enterprises in China must focus on the welfare of consumers and increase consumer surplus so as to increase their competitiveness in the fierce market competition.
1 Influence of product price based on consumer theory on consumer surplus Consumer surplus refers to the difference between the highest price consumers are willing to pay for a certain amount of certain goods and the actual market price of these goods. Consumer surplus is also called the net income of consumers. American management scientist Marshall thinks: The price that a consumer is willing to pay for a certain commodity is more than the total amount he actually paid[2]. Hicks argued that the consumer's interest in the monetary performance of the consumer surplus after the price reduction is to maintain the same satisfaction variable[2]. Analysing the conceptual connotation of the two, from the perspective of sporting goods companies, the essence of consumer surplus is the main means to improve customer satisfaction by increasing consumer surplus, and the first is to maximize the willingness of consumers to pay for the price of goods. That is to say, he feels the maximization of the value of the grant; on the other hand, the company must increase the production efficiency and reduce the operating costs so that the product will gain price advantage in the competition at a lower price. However, the price war may cause vicious competition. Therefore, for enterprises, the most effective way is to increase customer value. That is to improve customer perceived value to reduce customer perceived costs, and further increase consumer surplus, thereby enhancing customer satisfaction.
1.1 The impact of the decline in the price of sporting goods on the consumer's surplus When the price of sporting goods falls from P1 to P2, the surplus of consumers increases from the original a to the bc part, when the price is closer to the company's product cost price P0 With the increase in the sales volume of products, the higher the value of the transfer to consumers, the higher the def. That is, the lower the cost price of the product, the higher the value of the transfer to the consumer. However, looking at Figure 1, it can be seen that as the product price decreases, the closer to the cost price of the product, the smaller the new consumer surplus, the smaller the increase in the sales volume of the product, which shows that with the price of the product When prices are reduced, consumer surplus will decrease or even disappear as the gratification they acquire when purchasing the product. At this time, the sales volume of the product does not necessarily increase, and even the opportunity for decline will be difficult for the enterprise to realize. Expected target profit.
1.2 The impact of rising product prices on consumer surplus in sporting goods companies is vice versa. The lower the cost price of products, the greater the company’s ability to maximize its own profits while allowing consumers to have greater value. Figure 2 shows that when the price of a product rises from the cost price P0 by the price P1, the producer surplus of the company is ba, and the surplus of the newly added producer is c, and when the price rises to P2, the producer surplus of the company is an adb part map. 2. The surplus of newly added producers is efc. The surplus of producers increases the def. The increase of producer surplus means that the company gains profits. This means that the lower the cost price of the product, the higher the price of the product for the enterprise. At the same time, increasing consumer surplus offers more potential.
Through the above analysis, under the conditions of equal product quality and other conditions, the lower the market price of the product, the greater the consumer surplus that the sporting goods company offers to the customer, and the market price of the product depends on the level of the product cost. For any sporting goods company, its ultimate goal is to obtain the maximum profit, and the most fundamental factor in determining its profit maximization is the cost of the product of the enterprise. The lower the cost, the greater the space for the enterprise to obtain profit, in other words, the enterprise The operating space for pricing the prices of products is also greater, and the higher the controllability of the use of price adjustment by enterprises to increase consumer surplus, the higher the cost price is the minimum economic limit for the formulation of commodity prices. For sporting goods companies themselves, in order to achieve the goal of lowering cost prices and increasing consumer surplus, it is necessary to establish a sound market research mechanism, independent innovation, and use advanced technology to continuously launch high-quality brand products that satisfy customers. , And the brand's sales service, that is to improve consumer satisfaction with the goods, in order to reduce consumer perceived costs of goods, in order to achieve a true sense of improving consumer surplus, to obtain the goal of maximum profit.
2 Based on the discussion of consumer surplus, the development strategy of China's sporting goods companies from more than 100 exhibitors from the 1st Xi'an China Sporting Goods Fair in 1993 to more than 1,000 domestic and foreign exhibitors at the Beijing Body Expo 2010[3][ 4] China's sporting goods industry has gone through a history of development from small to large, from imitation to innovation, from planning to market, from closed self-sufficiency to international markets, and Li Ning and other local brands are moving towards scale, specialization, and industry. Development. However, in the domestic market, high-level sporting goods consumption is still dominated by foreign companies such as Nike, and gradually penetrates into the mid-range market. Li Ning and other domestic brands are only in mid-range consumer status and are still in a position compared with world brands. Very backward state. How to upgrade the taste of China's sporting goods companies and realize the shift from middle- to low-end consumption to high-end consumption is a top priority for China's sporting goods companies. The theory of consumer surplus holds that companies should plan to provide quality benefits to consumers by providing them with necessary or additional benefits. From the perspective of the company, companies should improve product sales through continuous technological innovation and production innovation. The quality of service, the reduction of the cost of the product, the increase in consumer surplus and producer surplus, not only satisfy the customer, but also achieve the goal of the company to obtain the maximum profit.
2.1 To increase the expected psychological value of customer's consumption by the quality and technological content of products. Thomas Thomas, an American management theorist, believes that in order to establish a competitive advantage in a competitive environment, companies must continuously introduce new products as a key to achieving their goals. s method. According to the marginal utility theory of the theory of consumer surplus, in the market economy, as the time passes, when the satisfaction of a consumer to consume a certain product is small enough or disappears, the customer will choose a new alternative. To meet their own consumer desire, that is, consumers always want to be able to consume high-quality, high-service new products.
The technological innovation of sports products is the source of sporting goods companies to meet consumer demand and improve their market competitive advantages, and the innovation of production technology is a means for companies to reduce production costs and increase consumer surplus.
The continuous innovation of sports product varieties and the ever-changing science and technology contained in it are the key to the sporting goods companies' promotion of consumers' expected psychological values, and they are always at the high end of the production value chain. The well-known sportswear brands in the world, such as Nike Sports Research Laboratories and advanced product machinery groups, spend as much as US$20 million each year on new product development and testing. At the same time, Nike has spared no expense in purchasing other fields suitable for sporting goods. New materials and technologies, such as air-cushion technology, Nike air-cushioned shoes can maximize the shock of intense exercise on the blood vessels of the foot and the brain, occupying the market of basketball shoes 60, Nike now has more than 9000 styles of clothing, 900 models of sports shoes , And there are a large number of new models available each year [5]. R&D is the core strategy of Adidas, another internationally renowned brand. It has three major R&D centers in the world and has established a new technology innovation team with more than 1,500 researchers and at least one major innovation each year. In 2003, Adidas set up a mass customization system to design special shoes according to the customer's different conditions, personal preferences and requirements [6]. Based on market research and research and development supported by science and technology, Adidas and Nike have always been at the forefront of the industry with their leading advantages in product technology.
However, domestic similar sporting goods companies mainly deal with raw materials processing or OEM production for international brands, and they lack a high-tech, high-value-added product. According to statistical data, about 50 of the sporting goods exported by China belong to the processing of incoming materials, 40 belong to the general trade, and very little are exported by domestic brands [6]. Zhu Zhenjun investigated 104 private sporting goods enterprises in China. 9 companies had R&D expenditure below 1 and R&D costs between 1 and 2 accounted for 48.4. Only 8.6 companies spent more than 5 R&D expenditures. , Enterprises with independent development accounted for 16.1, while in developed countries, investment in R&D expenditures for sports industry companies usually maintains 3% of their annual income, and investment in research and development costs of famous high-tech sports industry companies is as high as 10-30. The sporting goods industry is still in extensive operations and lacks self-developed core products. In terms of product innovations such as styles and cultural awareness, it lacks the highlights of attracting consumers and can not meet consumer expectations and achieve self-worth through consumption of the product. And the purpose of social status, it can not compete with well-known foreign brands, domestic high-end sports goods market almost lost.
Therefore, in the face of a fiercely competitive market, domestic domestic sporting goods companies must win the recognition of consumers and take the lead in the industry. The first task is to pay attention to the product consumption cycle, develop high-tech products, and improve products through high-quality products. Its own market competitiveness to enhance the consumer's expected psychological value of the product. Some domestic brands have gradually taken the technological innovation of their products as the core of their competitiveness, developed their own high-tech products, combined the essence of Eastern and Western cultures, and promoted their products to specialization and internationalization: In 1998, Li Ning established a local company. Since the company's first product design and development center for clothing and shoes, it has Li Ning arch damping technology platform, AT apparel technology platform and sports science research center. Its self-developed professional football, basketball, tennis, running, etc. are rich in Chinese elements. The series of products, in terms of specific technical indicators, are comparable with international brand products, and are better than international brand products in some key indicators [8]. Another brand Hongxing Erke's self-developed sports shoes GDS shock absorption system, its performance can be comparable with Nike, Adidas and other international brands comparable to the awakening of local sports goods brands, will provide a good foundation for China's sporting goods companies to enter the international market.
2.2 Enhancing Customer Consumption with Corporate Brands Product loyalty and loyalty brands not only reflect the comprehensive advantages of sporting goods companies including resources, management, talent, and creativity, but also serve as the driving force for sustainable development of enterprises, and it is also a consumer's consumption. The sum of all the feelings of the enterprise product. The theory of consumer surplus holds that the consumer surplus is the difference between the price that the consumer is willing to pay and the price it actually pays. This difference reflects the psychological satisfaction of the consumer. A good product is to make the consumer think that it has purchased. This product can get more psychological satisfaction, which is why Nike and other famous brands are much higher than other similar products, and consumers are still happy to buy. Consumers’ recognition of product brands is reflected in their continuous purchasing behavior of the products. Although consumers pay higher monetary costs, the increase in satisfaction means that consumers’ non-monetary costs are reduced. The consumer surplus of goods also increases.
In the current sporting goods brands, the United States accounts for 40 of the world's markets. China's sporting goods still account for only a fraction of the world's total sales of sporting goods [1]. The same cost is 35 US dollars for a fitness equipment, and the foreign sales price is 90 US dollars, while China's sales price is 40 US dollars; Qingdao Double Star shoes and Nike shoes manufacturing costs only 3 to 5 cents, but the market price of the two is a full 5 times [6], which shows that our country is still only Sporting goods manufacturing countries, not sporting goods production power. The gap between China's sporting goods companies and internationally renowned brands, the key to product homogeneity today is the creation of brands, which mainly include the creation of product brand culture and the creation of brand services.
The creation of brand culture represents the image of a company. It is the most basic incentive for sporting goods companies to increase customer acceptance of the company’s products. When consumers do not have enough information channels for decision support, the brand culture created by sporting goods companies is established. It is an important clue to induce him to purchase this product. In the long-term development, Nike has formed the essence of JUST DO IT brand culture, and through the company's long-term unremitting reinvention of culture and sports promotion, Nike products special brand value, that is, a symbol of consumer cultural identity, its brand Differences and core competitiveness are consumer psychology experiences based on cultural identity and social identity, which is a kind of feeling. Therefore, Nike's products are expensive. It consumes more than just a quality product in the minds of customers. It is more of a cultural value that can directly display the most personalized, creative, and dynamic products of consumers. In contrast, domestic similar sporting goods companies, like the brand Li Ning's interpretation of everything from Make it possible, are all based on corporate product marketing and the needs of cultural changes in the sporting goods market. It makes consumers feel a kind of publicity. A sense of belonging. However, compared to similar foreign branded products, domestic sporting goods are more dependent on local culture and lacking innovation in brand internationalization culture. To reach the international market, China’s sporting goods companies should base themselves on local cultural traditions and look at international culture. Flow direction, creating brand culture connotation accepted by various countries and regions.
Modern consumers not only require the high quality of the product itself, but also put forward higher requirements on the sales environment, service attitude and service methods. The establishment of a corporate brand is not only reflected in the quality of the product and the image of the company, but also reflected in the sales service. It is a reflection of the intangible assets of the company condensed in the commodity. Innovation of product brand helps consumers identify different products or services. Brand service is a manifestation of modern consumer awareness and rights protection awareness. Good services can enable consumers to gain respect, emotional communication, and personal value identification. Psychological satisfaction in terms [9]. According to the assessment of relevant organizations in the United States, the brand value of China's largest sporting goods company is only about 7 of the value of the world's top sports goods brands [10]. In our country, sporting goods brands are more representative of a name, lack of unique brand connotation, lack of demonstrated brand personality, reflected the brand value is thin, reflected in the market behavior, it becomes a low-cost vicious competition, the company’s It is not through high-quality products and high-quality services, but through low prices to please consumers, and ultimately lead to the loss of consumers, especially high-end consumers. Therefore, in the development of high-tech products, China's sporting goods companies should learn from foreign well-known enterprises such as Adidas and other advanced marketing tools, and constantly innovate their own brand services, embodied in: First, to provide customers with a comfortable shopping environment, so that customers have The feeling of being at home, the second is to increase the service content according to the changes in market demand, not only to stay on the customer's product promotion, but also to establish after-sales service on the basis of good faith, to cultivate customer loyalty to the product; Third, people are brand service The core, through the training of professional sports product sales staff, to improve the level of professional services to meet the needs of consumers at different levels and different needs, so that consumers enjoy high-quality products, but also enjoy high-quality services, so that the actual consumer spending Both consumer psychology and consumer satisfaction have been maximized to maximize consumer surplus, and gradually build consumer loyalty to domestic brand consumption.
2.3 Rational allocation of sporting goods resources and establishment of consumer surplus is the concept of corporate competitiveness. The theory of consumer surplus holds that only under the condition of maintaining quality equality, only companies that can provide the highest consumer surplus can occupy the largest market in the industry. Share, consumer surplus is a symbol of the competitiveness of sporting goods companies. The cost of an enterprise's products is an important sign of the company's profit and loss, and it is a manifestation of its competitiveness. Under the same market conditions, to achieve the goal of maximizing profit, reducing production costs is an important means for sporting goods companies to achieve consumer surplus.
The reduction of production costs by enterprises is based largely on the rational allocation of sporting goods resources. For a given price and production level, sporting goods companies can use scientific production methods to constantly adjust resource allocation and increase labor productivity to achieve Reduce the cost of production, improve the market competitiveness of enterprises, and achieve the goal of maximum profit. According to statistics from the China Industry Research Institute, the annual sales of sporting goods in China in 2007, 2008, and 2009 were respectively 69 billion yuan, 91 billion yuan, and 100 million yuan, and the compound annual growth rate of the entire industry reached 25 in China's sporting goods. The industry has a rapid development momentum. However, in view of China’s sporting goods companies, the concentration is low, the scale of production is small, the degree of specialization is low, and there is a lack of group companies. According to statistics[1], as of 2008, the enterprises engaged in sports server production in China are 20000-25000 homes have numerous companies, but only 17 products meet the national standards, and only 19 products meet the industry standards. Only 29 kinds of sports equipment and equipment have been approved by the international sports organizations as official competition equipment. In addition, due to the invasion of foreign brands of sporting goods, China's sporting goods industry has always been the lowest level of the industry value chain, namely: manufacturing or assembly link, China's sporting goods company industry does not form a production chain with the international sporting goods market. , Low competitiveness, low industrial profits. According to statistics, the average profit margin of China's sportswear manufacturing industry was 19.36, which was 5.7 points lower than that of the United States and was lower than the world average by 5. 2 [6]. With the outbreak of the global financial crisis, the international sporting goods industry has experienced a weak market. With the promulgation of new domestic labor contract laws and the increase in environmental pollution control efforts, profit margins brought about by the production or assembly of sporting goods will increase. The smaller, the higher the production cost of the company, which means that the surplus of the company's offer to the consumer is also reduced.
Therefore, in order to realize the transition from a sports manufacturing country to a sporting goods producing country, China's sporting goods companies must get rid of the status of the world's largest processing plant. On the one hand, enterprises must shape their own through continuous technological innovation, process innovation and service innovation. The core products create the brand effect of companies in the minds of consumers, and gradually upgrade the high-end links such as design and marketing of the industry from the intermediate links such as the processing of industrial value chains, and increase consumers' loyalty to their products with international brands. On the other hand, China's sporting goods companies should formulate long-term development plans, aim at integrating with the international sports goods market, nurture grouped enterprises, implement division of labor within the industry, and gradually form an industrialized and specialized production chain. To improve the product's international competitiveness in the industry.
The establishment of a market research mechanism to rationally position the product target consumer groups, especially the positioning of the brand, not only embodies the personality and image of the company’s products based on the market, but also the consumers’ purchase of branded products or enjoyment of the brand. The service, while satisfying its demand for high-quality products, allows it to display its personality and enhance its social status. Therefore, an accurate and reasonable brand positioning can enhance the market competitiveness of enterprises and expand the market share of enterprise products.
The enterprise's own advantages, target market competitors' positioning information and target market consumer demand information are the three major factors affecting product brand positioning [12]. The modern consumer concept gradually tends to individual taste. Different levels of consumers have different quality requirements and different performance requirements for the same sporting goods. The key to improving the market competitiveness of sporting goods companies is to investigate and analyze the markets and consumer groups of similar products, and select the appropriate product innovation points based on the main uses of the products and the main purchase motivations of the customers, combined with the advantages of the company's production forces. Determine the quality of the product and reasonably target the product's target consumer groups. For example, when Nike and Adidas compete in the European market, they can advertise and promote their products according to different consumer psychology characteristics of different countries in Europe: price tags are placed on shoes to satisfy the desire of French consumers. According to the different preferences of different youth levels of sports shoes in the Netherlands, to promote different products. In August 2010, while the first-tier cities maintained the middle-to-high end product market, Nike extended its tentacles to second- and third-tier cities in China. The low-cost shoes with a price of 300 yuan target the target consumer group to young people in China after the age of 90[14]. Through comprehensive market research, Nike can accurately establish the sales and marketing position of product brands around the world, thus leading to success.
It is human nature to be refreshed and refreshed, and if any brand does not regularly maintain and inject new elements, it can easily lead to the aging of the brand, which is then forgotten by consumers. However, once the concept of brand positioning is accepted by consumers, it should maintain its stability, and should not change due to changes in market competition and consumer demand. Otherwise, it will not only bring new markets to the company, but will affect the previous consumption. The loyalty of the group to the product caused the loss of consumers. At present, China's sporting goods companies have precisely the problem of ambiguous brand positioning and unclear target consumers. For example, the target consumers of the domestic leading sports products company, Li Ning, are: ages between 14 and 28, Students mainly, large and medium-sized cities, love sports, advocating trendy fashion and international trends. However, in April 2001 [15], a comprehensive consumer survey conducted by Gallup for the Li-Ning brand revealed that Li Ning’s target consumption was unclear, consumers lived in secondary cities, middle income, and heavy consumption of non-sporting goods. By. Li Ning hired international advertising company Leo Burnett to help draft a new brand awareness program, targeting the target consumer groups to young and middle-aged young people in China.
The direction of efforts has been recognized by consumers. However, at the end of June 2010, Li Ning Company Li Ning's new logo of the crossover action appeared, and the new brand slogan made the change replaced the changes that occurred to consumers. It is possible to target the core target consumer groups at the same age. After this generation. And neglected the original post-70s and post-80s consumer groups that have become the backbone of Li Ning's product business. For a brand to have a strong vitality, it needs a unique personality positioning. Li Ning's bid change has not attracted young consumers. On the contrary, due to the unclear positioning of product brands, products have not been subdivided according to sports characteristics. Designing products for the segmented market, and due to rising prices and quality issues, caused the former consumer groups to lose consumer confidence. The amount of orders in the second quarter of 2011 decreased by about 6[16] from the same period of 2010. The rebranding of the Li Ning brand was, in a sense, to get rid of the predicament of brand aging, but its positioning on target consumer groups led the company Abandoning the existing concept of brand quasi-adjustment, consumers have lost the plight of cultural reliance on the brand.
China's sports products enterprises must accurately grasp the different cultural mentality of the East and the West, further clarify the key to the brand image, and strive to use sports to create a brand image. Integrating the characteristics of the company itself with sports events, it closely links brand positioning, corporate culture, management style, and sports events to truly reflect the value of the brand. Like Li Ning, its better development strategy is to innovate two brands: a high-end brand can compete with international brands such as Nike and Adidas in the global market, and a low-end brand can compete with other local brands in the Chinese market. With Li Ning's unique personalization, creativity, dynamics, vitality and leisure and other brand connotations, it has achieved its unique brand value in China and even in the international market, and has become the point of reference for consumers' cultural identity.
Therefore, the regional culture of the market is the basis for establishing the brand positioning of sporting goods companies. To achieve the goal of brand internationalization, China’s sporting goods companies must pay attention to differences in regional culture and consumer psychology in each region in order to establish target consumer groups. Targeting consumer product innovations and achieving targeted product sales.
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