According to Decathlon's results in fiscal year 20 17, China's market revenue reached 105 billion RMB. In 20 19, the global sales of Decathlon Group reached 654.38+0.24 billion euros, up 9% year-on-year, 2 percentage points higher than that of Nike Group.
Decathlon is famous for seeking stability, not radical expansion, and not obsessed with making quick money. In China, the area of each store ranges from several thousand square meters to tens of thousands of square meters. The large size also puts high demands on its site selection, which directly challenges its operational strength.
According to the monitoring data of Jihai brand, as of September 28th, Decathlon has 29 1 stores in 30 provinces 105 cities in China, of which 1 store has not yet opened.
And through the trend line of weekly stores and monthly stores, we can see that the number of Decathlon stores is very stable recently, and this steady and slow growth is Decathlon's consistent style.
It is reported that Decathlon had planned to boldly explore more third-and fourth-tier markets in 2020, and gradually transform from the suburban store model to the central city layout. In this case, we might as well explore Decathlon's store-opening cheats from another angle through Decathlon's market strategy and location preference.
According to the ranking of stores in cities and the number of stores in different cities, we find that most of Decathlon's stores are located in new first-tier cities and second-tier cities; The average number of stores in first-tier cities is the largest. Therefore, the positioning of Decathlon brand is relatively high-end in terms of distribution cities.
This is also because the first-tier market is more likely to accept the corresponding consumption scenarios that tens of thousands of SKUs can find in the first-tier market, from basic sports and fitness products to equestrian, golf and other minority sports equipment.
Judging from the store type structure diagram, Decathlon stores account for a large proportion in shopping centers.
To sum up, Decathlon's location strategy will give priority to shopping areas in first-tier and new first-tier cities, and it is unlikely that residential areas and office buildings will appear.
Let's look at the overall situation of the sporting goods industry.
By comparing the total number of stores in the same industry, the area of a single color block represents the number of stores in this brand; It can be seen that Li Ning has the largest number of stores in the industry, while Decathlon is in the middle of the industry.
As a result, we also drew up the ranking of the number of brand stores in the industry in September. At present, Li Ning, which ranks first in the whole industry, has 6,647 stores nationwide, ranking first; Recently, the number of stores in Vance has increased rapidly, with an increase of 65,438+00 stores per month. Decathlon and Olong Expo have added 1 store, and the number of other brands in the industry is stable.
Through the line chart of the number of stores of eight brands in the sporting goods industry in the last month, we can see that the number of stores in the industry fluctuated slightly in the last month, but the number of stores in the industry has increased in recent days. This is also the reason for approaching the Eleventh Golden Week.
Decathlon's growth rate and the total number of stores are not the best, but they are better than one. With such a large volume, the whole product is self-operated, which once again proves that its business model and operational ability are extremely outstanding.
Then, will such an excellent Decathlon be limited by its size and store size?
Let's first see which "good friends" it prefers to stand with.
When we make statistics on the 500 meters around Decathlon's national stores, we find that these brands often appear around Decathlon, which is Decathlon's "good friend" brand.
These brands include KFC, Watsons, Starbucks, Juewei Duck Neck and other consumer brands. Adidas, Jack Jones and Hot Air appear in the friends list of sports or clothing brands.
In order to be more targeted, we choose Shanghai, which has the largest distribution of Decathlon stores, for statistics. The size in the above figure represents the coverage rate, which can be understood as the degree of correlation. The thickness of the gray arrow line represents the possibility of this law.
Within 500 meters around Decathlon, Shanghai, it is found that these brands in the above picture often appear, among which the most closely related brands are Starbucks, KFC and Laiyifen.
According to the good friends around Decathlon, we put forward a hypothesis that the target brand of the study should also appear around the combination of good friends and good friends.
Then, based on this assumption, we first extract the areas where "good friends" stores appear, and filter out the areas where the target brand stores exist, leaving the areas where the target brand should have appeared but did not appear, which is Decathlon's "blank market".
The distribution of Decathlon's blank market in Shanghai (the darker the color, the closer it is to the center of the blank market)
The picture shows Decathlon's blank market distribution in Shanghai. The darker the color, the closer it is to the center of the blank market, and the area surrounded by the dotted line is the accurate blank market. It can be seen that there are many blank markets in Shanghai, and they are scattered, but whether there are enough storefronts in these areas is the key.
Based on Decathlon's good friend relationship, we locked in Adidas, a brand that is also a sporting goods industry, as a reference to observe its location preference.
Comparing the number of stores in Decathlon and Adidas in the past month, the number of stores is relatively stable, while the number of stores in Adidas fluctuates slightly.
Judging from the number of stores opened and closed, Adidas has three closed stores, while Decathlon has only 1 closed stores, both of which are in good operating condition.
From the comparison of the number of provinces and cities covered, Decathlon has a wider business coverage than Adidas. But in fact, the total number of stores is more than Adidas, indicating that it needs more city stores than Decathlon.
Furthermore, by comparing the distance of Adidas stores within the range of Decathlon 1 000m, the current average distance is 3 16m, and there are 1.03 Adidas around each Decathlon store, which is likely to be adjacent, and the competition is direct but not intense enough. When they met, the occupation rate was about 77.5%, which was at a high level. Explain that when they met, Decathlon and Adidas had similar store location conditions.
The specific location preferences of Decathlon and Adidas can be clearly seen from the five indicators of business environment, population, transportation, real estate, commerce and consumption.
In terms of population, Adidas stores cover a larger total population and have a higher population density.
In terms of transportation, the traffic near Decathlon is relatively smooth, and the traffic near Adidas is convenient.
In terms of real estate, the price level around Adidas stores is significantly higher than Decathlon; Decathlon hardly goes to the office area to open a shop.
In terms of business, Adidas' business indicators are obviously better.
In terms of consumption, the consumption index near Adidas is higher than Decathlon.
On the whole, Adidas is better than Decathlon. Decathlon's choice space is not as big as Adidas due to the demand of store area, but it takes into account the rigid requirements of traffic access.
Decathlon has always had strict store location standards. Decathlon didn't choose the core business district in the city location, and it was basically located in the business district with convenient transportation or the suburbs with many residents.
The location of each store must be strictly in accordance with the standards, providing customers with the most convenient transportation, strong visibility of the store, free sports venues and large enough free parking lots, so that customers can feel the fun of sports at any time.
It is reported that the total scale of China's sports industry currently exceeds 3 trillion yuan. Only when the market is large enough can large companies be produced. China is now Decathlon's second largest market. Faced with the current 80% share of sports brand market and 20% share of mass market, Decathlon chose the latter. In the next decade, it is expected that the mass sports market will mature to 50% market share.
Recently, Decathlon was hungry after signing up for Tmall. Although it started late in the collision between offline and online, fortunately, the foundation is solid enough.
We also expect Decathlon to show signs of rapidly expanding its stores next year after this year. After all, the concern for health has brought us closer to sports.