The Real Winner May Be The Sports Brand That Attaches Importance To Football Strategy.
Although China has 1 billion 300 million people (about 20% of the world's population), China's national men's soccer team currently ranks 81 in the world.
Not only that, the only World Cup in China's national men's football team is going back to the distant 2002. But now, China is going to become a football power.
This is undoubtedly a major positive news for sports equipment companies.
In March this year, the Chinese government announced that it would reinvigorate football and decouple the Chinese Football Association from the China Sports Bureau, which would help reduce corruption in an ideal situation.
In addition, the Chinese government plans to open a series of football schools to promote the development of football in the younger generation.
According to the plan, in the next 5 years, the number of football schools in China will increase from 5000 to 20000, and 50000 in 10 years.
Of course, if China can win the next World Cup, it will be better than that, but Barclays analysts believe that the real winner of China's massive march into the football world will be the sports equipment giant.
In fact, these companies have taken a place in China.
Recently, Adidas has signed a 3 year contract with China's education department to boost football's access to the campus and "hope to improve children's interest in sports activities".
"In our view, this contract should help Adidas train the next generation of soccer players in China and inspire new football fans," Easthope said.
It is coming at the right time, and the number of fans watching football matches in China is increasing rapidly.
"We believe
Chinese government
The recent sports and initiatives have provided a lot of opportunities for the development of brands such as Adidas and Puma in China.
Barclays bank analyst Vineet Sharma said.
"Adidas and China's education department recently signed an agreement aimed at launching a football training program, which is expected to become a stimulus to promote soccer development in adolescents.
We believe that this will enable football to become the fastest growing sport in China in the next 35 years, though starting from a small foundation. "
He added.
Compared with other countries, Chinese football has a huge development prospect: China has 1 billion 300 million people, but only 26 million people will participate in the football game. Less than 18 years old soccer players are only 30 thousand (2006 figures).
It is worth noting that, at the same time, the Barclays Bank gave the above prediction, mainly in the US and Europe.
Equipment company
We are worried about the performance of the Chinese market and attribute the poor revenue in the third quarter to this.
However, despite the recent fluctuations in China's economic situation, the international sports brand seems to have not been affected, nor do they think its development in China will stop.
Sports and lifestyle are becoming more and more popular among Chinese consumers. They are willing to spend money on international famous brands such as Nike, Adidas and Puma.
Analyst Julian Easthope wrote.
It is worth mentioning that Nike's revenue in the third quarter of the Chinese market surged by 30%.
Nike
It has become a sponsor of China's national football team.
In addition, according to Barclays Bank analysis, Adidas's second quarter earnings report shows that the company's overall revenue in China has increased by 19%.
Easthope pointed out that "Adidas and Nike occupy a dominant position in the football equipment market of 5 billion US dollars (31 billion 764 million yuan) a year. Meanwhile, Adidas set a record of 2 billion 100 million euros (14 billion 331 million yuan) in the sales of football equipment in 2014."
If more Chinese come into contact with football, these enterprises will undoubtedly get more profits from it.
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