Assessment 1
Lecturer: Daryl
Words:1110
At present, the Chinese government is actively implementing reforms to support the development of the sports industry, including the national fitness program to be implemented by 2020(Tuchman, 2017). This bodes well for a big potential market in sporting goods. According to a study of wealthy Chinese consumers, between 16,000 yen and 41,000 yen a month, they spend at least 2,000 yen a year on sports equipment (Thibuad, 2016). The consumption of sports goods by urban residents is gradually developing to middle and high grade, forming new demands. According to euromonitor international, China's sportswear market will overtake the luxury goods market and grow at a double-digit rate to 280.8 billion yuan by 2020(Thibuad, 2016). The sports market is still in its infancy. With the transformation of people from material pursuit to spiritual pursuit, the influence of leisure sports consumption will also expand.
According to the statistics of the Chinese basketball association, there are 300 million active basketball players in China(Weinswig,2018). President Xi Jinping hopes to build 70,000 new football stadiums by 2020 and vigorously promote cooperation with international associations and clubs(Tuchman, 2017). The increasing number of people playing basketball and football has led to a growing market for sports apparel and shoes. China's sports consumption has taken on new characteristics, with the mass consumption of minority groups and the demand for differentiated and professional customized services beginning to emerge(Chyxx.com, 2018). In addition to traditional sales of fashionable sports equipment and matching clothes, Stars sports goods store can also provide DIY design for customers. Contemporary the youth that pursues vogue likes to be out of the ordinary, the decorative pattern pattern that adds him to like for the sneaker that oneself like, ball shirts, and this kind of consumption concept is in increasingly mature. All of those can be done by 3D printer.
China's sportswear market grew 12 percent to $31.4 billion in 2017, making it the world's second-largest after the United States, according to euromonitor international. The market is expected to grow at an average annual rate of 11 percent over the next five years(Tuchman, 2017). Therefore, we set up Stars sports goods store to fill out a questionnaire to let customers feel more intimate service. Customers entering the store can fill in the questionnaire voluntarily, and we can design the wearing scheme from the feedback of information, so as to help them choose more suitable clothes and shoes.
The core resources of domestic large-scale sports events are basically monopolized by the government, and there is a certain threshold for private capital to enter(Chyxx.com, 2018). Ordinary sports-loving people have little access to regular events. We will create sports communication groups for customers, holding regular communication activities for them, and we will sponsor venues and provide prizes.
Marketing and sales (Kaufman, 2010)
The following tables will show Potential consumers, what kind of publicity, the time to enter the market, market positioning, human drive and ultimately want the results.
Following Table
Potential Purchasers |
Promotion Method |
Market Segment |
Desired End Result |
Human Drive |
Market Entry |
Young people who pursue fashionable sports styles |
1. Make beautiful DIY display effect in the view of the larger site |
Demographic, Lifestyle,
Geographic
|
Let people get their own sportswear and shoes
2:Let the DIY of sports style enter the public perspective and become popular |
Acquire
Learn
Feel
|
1. Students' winter and summer vacation time |
2.Apply for discount CARDS with different strength for accumulative amount of consumption |
2. DIY printing is already have
a good technology |
3.Advertising on buses and subways for Someone who loves sports |
3. Have sufficient inventory and complete commodity supply chain |
4. Using We Chat's function of sharing with friend and collect enough praise, there will be a discount |
|
|
|
Value Delivery(Kaufman, 2010)
Our bottleneck may be the quality effect of DIY products. This requires great craftsmanship and perfect detail. To exceed customer expectations, we purchased the most professional 3D printers on the market and hired process technicians who have worked in the manufacturing industry for more than 20 years. After - sales service plays the role of customer satisfaction and customer retention, it can produce loyal customers(MSG, ND). Complete after-sales service will also let customers feel our sincerity. Product delivery service, unsatisfactory refund and modification service and intimate warranty service. It also improves our competitive advantage.
Organization(Ebert, R. J. &Griffin, R. W. ,2017)
Functional departmentalization enables organizations to equip all key positions with functional experts and facilitate coordination and integration(Starsdunote, No date). This design makes departments to operate more effectively from one department to another. For Stars, a clear division of labor makes us especially important when face a large number of customers.
Finance
Input |
Margin |
Calculation |
Cost |
Pirce/yr |
EvStarsnce |
premises |
50% |
18300*12=¥219600 |
¥219600 |
¥ 329400 |
58.com |
SP basketball |
30% |
209*10=¥2090 |
¥2090 |
¥2717 |
JD.com |
AD basketball |
20% |
298*20=¥5960 |
¥ 5960 |
¥7152 |
JD.com |
NK basketball |
20% |
499*10=¥4990 |
¥ 4990 |
¥ 5988 |
JD.com |
LN soccer |
40% |
105*10=¥1050 |
¥1050 |
¥1470 |
JD.com |
ST soccer |
50% |
269*25=¥6725 |
¥6725 |
¥10087.5 |
JD.com |
AD soccer |
30% |
382*10=¥3820 |
¥3820 |
¥ 4866 |
JD.com |
3D printers |
60% |
9999*2=¥19998 |
¥19998 |
¥31996.8 |
JD.com |
coat hanger |
40% |
207.8*10=¥2078 |
¥2078 |
¥2909.2 |
JD.com |
Shoe rack |
40% |
724*10=¥7240 |
¥7240 |
¥10136 |
Taobao |
uniform |
50% |
168*20=¥3360 |
¥3360 |
¥5040 |
Taobao |
Sports trousers |
40% |
419*20=¥8380 |
¥8380 |
¥11732 |
TMall |
cash register |
10% |
2288*1=¥2288 |
¥2288 |
¥2516.8 |
TMall |
Salary |
shopping guide |
0% |
5000*5=¥25000 |
¥25000 |
¥25000 |
Ganji |
shop manager |
0% |
8000*1=¥8000 |
¥8000 |
¥8000 |
Ganji |
Process technician |
0% |
6000*2=¥12000 |
¥12000 |
¥12000 |
58.com |
Analyst |
0% |
6000*1=¥6000 |
¥6000 |
¥6000 |
58.com |
Total |
12% |
¥338579 |
¥338579 |
¥417736.8 |
|
Taking the exclusive store of 60 square meters as an example, the total investment is 750,000 yuan, and the annual gross profit is about 650,000 yuan(Qudao.com, 2012). Comparing with other sports shop, we have a lower margin. As our store is located at the most prosperous Chunxi road stage in Chengdu, we expect to have 800 customers for consumption every month. The consumption of per person is 522.7 on average.
External Environment(Ebert, R. J. &Griffin, R. W. ,2017)
E-commerce platforms are the main competitive forces. Sports goods stores are easy to set up and operate on the Internet. According to the questionnaire, 43.27% of consumers think that commodities in stores are less diversified than e-commerce platforms(Song,Y and Xiaoou,L, 2013). When the variety of sports goods is limited, it is difficult to implement differentiated marketing strategy. Our advantage is DIY design, different ideas will create different products. It gives customers a sense of participation and creativity. All of new fashion goods will come from the official sources, which is guaranteed. Our diversified marketing programs and the way we focus on customer experience will attract different types of customers.
Reference list
Tuchman. R(2017). The Rise Of China's Sports Economy [Online].Available from: https://www.forbes.com/sites/roberttuchman/2017/08/04/the-rise-of-chinas-sports-economy/#5eb74b684a22 [Accessed:Dec 1, 2018]
Weinswig.D(2018). Millennials, A Pro-Sports Government And Big Sports Events Drive The China Sportswear Market [Online].Available from: https://www.forbes.com/sites/deborahweinswig/2018/09/17/millennials-a-pro-sports-government-and-large-sports-events-drive-the-china-sportswear-market/#74138b29796c [Accessed:Dec 1, 2018]
Thibuad (2016). Sportswear industry in China: Athleisure blazing a new category in luxury fashion lines [Online].Available from: http://daxueconsulting.com/sportswear-industry-in-china/ [Accessed:Dec 1, 2018]
Thyxx.com(2018). Analysis on the development of Chinese sports industry [Online].Available from: http://www.chyxx.com/industry/201801/603685.html [Accessed:Dec 1, 2018]
Song,Y and Xiaoou,L (2013). The survey of consumer behavior of educational products shows that e-commerce stores account for the mainstream and encounter bottlenecks [Online].Available from: http://blog.sina.com.cn/s/blog_bf8d44900101kafz.html [Accessed:Dec 1, 2018]
Starsdunote(No date). Functional Departmentalization: Advantages and Disadvantages[Online].Available from: https://Starsdunote.com/functional-departmentalization [Accessed:Dec 1, 2018]
Qudao.com(2012). Functional Departmentalization: What small business is good profit doing now?Sporting goods stores make money! [Online].Available from: http://yundong.qudao.com/news/3894542.shtml [Accessed:Dec 1, 2018]
MSG(ND). After Sales Service / Customer Service
[Online].Available from: https://www.managementstudyguide.com/after-sales-service.htm [Accessed:Dec 1, 2018]
Kaufman, J (2010). THE PERSONAL MBA: A World-class Business Education in a Single Volume. 1st edition. England: Penguin Books Ltd.
Ebert, R. J. &Griffin, R. W. (2017). Business Essentials. 11th ed. England: Pearson Education Limited.
Price
https://cd.58.com/shangpu/36352853963907x.shtml?iuType=j_2&PGTID=0d306b35-0006-6fad-8c7a-c8fd3b041fc8&ClickID=4 premises
https://item.jd.com/4875312.html?jd_pop=93a28d5b-8e28-4ae5-b04b-eca6dfb193a5&abt=0 SP basketball
https://item.jd.com/6438549.html AD basketball
https://item.jd.com/1207003304.html NK basketball
https://item.jd.com/3537651.html LN soccer
https://item.jd.com/8710920.html ST soccer
https://item.jd.com/8710920.html AD soccer
https://item.jd.com/5334278.html 3D printers
https://item.jd.com/38277334188.html coat hanger
https://item.taobao.com/item.htm?id=580707542746&ali_refid=a3_430673_1006:1122469194:N:%E9%9E%8B%E5%BA%97%E9%9E%8B%E6%9E%B6:353fbd204f5509aa9e0779b6d1a4e0dc&ali_trackid=1_353fbd204f5509aa9e0779b6d1a4e0dc&spm=a2e15.8261149.07626516002.12 Shoe rack
https://item.taobao.com/item.htm?spm=a230r.1.14.162.6dae2304BShZDQ&id=581706010413&ns=1&abbucket=11 uniform
https://detail.tmall.com/item.htm?spm=a220m.1000858.1000725.22.596b6fdea5znc9&id=559027311201&skuId=4067080314968&user_id=772352677&cat_id=2&is_b=1&rn=1ef6842ccbcf0dce02bfb9444337be3a Sports trousers
https://detail.tmall.com/item.htm?spm=a220m.1000858.1000725.15.790f66e397OyJR&id=560477911942&skuId=3501254776371&user_id=2775004291&cat_id=55854006&is_b=1&rn=5be35454d56da0c223900e2ebcb03473 cash register
http://cd.ganji.com/zpbaihuolingshou/3600161865x.htm shopping guide
http://cd.ganji.com/zpbaihuolingshou/35034863862604x.htm?remote_source=1 shop manager
https://cd.58.com/zpshengchan/32403456975171x.shtml?psid=195363858202376922393635123&entinfo=32403456975171_j&ytdzwdetaildj=0&finalCp=000001250000000000000000000012340300011_195363858202376922393635123&role=3&iuType=j_2&PGTID=0d309713-0006-6389-2220-67bc5e Process technician
https://cd.58.com/jinrongtouzi/36260567672730x.shtml?psid=112371551202378708585433401&entinfo=36260567672730_j&ytdzwdetaildj=0&finalCp=000001250000000000000000000000000000_112371551202378708585433401&iuType=j_2&PGTID=0d305a9a-0006-6925-0421-e756c4798ca1&Cl Analyst
Appendix
Song,Y and Xiaoou,L (2013) http://blog.sina.com.cn/s/blog_bf8d44900101kafz.html
43.27% of consumers think that commodities in stores are less diversified than e-commerce platforms.
Qudao.com(2012) http://yundong.qudao.com/news/3894542.shtml
Taking the exclusive store of 60 square meters as an example, the total investment is 750,000 yuan, and the annual gross profit is about 650,000 yuan
Thyxx.com(2018). http://www.chyxx.com/industry/201801/603685.html
China's sports consumption has taken on new characteristics, with the mass consumption of minority groups and the demand for differentiated and professional customized services beginning to emerge
The core resources of domestic large-scale sports events are basically monopolized by the government, and there is a certain threshold for private capital to enter