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Enhance Sporting Goods by Brand--- Shanghai Double Happiness Crown CitySporting Goods Co., Ltd
2005-10-27 15:56:15

As a traditional Chinese sports brand, during the past years of development, Double Happiness can be often seen in many international matches such as the Olympics and the World Table Tennis Championships. And on the other hand, the growth of many world-class players has close relation with Double Happiness. As the former brand of the sporting goods, Double Happiness has become the focus of sporting goods industry in China with its unique characteristics and strong potential.

Double Happiness can be dated back to 1959. In order to use the sporting goods manufactured by our own in the 26th World Table Tennis Championships ---- the first international match held by China----the former Shanghai Table Tennis Factory cooperated with others to successfully developed sporting goods for table tennis named “Double Happiness”, which met the advanced standard and the requirements of the international matches.

However the long period of planning economy in China separated the belonging of the brand, which made it hard to bring about the intensive brand influence. In 1995 “Double Happiness” began the reconstruction of the system: merging those separate “Double Happiness” manufacturers of less than three or four hundred employment together into Shanghai-HK co-funded Shanghai Double Happiness Crown City Sporting Goods Co., Ltd. Oriented by the market and dependent on cooperation and technological improvement, and with the implementation of brand management and diversification strategy, “Double Happiness” has within less than 10 years developed substantially into a enterprise of production and sales of “Double Happiness” sporting goods. The sales income increases steadily with the total volume of 2003 three times more than that of 1995, among which the foreign exchange income is even 5 times of that of 1995. By adjustment of strategies and flexible application of them, Double Happiness has been booming with an unprecedented promotion of its brand popularity.

Adhere to the brand development

The competition between enterprises has turned from tangible assets to intangible ones that is competition of ideology. Double Happiness has always adhered to keeping the brand as the core competitive strength of its development and always stressed the strategy of “Strong brand for strong sports”.

Brand is different from products as it has potential to go beyond the life period. However the building of a well-known brand is not a one-day job of course. In some fields of consumption, many factors will affect the image of the brand in the public. The representation of the core value of sporting goods brand is to be accepted by sports players or the matches, or from a higher perspective is embodied in the promotion of sports.

At its reform in 1995, Double Happiness made it clear that the brand management would lead the development of the enterprise. In order to make the best use of the limited resources Double Happiness adopted the strategy of “Penetrating development by one single brand” to give up wisely the majority of over 1000 items of products at eh beginning stage of mergence, among which there were some items with advantages. However taking the capacity of market, perspective of development and the resource allocation into consideration, they decided to centralize their strength in developing table tennis goods. As Double Happiness was brave to break the old pattern and centralize the table tennis products, it has set solid foundation for the international expansion after the innovations to the related brand symbols and systematic application of the new brand symbol.

Insist on “Stars for market, Matches for promotion”

The strategy “Strong brand for strong sports” of Double Happiness focuses on two important features of sports: top players and top games, both of which are the direct media of sporting goods brand. While having an eye on the two, Double Happiness insists on manifesting the brand value by product originality and creation. Because product is what the players and the matches need, and the fundamental bridge between brand and the two factors as well.

Stars for market

Sports are inseparable from sports stars. Chinese table tennis has so outstanding achievements with so many sports fans caring the development of table tennis and those stars. Therefore it is quite natural to look for top players to enhance the product influence.

The purpose of using stars is to embody the brand value, to enhance the reputation of the products and the brand by their influence and thus encourage the consumption of the market. The influence of sports stars depends on his or her sports status and level in his or her fields. There is no eternal star but he the development of brand must be long-term and of relatively stable value. At the mergence of 1996, Double Happiness has chosen Deng Yaping, Liu Guoliang/Kong Linghui and Ding Song, and the National T.T.Team photo. In 1998 Wang Liqin, Yan seng were chosen and in 2000 was Liu Guozheng. At present Double Happiness has the top three of the world and 5 world champions---Wang Nan, Wang Liqin, Ma Lin, Wang Hao and Liu Guozheng. Meanwhile DHS can use the team photo of Chinese T.T.Team.

The two roles of the stars are to convey to the public the brand value and brand image, and to promote the products. The stars chosen by Double Happiness in early times were mainly to represent the brand value and image as the table tennis rackets were for the mass consumption. While now the stars chosen have direct relation with the products, for instance, Wang Liqing and the “Hurricane” series of rubber are combined to make the product promotion. In 2001 Wang Liqin used Hurricane 2 to win the Man’s Single Championship on the 46th World Table Tennis Championships and Liu Guozheng used Hurricane 3 to bring to us a classic show of Man’s Group. Top players use top products to prove their sports value in top matches, and therefore the products have been effectively advertised and promoted. As to the professional sporting goods, the using rate of series of rubber in professional teams increase from less than 15% in 1995 to the present 68% ( based on China T.T.team). In the mass market, Hurricane series of rubber adopt the double price of its rival, but still claim within the top 3 of the sales volume of series of rubber in Chinese market.

As stars are resources we must make maximum use of them to “fully deserved”. Sports stars are regarded as symbols to combine with multi-media to fully explain the value by using them on a large scale. Plane media of product package, advertisement, star cards and magazines, as well as the interactive media of Public affairs, promotion of amateur matches and press conference have been effectively employed. All of these connect Double Happiness closely with the top players. When people are proud of the championships won by our players in international matches, they will soon associate with the Double Happiness providing the top players with the excellent equipment.

As to the selection of players as the mouthpiece for the brand, Double Happiness has its own unique mechanism of selection and service system for players, and the mature operation model of exploring the commercial value of signed players. For example, the prediction of the technique, future state and perspective of the player during selection; to provide track work, adjustment and prompt service for the technique development of the player and the goods’ status for use by the panel of technology R&D staff and the market exploration staff to make the sporting goods meet the technique requirements of the player at its maximum. These efficient measures ensure the stability of sports achievements of the Double Happiness mouthpiece and also keep the development of technology going.

Promotion of matches

Promotion of matches is an integrated part between brand and sports. The same as stars for market, promotion of matches has two important roles---one is to be as the effective media to convey brand value and image, the other is to promote the product. In recently years, Double Happiness has sponsored many top international comprehensive matches and some special single matches such as 2000 Sydney Olympics, 2004 Athens Olympics and 2003, 2004 and 2005 World Table Tennis Championships, which enables DHS to play a rather important role in international table tennis sports development.

The sponsorship of Double Happiness to matches is a direct epitome of its active participation in the table tennis sports reforms. The life of sports lies in the balance development of the sport and the appreciation quality of its matches, which are two important goals of world table tennis reforms. To make contribution to the development will help build an image of leading figure. Sponsorship for matches is not only the presentation and promotion of the brand but the exhibition and promotion of its core product by the brand. The emergence of Rainbow Table broke the formulaic structure of table tennis tables and has been the most outstanding table tennis products in recent years. Combined with other creation such as the matched baffle design and the light design, Rainbow tables enhance the appreciation quality for the audience and strengthen the visual effect of TV rebroadcast to further promote the spreading of table tennis sports. 2003 World Table Tennis Championships in Paris was the first time that Double Happiness Rainbow Table was put in to use for the top world matches. Within one month after the matches the sales volume of the tables equaled the total volume of 2002.

For sporting goods brand, to promote the sports is the only and natural choice to improve its own survival environment, and is he reflection of the value of the sport. The chair of international table tennis association SHARAR commented on Double Happiness that the active participation of DHS has put in new drive for the world table tennis development. Among all, the 40mm (dia.) ball and the rainbow table are two significant milestones.

Strategic development of internationalization

The development of Chinese sporting goods brands is not confined to domestic market. Since China’s entry into WTO, “internationalize domestic market” provides good opportunity for Chinese brands to walk out. The competition of Chinese sporting goods brands is a competition for globalization. The implementation of the internationalization strategy is essential for DHS to enter the world economy and participate the international competition.  DHS has made great efforts to gain sponsorship of international games in recent years to push the market toward the world stage.

In internationalization strategy, DHS still adheres to its way of brand development and rejects the way of winning the market by low-price. DHS will continue its strategies of “stars for market, sponsorship for matches” and the diversification of products to go in for European market at its lowest cost. And different methods will be adopted according to different markets during real implementation, for instance, part of products will be designed and developed by European agencies by “produce where for sales”.

Summary

Standing on the peak of domestic sporting goods industry, DHS has put its eye on the whole international market. A tripartite situation of table tennis, badminton and weight lifting will take form in the near future. DHS will make use of the 2008 Olympics to continue its strategy of “strong brand for strong sports” and keep its strides into the world market to become an internationalized famous sporting goods brand!

   

 

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