Nowadays Anta sports brand opens its no. 7000 retail stores in Suzhou city, Anta is second sports brand opening retail store above 7000.
Xtep also announced on its expansion plan at beginning of this year to increase 800 to 1000 stores from current 6000 that focus on second and third tier city, and 100 overseas stores or offices. Other sports brands like peak, 361 degree have their expansion plan to open flagship store in Metropolis.
What are the reasons for domestic brands to open stores in second and third tier city, some said they take strategy according to the experience of the Chinese revolution, that is to say building rural base areas, encircling the cities from the countryside and then advancing to big city and overseas markets. But actual reason is foreign brands have monopolized the markets in first tier city, domestic brands are not strong enough to complete with them, they share low market in big Chinese cities.
As a mater of fact the second and third tier city has vast potential consumption power, domestic brands dominate these markets with their competitive price, and earn huge profit from them.
It could be a nature choice for them to make expansion on metropolis and overseas markets after consolidated their bases in small city and rural areas.
With more and more domestic brand stores opened in large city, they launch the competition with global sports brands in Chinese high-end market.
As of June 30, Anta has opened 352 retail stores in Beijing and Shanghai cities, 20% of lining stores located in large cities, and Peak will increase 200 stores in Beijing, Shanghai and Shenzhen. Because they all know only outlet and brand can chang the patern of marketing.
