Competitor Analysis

Prior to 1994, China had no environmental NGOs. The very first was registered in March 1994, Academy for Green Culture, now renamed Friends of Nature. More have followed, with Global Village of Beijing, and Green Home, becoming the pioneer NGOs in environmental area in China. Since then 2000 environmental NGO’s have been put in place with millions of contributors (China 2019).

The NGO’s are also taking key parts in legislation making influence. Many NGO’s such as the Friends of Nature have dedicated their times to making laws based around environment and the following have resulted from their efforts.

Environmental Protection Law. Wild Animal Conservation Law. Environmental Impact Assessment Law. Atmospheric Pollution Prevention and Control Law. Water Pollution Prevention Law.

As the highest growing apparel segment in China, the biggest competitor are Nike, Adidas and Li Ning.

Nike

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Strong Brand Awareness : Nike currently dominates the highest market share in activewear in China; and has the highest brand recognition amongst competitors.

Already produces 26% of its manufacturing in China.

Provider of jobs : Nike provides over 170.,000 jobs to those in their Chinese factories.

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Nike has specialised on footwear for years, however current trends suggest companies must do product diversification to remain relevant

Chinese customer desires a ‘handson’ approach with brands and their reputation and Nike has poor reputation due to poor labour conditions and the unequal pay between men and women, causing many law suits.

Innovative products are possibly the biggest opportunity for Nike in China. Chinese consumer are tech-savvy, they enjoy functionality and innovation behind a product.

Product diversification is quite possible for Nike, stepping outside of the comfort zone and into new product segments could attract different customer bases.

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As Nike sells in China, it is bound to be affected within the Chinese economy. If/when the rates begin fluctuating, Nike will have to spend more on manufacturing in China, and will begin losing revenue.

Counterfeit Nike products are rather common in China, which may create a Burberry chav cap effect within the society, associating the brand with low quality.

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Adidas

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Adidas works hard to develop environmental friendly products, which is on a rise in the Chinese market as well as sportswear. Many collaborations (aka stella mccartney etc).

China also shows trends of the growth in luxury markets, Adidas can collaborate with luxury brands and create special collections dedicated to Chinese customers With 37% of its manufacturing done in China, Adidas is dependent on the duty and tariffs for its pricing strategies. Adidas manufactures over 1/3s of its production in China, hence giving the suppliers and manufacturers a bargaining power.

Unable to capitalize on upcoming trends due to slow turnaround - it takes 18 months from design to sale point for products. Chinese consumer is quite demanding, requires trends to their door instantly. Lack of endorsements within Asian markets (China)

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Li Ning

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Associated with Chinese ‘nationality’ due to sponsoring Chinese national themes in sports events .

Innovative with producing over 600 different shoe styles per annum

Lower prices in comparison to competitors keep customers around The brand does not have a clear identity and style with designs and marketing strategies changing frequently.

Badminton is the highest done sport in China, and the brand is already creating badminton related garments - however moving the focus to a specialized area may benefit the brand as Chinese customer likes to go out there and use the garments functionality.

The brand focused on second-tier cities instead of Shanghai which is the trendsetter city, losing a sizable market share.

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Customers are increasingly becoming aware of environmental impact their purchases have and are beginning to choose brands that are environmentally friendly or environmentally conscious over those that are not and Li Ning is currently not offering a transparency report in terms of their impact unlike its competitors such as Nike and Adidas.

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Li Ning

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Associated with Chinese ‘nationality’ due to sponsoring Chinese national themes in sports events .

Innovative with producing over 600 different shoe styles per annum

Lower prices in comparison to competitors keep customers around The brand does not have a clear identity and style with designs and marketing strategies changing frequently.

Badminton is the highest done sport in China, and the brand is already creating badminton related garments - however moving the focus to a specialized area may benefit the brand as Chinese customer likes to go out there and use the garments functionality.

The brand focused on second-tier cities instead of Shanghai which is the trendsetter city, losing a sizable market share.

O

Customers are increasingly becoming aware of environmental impact their purchases have and are beginning to choose brands that are environmentally friendly or environmentally conscious over those that are not and Li Ning is currently not offering a transparency report in terms of their impact unlike its competitors such as Nike and Adidas.

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Competitor Analysis Porter’s 5 Forces

New Entrants Power Of Suppliers

New entrants in the market could challenge Outdoor Voices; as even though the Brand has a unique image and vision; it can be copied. Best way to tackle this problem would be to innovate often and give prior consumers a reason for return. Manufacturing quality and functional products while keeping the consumer mentally engaged with the brand can benefit in the threat of new entrants.

Buyers are who the brands work for at the end of the day – and the Chinese consumer is not easy to impress. In order to keep the buyers satisfied, Outdoor Voices must focus on an interactive and entertaining promotional ideas such as contests, events.

In order to keep the customer satisfied, the Brand must constantly improve on the feedback received from the client. As discussed, Chinese customer value a direct communication with brands on social media channels; and are more likely to follow a brand online than their counterparts in other countries.

Threat of Substitutes

While suppliers may become challenging in the long-term for Outdoor Voices as they are based in Australia; one way to handle this problem would be to develop a supply chain protocol that eases up the process in the newfoundland.

Another way to tackle it is to experiment with products and use different materials to not be dependent on one supplier in case of further challenges as the brand enters the new market.

Existing competition is undeniable in Chinese market; however none so understanding of Chinese culture and buyer. Chinese shopper has an in-depth worth for traditional values and nationalist selling points; proving successful to one of its competitor brands.

Best way to succeed in a competitive environment could be to do collaborations with competitors; or go into brand diversification and in China it is quite possible for brands to expand within their product range and dive into product diversification.

China is a fast growing economy and new brands emerge on daily basis with similar values and identities to other brands. In order to secure a position without a permanent competitive threat is to focus on servicebased business models than product based. While the product is the end selling point; Chinese customer values how brands bring them to that point. In order to differentiate the brand in the eyes of the Chinese customer, Outdoor Voices must understand the core values of the buyer and take them into account as the brand evolves.

Outdoor Voices

Biggest differentiation factor with Outdoor Voices is their vision of their customer. Outdoor Voices does not promote its products for athletes or the hardest working, but it encourages the customer to ‘Just do one thing’ and ‘Just get out more’, hence creating a more sincere tone for the ‘everyday’ person who does not strive for marathons but for ‘getting out as much as possible’. Chinese government is quite focused on sports, as well as Chinese customer. The ‘lesson’ based angle of the Outdoor Voices will provide a distinction point for the brand.

Nike

Nike is an established brand with the highest brand recognition for sportswear and gear in the world. Nike’s main differentiation is lightly dependent on its brand image, however sponsoring of athletes and sports professionals is also quite important for the Nike image; eg: Jordans. Nike is also very strong in tech-wear and innovations.

Adidas

Adidas is a leading brand with its environmental collaborations with brands such as Stella McCartney, but also creating innovative products; which proves essential for the new Chinese shopping mentality.

Li Ning

The biggest differentiator for Li Ning is that it is a Chinese company, and the Chinese customer value nationalism factor supported by their government. Li Ning can always push nationalist promoting factors to win the customer - hence they are also a national sponsor for Chinese national teams.