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Tag Archives: JaVale McGee

Monday Afternoon Jianbing

May 22, 2012


Serving up some links while once again proving that jianbing is a snack that can be enjoyed at any time of the day.
  • Almost a year after coaching at the 2011 Nike All-Asia Camp last June in DongGuan, DeMar Derozan is back in China along with a bunch D-Leaguers and other current and former NBAers on NBA China Jam Live, a six-day basketball event in Guangzhou, China.
  • Lebanese point guard and Tianjin Asian import, Rony Fahed, says he wants to come back to play in China next year if he’s not feeling playing in his own country. You know, assuming Asian imports will be allowed next season…
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Chinese shoe companies: A case of too much, too soon?

July 26, 2011


“Over-expanding” in an effort to compete inside of a crowded Chinese shoe market has resulted in a sharp overall downturn for China’s athletic apparel industry.

The expansion of Chinese athletic apparel brands has been an easy trend to spot for basketball fans both in the United States and in China. Over the last few summers, there have been a number of high-profile NBA players who have signed lucrative endorsement deals with China-based companies in order to directly tap into the world’s second biggest basketball market. Li Ning has Evan Turner and Baron Davis; Anta has Kevin Garnett and Luis Scola; Peak features Jason Kidd, Shane Battier and JaVale McGee, all of whom have signature shoe lines and television spots.

Adding players, which in turn add credibility, is key for these ambitious brands: With 2.6 billion Chinese feet that can potentially be fitted for sneakers, and an economy that sees consumer spending power rise steadily each year, there’s a lot of money to potentially be made. Competition between Chinese shoe companies is thus quite fierce and to gain an edge, brands have expanded aggressively. In China, companies have been opening hosts of new retail locations and filling them to the brim with merchandise. In the United States, Li Ning opened its first store outside Asia in Portland, Oregon in 2010, and quickly tripled in size after an encouraging start. Peak has a U.S.-based headquarters in Los Angeles, and has an online shop for American customers to buy their products.

But, instead of one company separating itself from the rest, it appears as if the entire industry is headed for a bust due to over-spending and over-stretching its means. According to a report published yesterday by MarketWatch, experts are seeing a rocky future for Li Ning, Anta and Peak, as well as a host of other smaller companies, whose rapid expansion “is beginning to cause cannibalization of sales and [a] price war,” according to UOB KayHian analyst Ken Lee.

Lee goes on to explain what went wrong:

The problem, Lee said, can be traced back to the initial-public-offering boom in Hong Kong during recent years, when mainland Chinese consumer-related themes were able to raise funds easily to fuel ambitious growth plans.

For example, Peak Sport Products Co. HK:1968 +1.54%PSPRF +5.46% — which signed U.S. basketball star Jason Kidd and other top athletes to represent its line of apparel — was able to raise $224 million in a September 2009 listing, pledging to use the funds for product development and to expand its retail sales network in China.

Likewise, apparel group 361 Degrees International HK:1361 -1.84%TSIOF -1.85% was able to raise $231 million as part of its offer, which debuted in June 2009. Promoters said the company would benefit from sportswear spending, expected to rise at a 30% annualized rate for years.

But what followed, says Lee, was a retailing arms race that outpaced consumer spending power.

The news comes on the heels of Li Ning’s disappointing sales in the U.S. after two quarters. Adding to the grey weather, plans to hook up with Champs Sports, which would have given the company a long reach into the American market, have been squashed.

In our humble (and rather basic, we don’t pretend to be market experts) opinion though, there is still some optimism for Chinese sneakers. According to the report, Chinese spending power has increased 30% for the last several years. That’s an important aspect to keep in mind here: spending power will keep going up, which means the potential market is only going to get bigger and bigger. As a high up American shoe company executive once told me, the race for Chinese feet is being set-up to be won five years from now. This could be a permanent thing, but it could also just be capitalistic Darwinism — a survival of the fittest that is to be eventually won later this decade.

Though the news short-term may not be so rosy for companies, there is good news for consumers — huge, huge sales.

A recent visit to some of these stores revealed product markdowns of 50% to 90%, or even two-for-one promotions on summer wear.

“We have never seen such deep and prevalent discounting,” said Lee, whose retail survey in June took him to six cities around the Chinese mainland.

If it weren’t for our size 13 feet, we’d be all over it. Maybe in five years, one of these brands will get some bigger shoes in their Beijing stores.

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Monday Morning Jianbing

February 28, 2011


Starting your day right with China’s favorite street breakfast and a bunch of links…

  • Shanghai’s post-season chances might have just gone from slim to none after the Sharks’ loss on the scoreline and their roster last night in Fujian.  During Shanghai’s win on Friday against Qingdao came with the news that star import John Lucas will probably be out up to two weeks with a pulled thigh muscle.  Without Lucas on Sunday, Shanghai went down to a 124-108  overtime defeat against Fujian SBS.   With only four games left, Lucas could be out for the rest of the season, and Shanghai could be essentially dunzo for the year.  And in case you’re thinking I made a typo about that score, Fujian dropped 22 points(!) in the extra period.
  • More All-Star China stuff: Li Ning set up a Chinese-American media pickup run in Santa Monica on Sunday before the big game.  That was bad news for the guy who had to write, and thus play, in the game after going hard in LA the night before.
  • Even more post All-Star China stuff: The Wall Street Journal on the PEAK endorsing JaVale McGee’s second place finish in the Dunk Contest.
  • Stephon Marbury’s birthday in China.  His three wishes: 希望一直能保持健康延续篮球寿命,希望世界能永远和平不要再有战火和饥荒,希望扩大我在中国的影响力 — a long, healthy career on the court, a peaceful world that’s forever without war and starvation, and a bigger profile in China.
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Monday Morning Jianbing

February 21, 2011


Starting your day right with China’s favorite street breakfast and a bunch of links…

  • The most generic, bland article ever written about Yi Jianlian can be seen here.
  • Former Team China head coach, Del Harris, is being awarded with the Jerry Colangelo Award, which is given for “men who have exemplified integrity, leadership and character on and off the court while working under the NBA umbrella.”  Harris currently works as the GM for the D-League’s Texas Legends.
  • Due to David Stern’s success in marketing the NBA in China, the League and the U.S. Department of State are making their first ever trip to another country with a billion people, India.
  • How do you celebrate a 67-66 record setting win (for the wrong reasons) over Stephon Marbury and Foshan?  If you’re Liaoning’s Guo Ailun, you take your shirt off.  Guo tied his career high with 21 points, but Liaoning’s 67 points were the second lowest single game tally in team history, and the 133 combined points last night was the lowest of the season. In 48 minutes, Liaoning shot 28% from the field, which included 40 three-point attempts, a number slightly less than the 42 shots they took from inside the arc. Foshan faired a little better, 38% from the field, but shot nine less free-throws while also giving up 18 offensive rebounds. (H/T hoopCHINA)
  • PEAK is the latest Chinese athletic apparel company to announce its intention to enter the U.S. market.  The shoe makers held their officical product launch at their U.S. headquarters in Los Angeles during the NBA’s All-Star Weekend on Friday, unveiling a signature shoe for Minnesota Timberwolves All-Star, Kevin Love.  It’s been a good weekend so far for PEAK in LA — PEAK endorser Dorell Wright participated in the Three Point Shootout and JaVale McGee and his five different colorways has a great showing at the Slam Dunk Contest.  Love will play tonight in the All-Star game.
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