Summary of Key Points
In recent years, outdoor equipment has ceased to be the exclusive domain of professional enthusiasts. Ordinary consumers—those who occasionally go outdoors or ski once or twice a year—have become the main market force, giving rise to a plethora of cost-effective brands. These brands have managed to lower prices by leveraging China's domestic supply chain advantages (such as factories transitioning from being contract manufacturers to developing their own affordable materials). However, they also face challenges: while their products are popular due to their low cost, consumers may not necessarily trust the brands themselves. To become a national outdoor brand like Decathlon, companies need to focus on technological innovation and building strong brand loyalty.
1. Why Have Outdoor Equipment Prices Suddenly Become Lower?
In the past, outdoor equipment was considered a luxury item for professionals, with international brands costing thousands of yuan out of reach for the average consumer. But things have changed:
- Changing demand: Ordinary consumers now wear outdoor gear in their daily lives (e.g., wearing jackets while visiting scenic spots) or for occasional outdoor activities (skiing 1-2 times a year). They don’t need top-tier performance but do want affordable, practical products. For example, Grace can afford a jacket for 800 yuan, whereas similar products from luxury brands in stores are much more expensive.
- Changing supply: Brands have recognized this market niche and adopted a cost-effective approach. Jackets from brands like Berghaus and Camel sell for 500-800 yuan, while Camel’s mainline products range from 300-700 yuan. These brands have seen rapid growth in revenue (Berghaus’ revenue increased from 380 million to 2.79 billion yuan in just three years), even surpassing that of international brands in the same price range (Camel’s retail sales are higher than those of North Face).
In essence, it’s a business driven by the purchasing power of the masses—China has 500 million people who engage in outdoor activities, ten times more than professional enthusiasts. As long as prices remain affordable, the market can expand significantly.
2. The Secret to Lowering Prices: The Power of the Domestic Supply Chain
The ability to lower prices so significantly doesn’t come from simply cutting costs; it’s due to China’s robust supply chain:
- Factories transitioning to brand production: Factories in Guangdong, Zhejiang, and Jiangsu, which previously produced for international brands like North Face and Marmot, now develop their own brands (e.g., Panke and Himalaya), eliminating the additional costs associated with branding.
- Domestic materials replacing imports: International brands like GORE-TEX once monopolized outdoor fabrics, which were expensive and took months to deliver. Now, domestic fabrics (such as Himalaya’s pk-tex) are cheaper (one-third the price of GORE-TEX) and available in half the time. Berghaus uses 60% domestically produced materials, reducing costs by 50%.
- Supply chain clusters: Regions like Dongguan and Ningbo have a concentration of fabric and processing factories, allowing for quick response to market demands and reduced intermediate costs. For example, fabric manufacturers in Kunshan claim that their products are at least 50% cheaper than those of international brands, with even small factories capable of producing basic waterproof materials.
While there is still a gap between domestic and international fabrics (especially in extreme conditions), they meet the needs of most ordinary consumers.
3. The Concerns Behind Lower Prices: Consumers Buy but Don’t Trust
Although prices have dropped and sales have increased, brands face a dilemma: consumers buy because of the low cost, not because they trust the brand:
- Imitation of best-selling products: For example, Camel’s trail running shoes look very similar to Keelash’s popular models but cost only a fraction of the price. Online reviews suggest that many brands are simply copying successful designs.
- Lack of trust in domestic technology: Consumers are skeptical about domestically produced materials. One user, Michael, says he avoids products made with domestic fabrics because they lack the same quality as imported ones, due to insufficient investment in research and development by brands and their suppliers.
- Price wars are a threat: If cheaper competitors emerge, consumers will switch immediately, as they are primarily attracted by price.
4. What’s Missing to Become a National Brand?
To become a national brand like Decathlon, cost-effectiveness alone is not enough; companies need to combine professionalism, affordability, and trust:
- Invest more in research and development: Brands should invest in innovation (e.g., developing their own fast-drying fabrics) rather than simply copying others.
- Build brand credibility: Show off the quality of products through transparent tests (e.g., comparing domestic fabrics with GORE-TEX). This requires sustained efforts to establish a reputation for reliability.
- Balance cost-effectiveness and quality: National brands should offer a range of products suitable for all levels of users, from beginners to professionals. Decathlon offers both affordable T-shirts and expensive professional equipment.
In conclusion, the current price war in the outdoor equipment market is just the beginning. The real competition lies in building brand value—only when consumers buy a product because they trust it, not just because it’s cheap, can a brand truly become a national favorite.