Local Brands Have Inherent Advantages In Third And Fourth Tier Cities

According to relevant data, The North Face has 694 channels in 31 provinces and cities in China, and 12 channels in more than 20 provinces and cities. There are 7 provinces and cities with more than 40 channels, namely Liaoning, Beijing, Jiangsu, Shandong, Shanghai, Guangdong and Zhejiang.

According to statistics, the NORTH FACE channel currently covers 165 cities, and the channel is sinking deeply. Although it is a first-line brand, it has goods in many stores in cities below the third and fourth tier nationwide. There are 5 provinces covering more than 10 cities, Jiangsu, Zhejiang, Shandong, Liaoning and Anhui from the highest to the lowest. The above five provinces have large urban density, relatively concentrated population, and the channel subsidence of THE NORTH FACE is relatively high, which basically covers the cities under the jurisdiction of the province. For example, Shandong has a total of 17 provincial-level cities, of which 13 have been covered by the NORTH FACE, and it has sunk to one county-level city; In addition to Suqian, 13 cities under the jurisdiction of Jiangsu Province have been completely covered, and have further sunk to 7 county-level cities. In addition, the same is true in Zhejiang, Liaoning and Anhui provinces. In some western cities, shopping malls have more access than other international brands. For example, except Urumqi in Xinjiang, shopping malls in Karamay, Korla, Yining and Kuitun also have stores.

With the further development of the industry, the first-line brand channel is sinking more vigorously, and local brands have inherent advantages in the third and fourth tier cities, and the competition in this area will become more intense in the future. As an early entrant to the Chinese market, the NORTH FACE has covered 165 cities, accounting for 62% of all prefecture level cities in China. If the channel further sinks to county-level cities, the proportion will be reduced to about 25%, so the space is still large. According to the former vice president of Asia Pacific of THE NORTH FACE, the Chinese market is now its second largest direct market in the world, and the proportion of direct stores of THE NORTH FACE in the Chinese market should further increase in the future. In addition, as an outdoor brand focusing on professional market, the proportion of professional outdoor stores in its channels will also further increase, but according to the current statistical data, its overlap with the columnia channel is still obvious.