Tackle Trade World - May 2024

It is still unclear whether some dealers who previously
bought goods at high prices from Tianyuan will suffer
heavy losses and whether Deng Gang will be compensated
accordingly.
No wonder some people in the industry denounced it on
the Internet: They will never touch Tianyuan’s products
again. It can be seen that Deng Gang's price war has
caused a chain reaction in the fishing circle.
For those smaller fishing tackle companies, it will be
difficult to withstand such an offensive, and offline
fishing tackle stores are expected to also struggle. Some
people have already given predictions that more than
half of fishing tackle shops will close in 2024, and fishing
tackle companies without economies of scale will also be
gradually eliminated in the future.
Two years ago, everyone in the fishing industry was
grateful to Deng Gang. Now, I'm afraid some people are
going to "swear my mother". It’s really this moment and
that moment!
Can a price war solve the problems existing in the fishing
industry? There is no doubt that Deng Gang's choice to
start a price war must have been carefully considered.
After rapid growth in the past two years, the fishing tackle
industry has now reached a bottleneck. Coupled with the
declining willingness of anglers to consume, competition
in the fishing industry has become a red ocean.
If the production load of the previously expanded
production line cannot meet the standard, it can only
be cut down. If the products squeezed in the early stage
are not disposed of in time, they may also become a hot
potato.
Looking back at the fishing consumer market, many
anglers who have cultivated their fishing hobby in the
past few years may fall into fishing anxiety in the new year. First, they don’t have a lot of time. Second,
their pockets may not be as big. Third, It is the “no fishing” regulations in many places that discourages
fishermen.
Fishing is a leisure activity of "leisure, money and fun". When the above three conditions are no longer
met, the willingness to fish will drop to freezing point. If one angler encounters the above situation, it may
not have any impact, but when thousands of anglers combine the above factors, the impact will be huge.
This phenomenon is reflected on fishing tackle companies, which is that the previous high-speed growth
performance suddenly reaches an inflection point, and the situation takes a turn for the worse, and they
have to cut off their strength, otherwise it will be difficult to survive.
However, is relying on price wars to stimulate anglers' demand just like drinking poison to quench thirst? If
the consumption willingness of fishing groups still does not change, Teacher Deng may enjoy a short-term
performance growth after this wave of price wars, but it is still difficult to determine whether the subsequent
situation is optimistic.
In the long run, for those in the fishing industry to survive, the most important thing is to maintain
the sustainable development of recreational fishing. If everyone’s enthusiasm for fishing is ruthlessly
dampened by measures such as the “ban on fishing”, it will probably be useless no matter how hard we
try.
Deng Gang and those head fishing companies should rely on their own influence to improve the
recreational fishing environment. When the enthusiasm of fishing friends is aroused, fishing tackle
companies will naturally have no worries about running out of food. On the contrary, I am afraid that most
of the people in this industry will no longer be as optimistic as before.