Price War Is The Propeller Of Sports Shoes And Clothing Adjustment.

Ding Shuibo, President of XTEP international, said that although the profit rate of sporting goods retail industry has been decreasing in recent years, XTEP's performance has steadily increased, and more than 1000 new stores have opened in 2009.

Ye Qi, vice president of XTEP, said that the sporting goods industry needs price war to promote industry consolidation, and the more fierce the price war is, the better.

In sports industry, it is customary to offer new products without discount, but with the fierce competition, this practice has been broken.

Lin Weiyue, general manager of PEAK Shanghai brand management center, said: "in some two or three tier cities such as Anhui, the price of new products is relatively strong and can be done without discount, but no discount is allowed in places like Shanghai.

Sports new products listed on the ten percent off and 12% off are more common, sports brands both at home and abroad have this phenomenon, others are discounted, you have no choice.

The discount of new products on the market is especially obvious in such a city as Shanghai, because there are many brands and fierce competition.

International brands such as Nike and Adidas are sold in Shanghai for seventy percent off times, and more than 100 yuan for Nike shoes is not impossible.

The fierce competition in the sporting goods market is evident from the rapid expansion of the sporting goods retail industry.

Analysts and Anta dealer Ma Gang said that in recent years, the sporting goods retailing industry has entered the "Warring States era" which is dominated by separatism and disputes among various powers.

Among them, BELLE international [8.940.56%] (01880.HK)'s Bobo sports has nearly 3000 sporting goods retail stores throughout the country. Baosheng international, a group under the Taiwan shoes Wang Baoyuan group, has more than 3000 Direct stores and thousands of joint stores in the whole country. It has opened more than 1700 stores (including affiliate channels) in Southwest China, and has more than more than 1000 sporting goods retail stores in East China and central China. There are many similar retailers with strong waves and sharp strength throughout the country, while 100 of the sports venues in Hong Kong have opened over 60 large sports cities in 16 cities in Zhejiang.

Ma Gang believes that the sporting goods retail market is no longer a blue ocean but a red sea.

At the end of 2008, Taiwan Fengtai group, the second largest sports shoe company in the world, formally withdrew its 85% stake in the mainland sporting goods retailer cross world sports and withdrew from the mainland sporting goods retail market.

Baosheng International's 2009 earnings report also showed that the performance in 2009 was basically between break even.

According to industry sources, the profit margins of the sporting goods retail industry are decreasing and some are as low as 10%.

Ding Shuibo commented: "in fact, the net interest rate has reached 10%, and the net profit margin of BELLE and other international brands is only about 5%, and the net interest rate 10%~15% is relatively high."

Ye Qi said, "the profit margin of foreign sporting goods retailers is only 3%~4%."

Ye Qi believes that the price war is not a bad thing: "now it is clear, well done brand is good, bad brand days are sad, it is impossible that there will always be dozens of brands in one industry.

I hope that the speed of price war will be faster and stronger. It is best to return to the original form and eliminate the unqualified ones as early as possible.