Baoxiniao Shares In Bilut&Nbsp; Want To Share The Sportswear Market

　　 Annunciator It was announced on the 18th that it invested 15.3 million yuan in Shanghai Billut Fashion Co., Ltd. (hereinafter referred to as "Billut") accounts for 51% of the registered capital of the company after the capital increase. Market observers believe that in recent years, the growth of the men's clothing industry is relatively slow, and the sporting goods industry is growing at a high speed. Baoxiniao hopes to get a share, but the competition is expected to be very fierce.

Billut was established on October 22 this year. Its business scope is mainly the production and sales of low-end fashion sportswear, but it has not yet started its actual operation. Chen Shixin, a market observer, told the reporter: "In recent years, the sporting goods industry has been booming. The overall growth of the men's clothing market is relatively slow, and there are still some opportunities for low-end fashion sportswear in China as a whole. When Baoxiniao sets foot in this industry, it can use the original channels to expand its sports business."

Baoxibird and Seven Wolf (002029. SZ) are two major men's clothing listed companies in China. In 2008, the operating revenue and net profit of the two companies increased significantly. Baoxibird's operating revenue in 2008 was 938 million yuan, up 100.4% year on year; Seven Wolf's annual income was 1.653 billion yuan, up 88.7% year on year; However, in 2009, the growth rate of the income of Baoxiniao and Seven Wolf fell to 16.2% and 20.24% respectively.

Compared with men's wear enterprises, Tebu (01368. HK), which produces sports and fashion products, increased its revenue by 181% and 111% in 2007 and 2008 respectively. Although its performance fell back in 2009, its revenue still increased by 23.6%, with a revenue of 3.55 billion yuan in that year.

Chen Shixin said that the sporting goods industry has a good prospect, but the intensity of competition is also much higher than men's wear, and the entry risk is high. The annual growth rate of Tebu from 2006 to 2008 was more than 60%, and the growth rate fell back to 24% in 2009. In addition, multinational sports brands such as Adidas are stepping up their competition for the sports fashion products market. The new low-cost "NEO" series products launched by Adidas are targeted at consumers in small and medium-sized cities in China.

　　 Baoxiniao Company admitted: "Because the company has no experience in operating fashionable sportswear, and Fashion sportswear The market also has the unique characteristics of less investment, quick results, and low industry barriers in the clothing market. The competition is very fierce, and the homogenization phenomenon is serious. If the operation of Billut is not good, it is difficult to improve the product popularity and expand the sales network less than expected, which may have a certain negative impact on the company's performance. "