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    Sports Products Are Polarized &Nbsp; China'S Trend And Li Ningqi Retrogression

    2011/3/24 13:19:00 74

    The Polarization Of Sports Goods In China And The Retrogression Of Li Ningqi

    It is reported that the development of sports goods market in the mainland is polarized.

    Until the China trend announced yesterday's 2010 annual results, the six major sporting goods listed companies have published all the operating data.


    On the one hand, the mid-range brand performance known as the "Fujian Gang" has been successful all over the world; on the other hand, it has positioned high-end products.

    Lining clothing

    And China's trend is a return to profitability. China's trend announced yesterday.

    Third quarter order

    There will be another double digit decline.


    Same store sales growth lagging behind


    China's main business is Kappa brand business. Last year, its sales volume was 4 billion 261 million yuan (RMB, the same below), rising by 7.3% a year, and net profit was 1 billion 464 million yuan, rising by 0.3% per year and 25.83 points per share, all lower than that of Bloomberg.

    In comparison,

    Anta

    Last year, sales growth of XTEP, PEAK and 331 degrees exceeded 25%, even though the Lining brand also had an increase of 13%.


    China's new chief executive officer

    Adidas

    (Adidas) Sandrine, President of Greater China, admitted yesterday that the company has bid farewell to the era of rapid growth, and will enter the adjustment period this year. Therefore, it will not have a larger scale expansion, but first, it is committed to solving the inventory problem.


    In fact, China's trend last year has taken the initiative to reduce orders to reduce the backlog of retail pipeline stocks, but the annual report shows that last year's stock days still increased 1 days to 45 days, accounts receivable days increased from 24 days to 37 days, coupled with the same store sales growth is low, the certificate bank is expected that China's trend in retail level sales are not good, distributors pressure is bigger, this year will still hold a wait and see attitude.


    Trend third quarter, orders fell 15%


    Sandrine yesterday expected that the third quarter of this year will be double digit (15% or so) decline.

    Lining also made predictions for his third quarter, but the other second-line brands were more than 20%.


    Lining and China both believe that the mainland sporting goods market will upgrade its consumption, and the market demand will shift from the middle to the low end, so the growth will slow down in the current pitional period.

    But a few local brands from Fujian obviously disagree with this statement and have great opinions on the "individual brand pushing its own problems to the industry".


    However, the overall growth forecast of the six big companies for this year's sporting goods industry is between 13% and 20%, with the lowest trend forecast, low double-digit, Lining forecast 13%, PEAK's highest expected, 20%.

    Some investors questioned whether consumers could upgrade directly from the second-line brand to Nike (Nike) or Adidas, and whether the Lining in the middle could be benefited from the trend, which might have a "bridge" in brand positioning.

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