Famous Shoe Enterprises PEAK Terminal Zero Inventory Guarantee Dealer Interests

On October 27th, under the circumstances of tight money and slowing global economic growth, the company decided to become the world's leading sport. brand Chinese companies actively change and adjust futures orders to reduce Distributor Risk, enhance the level of internal control and control, and be ready for the next round of high-speed growth.

In the near term, PEAK announced the results of the second quarter 2012 ordering, which increased by 9.5% compared with the same quarter in 2011. The same quarter sales increased 6.2% in the third quarter compared with the same period last year. The growth rate slowed down compared with the first quarter orders. This led to speculation that the sharp decline in the growth rate meant a decline in the sports industry market. This conjecture also led to fluctuations in PEAK's share price.

In this regard, PEAK sports CEO Xu Zhihua said. Peak The slowdown is not the speculation of the outside world, but the initiative control measures taken by PEAK to protect dealers. It is also an important measure for PEAK to enter the stage of internal structural adjustment. "For PEAK, who aspire to become an international company, it is in order to win the future by actively changing and changing the traditional concept of growth in terms of heroes." Xu Zhihua said.

　 Terminal zero inventory ensures dealer interests

"PEAK's dealership has never been lost. Dealers are our friends, partners and interests communities, "Xu Zhihua said." therefore, we will adjust the corresponding policies to protect the interests of dealers in view of the changes in the economic environment and the different stages of development of enterprises.

China and even global economic growth and the impact of high inflation on the market continue to reach the second half of the year, the industry as a whole slows down, but PEAK still adhere to the brand value-added and sound price policy, PEAK believes that this can not only maintain the brand's lasting value, but also avoid falling into the vicious competition misunderstanding.

In order to maintain the sustainable development of enterprises, PEAK adopted the principle of "terminal zero inventory" at the Q2 ordering conference in 2012. The number of orders placed by the distributor and the corresponding production volume were produced by the factory. In the past industry practice, the order quantity is floating on a certain proportion on the basis of actual demand, that is to say, a part of products may become the inventory burden of dealers.

And this time PEAK completely abandoned this industry practice and reduced dealer pressure to zero. According to the needs of distributors, production and sales can greatly reduce the inventory and capital backlog, speed up capital turnover, reduce inventory management costs, avoid market changes and product renewal, resulting in price reduction, unmarketable risks and so on. The pressure of dealers will be reduced, the corresponding capital turnover capacity and development capability will be greatly improved, and this will help improve the overall management efficiency of the supply chain.

Xu Zhihua said, "everything is for dealers. At present, influenced by the RMB exchange rate and the tightening policy of monetary policy, the economic environment is not clear, and the market will inevitably generate some fluctuations. Under such circumstances, we need to protect dealers' safety and smooth through this very special period. Headquarters will also provide more support to those relatively disadvantaged dealers. Terminal zero inventory is a measure and an attitude that PEAK is willing to share with the distributors.

"Terminal zero inventory" does not mean a reduction in profits. After reconfirmation of the third quarter and the 4 quarter orders, it is expected that annual sales can still achieve double-digit growth. Although some orders have been cancelled, they will not increase inventories or increase costs because they have not been produced. PEAK is confident that gross margin will remain at the level of last year and the first half of this year.