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    Footwear Sports Brand Repurchase Or Sale Or A Vicious Circle

    2011/10/31 21:26:00 27

    Footwear Brand Repurchase Vicious Circle

    Due to the overoptimism of market expectations and extreme

    Market strategy

    The major brands are now stranded in inventory and the industry is in a period of adjustment.

    In addition to Li Ning Co, the third quarter data show that, including PEAK, Anta and other brands, the situation is not optimistic.


    Excessive expansion leads to increased inventory pressure.


    On the 14 th of this month, Lining announced the third quarter and the National Day holiday in 2011, the same store growth data of Lining.

    Data show that in the third quarter, the growth of Lining's same store sales is still low. The same store sales growth during the National Day golden week is still low, but it is better than the previous quarter.

    The group maintained the expected growth of the same number of units throughout the year.


    The third quarter's growth slowed down with PEAK.

    PEAK's same store sales in the third quarter increased by 6.2% compared with the same period last year.

    The open data released by PEAK showed that the order volume in the second quarter of 2012 was the same as that in 2011.

    Order

    An increase of 9.5%, the lowest increase in PEAK's orders since 2009, after PEAK's orders increased by more than 20% year-on-year.


    And Anta sports in the third quarter of the business situation has also declined sharply.

    The expected data released by Anta recently showed that the same store sales growth fell to the number of units in the third quarter, while the retail terminal discount rate also expanded.

    According to a Hong Kong media report, Anta management admitted on the "enterprise day" that the order growth in the two quarter of 2012 will be lower than the 15% level in the first quarter, and the industry will be full of challenges in the next six to 1 years. It is difficult to guarantee the third and fourth quarter order results in 2012.

    In addition, Anta planned to add 600 to 800 shops next year, and now it may also be adjusted downward because of the increase in the number of outlets.


    On the one hand, in recent years, the development of sports apparel industry has been expanding too fast, resulting in a backlog of large stocks of retailers, which affects the development of Companies in the latter stage; on the other hand, under the domestic inflation environment, consumers have the tendency to reduce the consumption of sports goods, and the two deviations increase the pressure of inventory, plus the rising cost of renting and labor, leading directly to the decline of performance.

    "CIC consultant light industry researcher Xiong Xiaokun told reporters that at present, there is stock pressure in major sports apparel industry. We need to gradually digest existing stock and reduce the output of next batch of products, and the sports apparel industry has entered a period of adjustment.

    {page_break}


     

     

    buy-back

    Cheap sale is

    Vicious spiral

    ?


    Domestic sporting goods companies had been growing rapidly and the market strategy was radical. In 2011, there was a big stock phenomenon of sporting goods brands. Cleaning up inventory was still the focus of the third quarter of major sporting goods brands.


    Zhang Zhiyong, chief executive officer of Lining group, said: "as of the end of September, the number of factory shops and discount stores in Lining has reached 218 and 285 respectively, and 300 low efficiency single store distributors have been completed.

    Overall, the progress of channel reform is in line with our expectations. As the group increased factory shops and discount stores, and increased the inventory clearance of retail terminals, the average retail discount in the third quarter increased slightly compared with the first half of the year.

    At present, the inventory level of the retail side has begun to decline from the high level in the middle of this year.

    "


    Some analysts believe that the behavior of destocking may damage the competitive environment of the industry, and other industries need to follow suit. In the retail market, discount can be greatly discounted to attract customers to maintain sales and reduce the gross margin of distributors.

    If the situation deteriorates further, distributors may ask the sports apparel Brand Company to lower the wholesale price, causing the gross margin to shrink.


    Xiong Xiaokun said that due to excessive inventory, product backlog, to ease.

    Capital chain

    It is bound to consume inventory in an early stage. The promotion and sale of products will be the most direct and effective way, but it will inevitably hurt their brand value and affect the market positioning of products.


      

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