Sports Brand Restores "Distribution System" To Ease Inventory Pressure

Recently, in view of the rumored "inventory door" problem, Anta clarified that although orders for orders in the second quarter of next year have not been finalized, the growth rate of orders is expected to be lower than that in the first quarter of next year and will meet the company's target for the quarter.

At the same time, according to the analysis,

Whether or not Anta is in the "inventory door", there is an unavoidable problem placed in front of the local sporting goods industry -- the pressure of inventory increases.

The stock pressure has been pmitted step by step from big brands such as Lining, PEAK, XTEP and so on. It has spread to some two or three line brands and has become a difficult problem for the whole sports brand industry.

In the face of such difficulties, the two or three line movement of Quanzhou strives for survival.

Use the distribution system to make the brand quickly seize.

Emerged

Although it has come to an end, the "inventory door" also shows a phenomenon: the whole sports industry is not as smooth as it used to be, but the actual sales revenue is not so large.

A large number of products are backlog in the dealer's warehouse, and the inventory pressure is increasing.

The backlog of inventory and the tight funds of dealers also led to the difficulty in repatriation of brand funds.

Under such circumstances, many local sports brands have begun to try out the distribution system, hoping to ease the pressure on the capital, and Shuai Bu is one of them.

In the view of Luo Jun, marketing director of Shuai bu (Fujian) shoes and Garments Co., Ltd., compared with the traditional ordering system, the distribution system slowed down the dealer's inventory pressure.

"The buy - out order system often causes the dealers to bear huge stock pressure."

Luo Jun told reporters that in this year's environment downturn, the brand should pay attention to the inventory pressure faced by dealers.

"In particular, small and medium-sized brands, if we just dump inventory pressure on dealers, then will face the risk of loss of dealers and capital recovery difficulties."

Compared with the order system, the distribution system can grasp the market sales situation in time, and the company also has absolute autonomy in the distribution of goods. The brand can have a clear idea of the total inventory and the production and allocation of goods.

One industry insider said that in this year, some sports brands have changed from the idea of "how much to sell" to "management of how many products they sell". This kind of "clear thinking and preserving" business philosophy is actually avoiding the elimination of their own brand when the sporting goods industry shuffle.

In the view of Liu Jianwei, the sporting goods (China) Co., Ltd., the ordering system is changed to a distribution system. The enterprise is taking the "cash flow" route, and it is also a protection for the brand itself.

"This year, the sporting goods industry is in a bad environment. The upstream suppliers do not allow the brand to pay the money. In order to keep the capital flowing, the brand has to return the funds efficiently.

The distribution system becomes a brand efficient mode of cash withdrawal.

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Difficult operation

Although it looks good, in practice, the distribution system is not so easy to implement.

Xie Lei, marketing director of China Australia (Fujian) Sporting Goods Co., Ltd. thinks that the distribution system can be regarded as a business mode of "small batch orders plus supplementary orders".

"The brand will sell every product to the market, then decide what kind of sale to sell, then make a large number of subsequent orders.

But this is very demanding for the enterprise's schedule. Is the enterprise able to produce? Even if the production is out, is the market demand period already over? "Xie Lei told reporters that the adoption of the distribution system for sports brands is likely to lead to delays in procurement, production and distribution. Once the products are listed, they will increase the inventory pressure once they are not in season.

On the other hand, the brand under the distribution system needs to be stocked from suppliers to meet the demand for supplementary production.

"Take the sole, for example, ten shoes should prepare at least three kinds of soles. If the dealer chooses too many funds, how can the brand get the sole to meet the timely replenish order?" Xie Lei asked reporters.

Xie Lei is worried about the production problems. The brand planning of starling (China) Co., Ltd. Huang Zhidong is worried that the subsequent purchase order under the distribution system may lead to brand equity.

"If the distribution system is adopted, the enterprises will be faced with a large number of replenishment orders, but it may be unfair for the dealers to make up the patch first and make up for them."

Huang Zhidong told reporters that if a dealer makes up the order according to the order of "first come, first served", according to the market rules, the latter is likely to be the largest market demand. The dealer who later fills the bill will find it unfair. If the enterprises make up the bill according to the size of the market demand, the dealer who has applied for the supplement will inevitably have some ideas.

"Order system" can achieve the "South cargo North pfer", to solve this problem, to achieve a balanced demand.

Comparatively speaking, the distribution system is weaker for the overall macro regulation and control of goods, and it is easy to appear "powerless".

Two pronged approach

What is the mode of the order system? Distribution system? What kind of model does the sporting goods brand adopt? In the opinion of Guo Hanyao, a real marketing expert, if the brand is in the market share expansion period, it should use the distribution system in a timely manner, so that it can better occupy the market and expand connections.

If the brand develops relatively well and has a certain amount of capital, it should be a two pronged approach rather than a single order or distribution system.

He believes that the single system can not adapt to the market, although the ordering system is simple and quick, but there is no strong ability to develop the distribution system; while the distribution system is conducive to brand maintenance channels, to facilitate the return of brand funds and reduce the pressure of dealers, but its difficult to control the subsequent supplementary questions become the drawbacks of brand development.

"But compared to dealers, inventory and capital issues are top priority, so they are more inclined to choose the delivery system."

Guo Hanyao told reporters.

Guo Hanyao believes that if we want to solve the limitation of the distribution system, we must pay attention to several problems.

"First, the brand must control the longest sales cycle and the best listing cycle."

Guo Hanyao said the brand needs to have a clear plan for the longest sales cycle and the best listing cycle, so that the subsequent production of products will not be stagnating.

Secondly, Guo Hanyao said that when carrying out the distribution system, the brand must have special attention to the market and the dealers should be tracked in place.

Finally, the brand itself should also do well in macro regulation and control and accurately grasp the market dynamics.

"Brand should do well in the reaction chain from the market to the brand, and the reaction speed of the brand to the market will become the key factor for the success of the distribution system."

Guo Hanyao said.