PEAK'S Leading Sports Brands Reduce Orders And Protect Dealers' Interests.

"Under the circumstances of tight money and slowing economic growth, Peak It was decided to reduce futures. Order Quantity, try to achieve terminal zero inventory. " PEAK sports CEO Xu Zhihua has recently made public in the media that PEAK will lower its expectations next year. The order growth rate that will normally maintain over 20% will drop below 15%, and sales will also be expected to grow in single digits.

In fact, the name (Sports) supplies limited company also chose to reduce the order quantity. Agent The order is fully charged to produce. According to its responsible person, this is to reduce the pressure of dealers, the corresponding capital turnover capacity and development ability will be greatly improved, which will help improve the management efficiency of the entire supply chain.

Shun Chao shoe industry Co., Ltd. vice president Wu Xiaoming also told reporters, in fact, the company's flag. brand "Super Cup" began trying to reduce orders last year to ensure that dealers are free from inventory problems.

"Although many enterprises are suffering from inventory now, our enterprises are relatively relaxed in this regard. Because of the capacity forecast of the market, we did not let agents "eat enough" last year. Wu Xiaoming told reporters that, in fact, many agents will rush underground, but the volume of orders is not necessarily the real demand in the market, so the company almost produces only seven or eight of the order quantity of agents. "This enterprise risk is low, our agents will not be tired of inventory, but more confidence in the market, kill two birds with one stone." Wu Xiaoming said.

"Now a lot of first-line brand futures orders are decreasing, not to mention our two or three line brands." An unnamed name Shoe enterprises Responsible person said, in fact, the two or three line brand is not suitable for all futures, which is risky for shoe companies. "The inventory that dealers will not sell will eventually affect their return to enterprises, and some strong dealers will directly return the stock to the shoe enterprises to use them to offset the payment, which is not the case for themselves." the responsible person told reporters that such a precedent had already existed, and the next market was obviously not optimistic. This is a necessary measure and an inevitable trend for the sustainable development of enterprises.

In this regard, Philharmonic sports company vice president Ma Wan Cheng agrees. He told reporters a painful case happened in Jinjiang: a brand enterprise H has a very strong agent, one year after the agency has placed a huge amount of orders, but because of fierce competition in the market, a lot of inventory, so the agent in order to cash flow, low price to deal with all the inventory. However, the agent told H shoe companies that they had a huge stock and demanded that they buy it back in full. In order to keep this strong agent, H, a shoe company, agreed to the request and signed a buyback contract quickly. Soon, the agent bought the inventory inventory clerk H sent to the shoe manufacturer, confirming the false number. When shoe company H discovered the matter, it was too late, because the money was paid, it lost millions of money, even the stock of goods had not been recovered. It was really a loss to the ladies and soldiers. This industry knows that, as a typical precaution, it is the industry's vigilance at the moment.

It is reported that at the 2012 Q2 order meeting in 2012, the company adopted the principle of "terminal zero inventory", the amount of orders placed by the distributor, and the corresponding production volume 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.

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.

"All 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 work with dealers to overcome. Xu Zhihua said at the end of the interview.