Domestic Sports Brands Fall Into Adjustment Period

According to reports, entering the October, the major domestic sports brands announced third quarter results, including

Because of the early optimistic market expectations and radical 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.

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

Data show that the growth of Lining's same store sales in the third quarter and the National Day holiday 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 increased by 9.5% compared with the same quarter in 2011. This is the lowest increase in PEAK's orders since 2009, after which PEAK's orders increased by more than 20%.

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.

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 will affect the development of Companies in the latter stage. On the other hand, under the domestic inflation environment, consumers have the tendency to reduce consumption of sports goods, and the two deviations plus inventory pressure, coupled with the rising cost of renting, labor and other costs, directly lead to a decline in performance.

Xiong Xiaokun, a light industry researcher at CIC, said in an interview with reporters.

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.

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 overstocking and overstocking of products, in order to ease the tension of the capital chain, it is necessary to consume inventory as soon as possible. The promotion of products will be the most direct and effective way, but it will inevitably hurt its brand value and affect the market positioning of products.