Price Rises Or New Round Of Waterloo Expected

motion brand After experiencing a period of rapid growth, the future will enter a stage of steady growth. industry The concentration will be further strengthened. market It will concentrate on some dominant brands. When the environment is good, it is more difficult than who is going to be tough and who is new.

Encountering Waterloo

For PEAK sports, the joy of selling gold week seems to have gone a little faster, because in October 18th only 10 days later, its share price fell 8.57%.

Behind the decline in share prices is the contraction of their performance.

In October 10th, Peak The order was released in the second quarter of 2012, and the order volume increased by 9.5% compared with the same quarter in 2011. Meanwhile, the same store sales in the third quarter increased by only 6.2% compared with the same period last year. Compared with the previous two digit growth rate, PEAK slowed down for the first time.

Along with the decline in the order growth rate, PEAK shoes also have to shrink the front line. PEAK expects to open 600-800 new stores in 2012, but after adjustment, PEAK will cut the net growth of next year's shops to 200, and the reduction will be huge.

At the same time, the new local "one brother" Anta is not much better. Anta said in a notice recently that orders for orders in the second quarter of 2012 have not been finalized, but the growth rate is expected to be lower than in the first quarter of 2012.

According to public information, the order volume of Anta in the first quarter of 2012 increased by 15% over the same period. According to the above announcement, the order amount in the second quarter of 2012 was less than 15%, which is the smallest increase in Anta's 11 orders since 2009.

Anta also announced that according to the unaudited operation data, the same quarter sales growth of Anta retail stores in the third quarter of this year is expected to slow down compared with the previous quarter. Anta also acknowledged that the retail discount policy offered by the retailer in the third quarter of this year will be more flexible and flexible.

News came out that its share price fell by 16.96%, which is also October 18th. PEAK and Anta also encountered 360 degrees and XTEP, and the two shares fell by 8.24% and 12.27% respectively. This day has become the Waterloo of China's sports brand.

In fact, outside PEAK, Lining, Anta and other domestic sporting goods brands have seen signs of slow growth this year, and their share prices have plummeted. We can not help asking, what has happened to these once famous sports brands?

Disaster caused by rising prices

In the industry view, "excessive price rises" is an important reason for the collective slowdown in sports brand growth.

In 2010, the prices of all sports brands were adjusted, but the range was not large. According to public information, the average selling price of Anta footwear and clothing products increased by 4% and 8.8% respectively last year, and the average selling price of shoes increased by about 5.5% in the second half of last year.

In 2011, in the face of high cost, Lining "raised the price range to two digits"; PEAK increased the 10% to 15% increase; Anta and 361 increased by an average of about 10%.

However, in less than 3 months, sports brands once again raised their prices collectively. At the end of July, headed by Lining, Anta, XTEP, PEAK, and 331 degrees and many other sporting goods manufacturers announced the price increase of shoes and clothing products at the order meeting. Lining declared that the price of shoes will increase by 7.8% in the fourth quarter of this year, and the clothing will increase by 17.9% overall. The price of sports shoes and garments in the other enterprises will rise to 20%. {page_break}

And the price increases, so that the domestic sports brand "good quality and cheap" attributes gradually reduced.

According to media statistics, in 2007, the factory price of Anta footwear and clothing was 88 yuan and 53.6 yuan respectively, up to 99.5 yuan and 65.8 yuan in 2010, and 13.1% and 22.8% respectively in the 3 years. But after entering 2011, Anta announced that the price of shoes and clothing products had been raised by two figure in the two order meeting this year. The price increase in the first half of this year is almost the same as the cumulative increase in the past 4 years. Roughly calculated, the factory price of Anta's footwear and clothing is about 113 yuan and 80 yuan now. According to convention, the contract price is generally between 80 percent off and 60 percent off, so the price of footwear and clothing will reach 300 to 500 yuan when sold to stores.

Analysts believe that the competitiveness of Anta products is almost completely lost under the market of 250 yuan or less. Nike and Adidas are gradually eroding the market through factory stores. In some Nike factory stores in Shanghai, the price of some running shoes after discount is only about 240 yuan, which is lower than that of Anta's similar products.

The consequences of price increases are reflected in the sales volume of the market. Taking Lining as an example, the increase in prices has led to the decline in orders for clothing and footwear products in the second quarter of this year by more than 7% and 8% respectively.

"The growth of domestic sports brand sales depends largely on its low price advantage compared with the international sports brand, but through several rounds of price increases, this price advantage has gradually weakened, and the price of some domestic sports shoes is almost the same as that of the international brand Adidas and Nike, which will have a certain impact on its sales volume." CIC consultant research director Zhang Yanlin said so.

Stability is very important.

In fact, the price increase at the beginning of the sports brand is due to the increase in raw materials, and in the near future, price adjustment is a choice that enterprises have to make under the background of price level, shop rent cost and labor cost increase.

But some analysts believe that now, Nike, Adidas and other international brands are trying to adjust the channel structure and enter the two or three line market. This has made domestic sports brands feel the pressure. Therefore, another driving force for collective price increases in domestic sports brands is to enhance brand positioning and narrow the distance between spannational sports brands. Whether the price of the domestic sports brand is raised or the price of the international sports brand is raised, the price is related to the product positioning, the product positioning is high-end, and the price can not be lost to the opponent. Price increases are related to product positioning and competitors. High end products should also consider raising their market position by way of raising prices. Under the influence of multiple factors such as domestic inflation, labor cost rising, market demand and so on, enterprises are facing huge pressure of cost spanmission. After raising prices, enterprises are also facing the situation of restraining consumption, which is the reality that all brands have to face.

Xu Zhihua CEO of PEAK Group believes that after experiencing the period of rapid growth, the sports brand will enter a steady growth stage in the future. The concentration degree of the industry will be further strengthened, and the market will concentrate on some dominant brands. In the process, many hidden problems will emerge, such as inventory. In a special economic situation and industry environment, it is very important to lay a solid foundation and preserve strength.

For this reason, there are analysts who believe that when the environment is good, it is more difficult than who is going to be tough and who is new. Stability is very important. We must do things one step at a time so as to ensure the interests of enterprises in the uncertain economic environment.