Sports Apparel: High Growth Expectations

In twenty-first Century, with the encouragement of the Olympic spirit, sports became an area of consumer concern. In July 2001, China successfully bid for the Olympic Games and became the starting gun for the rapid development of sports brands.

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Related information, sports apparel industry is expected to continue to grow.

First, the growth of new segments is even more alarming.

For example, in recent years, the outdoor apparel industry started to be late, and the starting point was low. From 2005, the market capacity of less than 1 billion yuan rapidly expanded to the current 7 billion 100 million yuan, and the annual compound growth rate of 47% was high.

Moreover, due to the further deepening of the concept of leisure sports, the high growth trend of outdoor apparel industry is still expected to continue. For example, the total amount of orders in autumn and winter released by the Pathfinder in 2012 is 60% larger than that in 2011. This data indicates that the outdoor sports apparel listed companies still have strong vitality, thus continuing the high growth trend of sports apparel stocks.

Two, after paying attention to channels, sports apparel enterprises began to return to quality in order to synchronize development of quantity and quality.

For example, the Pathfinder, the company learned from Lining and other sports apparel industry experience, not just for expansion, in the past 1-2 years, meticulous management, R & D and other soft power also attaches great importance to.

In order to improve the quality of the channel, the company has strictly screened the franchisees, phased out the smaller quality franchisees, and introduced the big sports companies such as gold crown and Baomori Michiyoshi in the early stage, which greatly enhanced the strength of the channel. Meanwhile, the company hopes to continuously strengthen its own product functionality. In the 2012 autumn and winter new products conference, it launched "TIFF innovative technology fabrics", "ice skid" series of climbing shoes, "air circulation shoes" and "T-Point carrying system" and other innovative technologies to continuously enhance the technological performance of Pathfinder outdoor products.

It can be seen that the listed companies with excellent management team have begun to realize the harmonious relationship between the expansion of quantity and the improvement of quality. Therefore, if the listed companies of the future sports apparel companies enhance their quality, the growth rate of the listed companies will remain strong in the future.

This fact has also been supported by such an information that a group of high-quality enterprises, with the help of IPO's capital, vigorously develop high-end varieties so as to achieve the purpose of competing with foreign high quality brands. For example, the relevant listed companies such as bar Jie, Jia Linjie, Tai Ya and so on, most of the fund-raising funds are invested in high-end products, which is expected to promote the improvement of the quality of sports apparel in China, so as to cater to the strong demand of Chinese consumers for sportswear.

Because of this, I tend to think that the recent changes in stock prices such as Pathfinder and Thailand share may be just the prelude to long term funds concerned about sports apparel stocks. After all, high growth is bound to get an overvalued value. Therefore, long term funds will continue to increase investment in the future market, so that the share price of traction sports apparel shares will continue to be strong.

Accordingly, it is suggested that investors should pay close attention to varieties with strong growth performance, such as Pathfinder and bar.

And Thailand shares and other varieties can also be tracked, because the company began to cut into the field of outdoor sports apparel, once the project successfully operated, then the company's growth will speed up, giving the company two tier market share price higher valuation premium, the short-term trend will be optimistic.