Local Sports Shoes And Clothing Brands Face Competition Choice Crossroads

December 26th hearing

In contrast to the great success of Adidas in the Chinese market in 2011, the performance of domestic sports shoes and clothing brands declined.

In October, the major domestic sports brands announced third quarter results, including domestic brands such as Lining and Anta.

Data show that the inventory of Li Ning Co in the first half of the year amounted to 992 million yuan, while the inventory value at the end of 2010 was 806 million yuan, and the stock amount increased by about 200 million yuan.

Affected by inventory and other factors, the company's income in the first half of the year was 4 billion 289 million yuan, a decrease of 4.8% from 4 billion 505 million yuan in the same period last year, and net profit of 294 million yuan, down nearly 50% from the same period last year's 582 million yuan, and its share price has fallen by nearly 50% since the beginning of the year.

The same slowdown is also accompanied by PEAK. The data released by PEAK show that PEAK's performance growth slowed sharply in the third quarter, compared with the same period last year, the same quarter sales increased by only 6.2% in the third quarter.

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%.

Anta sports business in the third quarter has also declined sharply.

According to the expected data released by Anta, sales growth in the same quarter in the third quarter has declined, while the retail discount rate has also expanded.

To this end, Anta cut the order volume in the first quarter of 2012, and voluntarily reduced the opening plan in 2012, from 8200 to 7800 to 8000, and the number of stores in FILA and other Anta's life series and children's series remained unchanged.

According to the industry, local brands have achieved high surface growth over the past few years, but they have also brought many sequelae.

For this reason, Lining started the channel integration action in 2010. Now, in the "critical point" that the industry growth rate has slowed down significantly, other sports brands will inevitably change the industry shuffling.

"High growth is a good thing, but high growth also obscures some problems. PEAK now needs to enter the stage of internal structural adjustment."

PEAK group CEO Xu Zhihua said.

For this reason, PEAK took the initiative to reduce the quantity of futures orders in the second quarter of 2012, and adopted the principle of "terminal zero inventory", and the number of orders placed by the distributor, and the corresponding volume of products produced by the factory.

"In accordance with the needs of distributors, production can greatly reduce inventory and capital backlog in production and sales process, speed up capital turnover and reduce inventory management costs."

Zhang Tao, vice president of Anta group, also said that the current footwear industry is facing a period of adjustment.

"In the past few years, the growth of mainland sports brands was too fast. Now it is a steady return. This is a cyclical problem.

But the industry outlook and growth rate is no problem. This cycle is a process of adjustment from the perspective of enterprises.

According to the survey, so far, domestic sports brand sales outlets have 70% layout in the two or three line market, and the increase in the number of stores in the two or three line market is one of the driving forces for the growth of domestic sports brand performance.

But at present, in the two or three line market, the number of sporting goods stores at home and abroad has reached more than 40 thousand, and the consumption potential of sports goods market has basically been excavated, making it harder to make money in new stores.

Although Lining, Anta, XTEP, 361 degree, PEAK and other domestic well-known brands have already gained popularity in the first tier cities in China, the main selling channels of these sports brands are still concentrated in small and medium-sized cities in China.

At present, many consumers in the two or three tier cities choose Anta and XTEP as the first choice for consumption.

Experts said, on the one hand, this is because many domestic sports brands already have a certain reputation; on the other hand, it is also because the international sports major has not yet penetrated into this part of the market.

With the strong invasion of international brands such as Adidas and Nike, the two or three domestic line and even the three or four line market will make the original market structure of sports consumer goods facing the shuffle.

In the future, the impact of local sports brands will be more and more serious.

At such a turning point, it is time for the domestic sports brand to "change its sword" and change.