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Sports Brands Create Factories And Shops

2012/1/7 16:53:00 22

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Frequent shops

Consumer

It is easy to find that recent Sports

brand

Factory store has quietly increased, and the products of famous sports brands such as Nike, Adidas and Lining can be bought at the price of 44% off or even 66% off, so they are very popular.

Why did the shops in this factory come into being in recent years and increase rapidly? The Li Ning Co daily released in Hongkong in 2011 seems to have disclosed some.

Clue

。

According to the China Daily, as of June 30, 2011, Li Ning Co's revenue was 4 billion 289 million yuan, a decrease of 4.8% compared with the same period last year. The reason for the decrease in revenue is that, besides the increase of raw materials and labor costs, the company's initiative to recover inventory from distributors is also an important reason for the decrease in revenues.

Zhang Zhiyong, chief executive officer and chief executive of Li Ning Co Ltd, said that this year, 300 million yuan will be invested to recycle the inventory of dealers. The amount of recycling will be no more than this year.

It is reported that Li Ning Co has opened 191 factory stores, specialized digestion of inventory.

Zhang Zhiyong said that the proportion of inventory cleared income in January this year accounted for about 6% of Li Ning Co revenue, rising to 10% in June this year, and will reach 15% in the future. It is estimated that by the second half of next year, inventory will basically be digested.

Zhang Zhiyong said that increasing the construction of clearance routes will be an important part of Li Ning Co this year.

strategy

。

There are three main types of clearance: factory stores, discount stores and temporary stores.

Among them, the factory store is the most important form of strategy.

According to his introduction, Lining's factory store is running well now, and the average monthly flow of a single store reaches 400 thousand yuan, which is higher than the average single store month of Lining discount stores and brand stores.

Amount of running water

It is the most efficient form of storefront.

Among them, Beijing's most popular Xidan Huawei factory store has a monthly turnover of up to 1 million 200 thousand yuan.

In addition, Zhang Zhiyong said, the more important value of factory shops is to help maintain the brand. Before the construction of factory shops, discount shops are selling discount all year round, which is not conducive to brand image building.

With the clearance channel becoming an important part of the whole channel structure, we can form factory shops and discount stores to carry out quantity competition.

It is reported that Lining will continue to increase the number of factory shops, and the number of factory shops will increase to about 240 in the future.

The impact of construction clearance strategy and other reform measures is emerging. It is reported that the first quarter of 2012 fiscal year Lining new product orders will be successfully concluded, the order amount increased year by year, the number of orders reversed three consecutive quarters of downward trend.

Zhang Zhiyong said, "we think this is a good sign, and the reform initiatives taken by the group are gradually gaining results."