Jordan Sports Needs To Play Down "Jordan" Brand And Develop New Brand.

In an industry with international expansion characteristics, such as sporting goods, Jordan Sports But chose at home. list It may be to avoid the international legal risks of using the "Jordan" brand logo.

But after the first two Lining and Anta went to Hong Kong, they left A shares. market What is the intrinsic value of the "first sporting goods concept stock"?

　 　 industry Competition: average sales of single stores are far behind.

At present, the competition of sports brand tends to be white hot, and the whole industry is in a situation of oversupply. Major sports brand Products with the same quality and high product substitution have greater impact on the operating profit.

The competition in sports apparel industry is mainly reflected in the competition of brand manufacturers. At present, the sportswear market has basically formed the situation of dividing the world with the international brand and domestic brand.

International brands mainly include Nike, Adidas, Puma, Kappa, CONVERSE, MIZUNO and so on. Such brands are priced at a high price, and the audiences are mainly concentrated in the economically advanced one and second tier cities, occupying relatively high-end market.

There are about 20 influential sportswear brands in China, including Lining, Anta, Jordan, PEAK, 31st degree, XTEP and so on. Domestic brands are priced moderately, and the market advantages in the two or three tier cities are more obvious. They are working hard to compete in the first tier cities and compete for the international brand market share.

Statistics show that by the end of 2010, there were 7915 marketing shops in Lining, with sales revenue of about 9 billion 500 million yuan in 2010, 7549 stores in Anta, and 7 billion 400 million yuan in sales throughout the year. XTEP has 7031 stores nationwide, and the annual sales income is about 4 billion 500 million yuan.

By the end of 2010, Jordan's brand stores reached 5374, operating income was 2 billion 900 million, and sales revenue was sixth in the list of independent sports apparel brands. However, compared with the top five industries, Jordan sports still has quite a gap. In particular, the average single store sales income is far behind the top five. This seems to be a matter of quality.

Zhu Qinghua, a light industry researcher at CIC, said that because of the serious homogenization of sports brands, the links of R & D, brand marketing and other aspects of products are particularly important. The listing of Jordan will enable them to have more sources of capital, and strong financial support will help their research and development and brand building.

But on the other hand, for brand building, especially towards internationalization, Jordan sports has a congenital problem. As a brand, the word "Jordan" is probably a two time bomb that has not yet erupted.

According to market participants, "although Jordan's trademark and brand have been recognized in China, they are not necessarily recognized overseas. The United States has legal protection for the names of celebrities. Jordan chose to go on the market in China. Trademark and brand is a relatively important reason. If Jordan sports wants to go abroad and needs and gradually dilute "Jordan" brand, it is necessary to develop new brand.

　 Sales mode: more credit sales, less direct sales.

Jordan sports mainly sells through terminal stores.

The sales performance and business development ability of dealers are one of the key factors for the growth of Jordan sports business performance in the future. However, there are some hidden dangers in this mode, which is mainly due to the fact that Jordan sports used credit sales to dealers. The Jordan international prospectus shows that the dealer has granted a certain amount of credit to the dealer, allowing him to buy goods on credit from the company within a certain limit and return the payment to the company within the agreed time.

Industry analysts said: the demand for cash flow in the consumer goods industry is relatively high. Once the dealer's credit sales are too large or the time is too long, it will have a negative impact on the production and operation of Jordan international. The problem now is that the accounts receivable of Jordan international are increasing year by year.

At present, Jordan sports accounts receivable is mainly for the receivable of dealers. As of June 30, 2011, December 31, 2010 and December 31, 2009, Jordan's sports accounts receivable were 583 million 782 thousand yuan, 384 million 517 thousand and 600 yuan and 340 million 42 thousand and 100 yuan respectively, accounting for 33.29%, 20.89% and 30.49% of current assets respectively.

The balance of accounts receivable in December 31, 2010 increased by only 13.08% compared with the end of 2009. The balance of accounts receivable in June 30, 2011 has increased by 51.82% over December 31, 2010.

For the increase in accounts receivable this year and last year, Jordan sports explained that in order to help dealers have more capital to invest in the market, speed up the sale of products and reduce inventories, it is appropriate to relax the repayment of distributors. But it also shows that Jordan is still raising the main revenue by expanding the scale of credit sales. This will obviously increase the risk of bad debts in the financial sector.

Zhu Qinghua said: "dealer sales mode is the advantage of Jordan, through cash settlement can effectively improve enterprise capital flow. However, once the company allows credit sales, it is a kind of abandonment of the original advantages, and it has a greater impact on Jordan. "

Market participants said: "dealer sales mode compared with the direct mode of operation, the gross profit margin is relatively low. In addition, the main mode of dealers is, inevitably, Jordan sports will not have enough control over terminal retail stores, so accelerating the promotion of Direct stores is the next thing Jordan needs to do.

At present, Jordan sports has 5561 dealers and terminal retail outlets, 7 direct retail outlets, and 147 shopping centers.

Compared to Jordan's sports, the 7 small single outlets, Lining, Anta and other brands are relatively dominant, taking Lining as an example, the number of Direct stores is close to 500. Moreover, in order to improve the retail profits, Lining has begun to vigorously integrate the distributors' stores since 2010.

In the future, integrating distributors' stores and upgrading the number of direct outlets should be a major trend in improving the profitability of large sporting goods brands. In this respect, Jordan seems to have not yet started.

　 Fortune story: the Ding family enjoys billions of capital feast.

According to the press release, in 2010, the total profit of Jordan sports was 664 million 522 thousand and 100 yuan, the total share capital after the issue was 562 million 500 thousand shares, and the diluted earnings per share were 1.18 yuan / share.

Li Weidong, chief analyst, predicted: "Jordan's main business is the design, production and sale of sports shoes, sportswear and sports accessories, relatively relatively simple. International brands such as Adidas and Nike have now extended their tentacles to cosmetics, while domestic brands such as PEAK, Anta and so on also have casual wear, casual shoes and so on. Lining even has such brands as women's wear and women's clothing. So Jordan's bargaining space will be relatively low, PE valuation may be about 35 times more reasonable.

Jordan sports currently only 6 shareholders, the largest shareholder for Fujian hundred Group Holdings 291,28.5 million shares, accounting for 64.73%, if calculated by 35 times the market rate, the shareholding value may exceed RMB 12 billion 30 million yuan.

Ding Guoxiong and Ding Yezhi hold all the shares of Fujian hundred group. At present, Ding Guoxiong is the chairman of Jordan sports.

Jordan sports second and the sixth largest shareholder are also members of the Ding family. The second largest shareholder, Ding Jiafang (director Jordan), holds 72 million 810 thousand shares, which is Ding Yezhi's younger brother, worth about 3 billion 7 million, and sixth largest shareholder Ding Shijie (Jordan's director and deputy general manager) is Ding Guoxiong's nephew, holding 9 million shares, worth about 372 million.

Above the Ding family, Jordan shares 85.61% of the total value of sports, which is worth about 15 billion 409 million yuan. The listing of Jordan sports can be attributed to the family's capital feast.

But market participants said: "the share of the large shareholder's family is too high. Jordan sports has some actual controllers to control the risk."

In addition, Ding Canhui, the third largest shareholder of the company, belongs to the Ding family. He holds 36 million 405 thousand shares of Jordan and has a value of about 1 billion 504 million yuan. There is little description of Ding Canhui in Jordan sports prospectus, but simply put forward an early business partner for Ding Guoxiong.

Statistics show that Ding Canhui's residence is located in the village of Chai village, Jinjiang, Fujian Province, and the residence of Jordan international real controller, Ding Kwok and Ding Yi, is also the same as Chen Bian village. A fellow townsman has the same surname, believing that Ding Canhui has a very close relationship with Ding Guoxiong and Ding Yezhi.

Such a high proportion of shares are concentrated in the hands of the same family. Whether the company can maintain independence and transparency after listing is the next thing to be concerned about.