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    The Number Of Sports Brands In China Is Facing Bottlenecks.

    2012/1/20 15:24:00 20

    Lining Brand Clothing BELLE Daphne

    Following the recent closure of its sports store and the announcement of its 5 year 100 store plan, people in the industry revealed to reporters that China's trend is

    Sichuan

    Some shops will be closed for business, similar to the trend of "closing shop tide" in 2009.


    Reporters on January 12 to China's headquarters to verify, but the other side said that it did not understand this situation, did not confirm.


    According to the analysis of relevant personages, the experience of "barbaric growth" has been achieved through the crazy shop opening to achieve economies of scale.

    Clothing brand

    Bottlenecks have been encountered. Under the situation of intensified channel competition and rising costs, it is almost impossible to expand madly. Improving the profitability of single stores is a pressing matter of the moment.


    Closing shop continues to appear.


    "Large-scale shops have not yet appeared, but some places already have" signs ".

    "In January 12th, the independent critic of the industry, Ma Gang, told reporters.


    According to Ma Gang, in the Sichuan area, the most obvious one is China's trend stores.

    He said that although official data were not available, according to his understanding, some of the stores in China should be suspended.

    "Many places could see their stores before, but now they don't have any.

    Ma Gang said.


    Recently, sportswear brands have been closed shop frequently.

    Less than 4 months ago, the first physical store of Gome, Beijing's Cai Man Street store, was closed. A few days ago, Gome sports announced that its Wanquan River store in Beijing was closed in January 8th.

    So far, the Gome sports shop officially opened in May 2010 was "completely annihilated".


    Lining's "closed shop turmoil" should be traced back to the end of 2010.

    At that time, analysts said that Lining would close the 500~600 shop, but Li Ning Co immediately clarified that it was only about integrating 500~600 inefficient distributors instead of closing stores.

    Although Lining has always claimed that the goal of opening stores in 2011 has not changed, there is an indisputable fact that the number of new stores has begun to decline.


    A similar phenomenon occurred in the post Olympic 2009.

    According to reporters, including

    Puma

    MIZUNO, BELLE,

    Daphne

    Several major brands or agents, including others, have carried out a round of "shuffle" with the theme of "closing shop".

    In the same year, sales of Nike, Adidas and Puma declined in China, while Nike closed its own shoe factories in China in that year.


    For the major sports brands, the 2008 Beijing Olympic Games is undoubtedly a good opportunity to "go to market".

    The "Crazy" shop, which has never stopped, has led to the market's digestive ability behind the post Olympic era.


    At present, sports brands are also under pressure, but according to some industry analysts, this is quite different from 2009.


    An insider who declined to be named pointed out that for sports brands, the number of ordinary shops increased to 6000~7000 when they encountered a "bottleneck". For the over pursuit of the scale of stores, the subsequent expansion has been weak, so the current phenomenon of closure or licensing is understood as the manufacturer's "self reflection".


    Ma Gang pointed out that for Chinese trend and Gome sports, the pressure of channel competition and cost increase is more obvious than that of brand dealers.


    According to the reporter, at present, due to excessive pressure on sales of stores, some manufacturers have begun to buy back their stock by way of "decompression".

    Ma Gang believes that this is also a reflection of the aggravation of terminal sales pressure.


    If the number of stores reaches 6000~7000 as a "threshold", then for the local sports brand, the "bottleneck period" has come.

    According to the reporter, at present, the number of major sports brands including Lining, Anta, PEAK and 331 degrees has exceeded the above level in the mainland, but the enthusiasm of sports brands for channel expansion still seems to continue.


    Anta has already announced its own "Wan Dian plan", while other mainland brands have begun to "Penetrate" into the two or three line markets such as the West.

    But the anonymous sources pointed out that the sinking of the channel did not solve the fundamental problem.

    In his view, as long as the number of stores has been growing, brand operators will eventually face the problems of store rentals, human costs and material costs. For local brands who have already suffered from international brands' attack, upgrading the profitability of single stores is the fundamental solution.

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