Lining, XTEP, Anta And Other Sports Brands Are In A Predicament Of Growth.

With the Li Ning Co's layoffs, domestic sports brand growth has become the focus of public concern.

Lining, Anta, XTEP and a number of listed sporting goods enterprises, in 2012, the latest order meeting data, inventory backlog, planned new stores are all at the worst level in recent years.

Will the domestic sports brands encounter the downward turning point of the collective industry? Will the layoffs be opened?

Local sports brands are in a dilemma of growth

Just after the Spring Festival, Li Ning Co announced the layoffs to reduce staff costs.

Shao Ligang, chief consultant of a clothing consultancy company in China, told reporters: "the reason why Li Ning Co has laid off is that there is a problem with the open source of the company. There is no way to cut down the expenses through layoffs. This is the simplest mode for enterprises to get profits.

But once the company is laid off, it shows that the funds of the enterprises are already under great pressure.

In fact, it is not just sports tycoon Lining who has been caught in the market growth dilemma.

Reporters learned from Anta, which once surpassed Lining's turnover, that the rising cost and the backlog of sales channels further exacerbated the competition in the domestic sporting goods retail market. The group is expected to face some pressure in the future.

In addition, PEAK said that the demand for China's sporting goods industry slowed down in 2011, and the competition became increasingly fierce. The surplus Library in the distribution channel of the group continued to increase in recent months.

The sales of -12 month in November 2011 dropped sharply, and the channel inventory ratio increased to 4.2 times in the fourth quarter. The rate of new stores is also the slowest in history.

The aftermath of "Crazy" expansion

From the expansion track of the domestic sports brand, we can find that with the help of the east wind of the Beijing Olympic Games and a wave of listing in Hong Kong, sufficient capital is even more powerful for enterprises.

According to Dongxing securities apparel industry analyst Tan Ke tracking

However, behind the crazy expansion, there are many problems, such as scale growth decline, high market concentration, high inventory and so on. This explains why a number of listed companies have lowered their sales expectations in 2012, and even reduced costs through layoffs.

"Listed companies have a certain cash reserves and smooth financing channels, and are so cautious that the two or three line unlisted companies will be more difficult."

Zhang Qing, President of brand promotion research institute "key sports", said.

Li Guangdou, a brand strategy expert, said that the competition of local sports brands changed in 2011, and Anta surpassed Lining in its business income.

"At present, the predicament faced by local brands is that" before they have strong enemies, then there are soldiers pursuing them. "In the case of severe homogenization of products, local brands did not grow well after the Beijing Olympic Games.

In addition to the above symptoms, Tan can predict domestic sports.

Domestic sports brand outlet geometry?

According to the industry analysis, sports brand enterprises are facing not only the homogenization competition pressure of the same industry, but also the extrusion of the leisure industry market.

On the one hand, a large number of low-cost local brands, which have the ability to quickly make up and pfer goods, blossom everywhere. On the other hand, ZARA, UNIQLO and other foreign brands bring forth new ideas, all of which create pressure on the local sporting goods industry.

"The Li Ning Co announced that it was only the first Domino to start layoffs, and the layoffs of other sports brands will start."

Shao Ligang told reporters that 2012 is bound to be a very difficult year for domestic sports brands. Since 2008, the "bomb" planted in the market of sports brand crazy expansion will be detonated one by one, and the cold spring of the sports brand has arrived, to see who can get through.

The industry generally believes that the local movement after the crazy expansion.

"Sports brand has spiritual and cultural connotations. If local brands want to break through, they need to combine with fashion, art and other elements to create cultural symbols that meet the needs of the times."

Li Guangdou said.

Zhang Qing also suggested that under the premise of serious homogenization of the brand and a large surplus of low-end products, if we want to ride out this period and have the opportunity to grasp the industry opportunity to rush out of the tight encirclement, I am afraid that we still need to return to the track of value innovation.