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    Local Sports Brand Performance Worries &Nbsp; The Pace Of Expansion Of The Channel Can Not Be Slowed Down.

    2012/3/15 9:52:00 6

    Sports Brand Nike Lining Market

       Peak The 2011 results released by sports show that the company's turnover in 2011 increased year by year, but net profit fell 5.4% year-on-year. Anta and Lining issued earlier related announcements also showed that in the net profit growth also appeared to a certain degree of decline.


    "For PEAK, 2012 is a year of adjustment." Liu Xiang, director of public relations of PEAK, said that in fact, PEAK had started related adjustments last year, including channel Order policy, shop strategy and marketing strategy.


    For the difficulties encountered by local sports brands, a number of people interviewed by reporters have expressed pessimistic expectations. The reason is that in the case of rising costs of raw materials, store rentals and manpower, the profitability of local brand shops has not been improved in a timely manner, thereby weakening the overall profit.


      Local sports brand performance worries


    A few days ago, PEAK sports released its 2011 performance data in Hong Kong. In 2011, the turnover of PEAK was 4 billion 650 million yuan, an increase of 9.4% compared with 2010, and net profit of 780 million yuan, down 5.4% compared with 2010.


    In its annual report, PEAK said that the main reason for the increase in turnover during the year was the increase in market demand for the group's products and the continuous expansion of China's distribution network. Data show that as of the end of last year, the number of PEAK distributors increased from 45 at the end of 2010 to 50, and the number of retail outlets increased from 7224 at the end of 2010 to 7806, with a net increase of 582.


    In terms of profitability, PEAK's net profit margin dropped from 19.4% in 2010 to 16.7% in 2011. PEAK said the decline in net profit margins was mainly due to the increase in advertising, promotion and R & D costs.


    In terms of profitability, many sports brands previously published in the annual reports are not ideal.


    Anta's annual report released in 2011 showed that the company achieved net profit of 1 billion 730 million yuan last year, an increase of 11.5% over the same period last year, but the net profit growth rate dropped by more than 10 percentage points over that of 2010 (24%). Meanwhile, Anta's turnover increased by 20.2%, while its growth rate dropped by nearly 6 percentage points compared with 2010.


    Lining released the 2011 performance bulletin, also known as the slow growth of orders and the recovery of some dealers inventory impact, group income in 2011 is expected to decline 6%~7% compared with 2010, and net profit will also be lower than 2010 11.7% 7~8 percentage points.


      Slow pace of channel expansion


    Throughout the 2011, the sports brand industry is full of bad news, including Lining's closing shop trouble, and the growth of individual brand orders.


    In the past few years, people in the industry referred to the growth of Chinese local sports brands in the past few years as "barbaric growth". During this period, the increase in the number of stores has almost become a "magic weapon" for many manufacturers to increase sales or profits. But looking at the data of the 3 brands in 2011, it is easy to see that the growth rate of stores has begun to slow down, and the contribution to performance has begun to be weak.


    Data show that in 2011, the number of PEAK stores increased by 582, but in fact, the company had increased by 590 in the first half of last year, which means that PEAK had begun to reduce the scale of stores in the second half of last year.


    The same is true for Anta. Although it has announced that it will enter the era of "Wan Dian" once in a high profile, it actually lowered the target of 8200 stores in October to 7800 to 8000 as early as last year.


    "For PEAK, this year is a year of adjustment," Liu Xiang, director of PEAK public relations, said in an interview with reporters. Specifically, on the channel, agents are no longer the role of wholesalers in the past, and begin to transform from wholesale enterprises to retail enterprises. On the strategy of opening up, PEAK will open larger retail outlets and close more smaller and less efficient retail outlets through distributors and retail outlets operators.


    Ma Gang, an independent critic of sports industry, also expressed similar views. market The pattern is mostly distributed in the two or three line market, but due to the extrusion of international brands, the two or three line market is already in a state of saturation. The focus of future channel expansion is on the four line market including some counties, but the profitability of the whole market is still unknown, which needs to be tested by the market.

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