Local Sports Brands, Fashion Products, Overseas Fronts

Lining announced in the second half of last year that he spent about 300 million yuan on the sale of "unsold products" to distributors. It is expected that the group will need to repurchase about 1 billion 448 million yuan of inventory in the next two years. China has previously expressed its $220 million "pre tax non regular provision" for repurchasing excess inventory from dealers. XTEP also solves inventory problems by lowering order targets and slowing shop opening speed. But XTEP stresses that it will not buy back stocks in the future, nor will it substantially shut down stores.

Analysts believe that the repurchase stock is basically the news of 2011, intended to solve the problem of turnover of goods, so that the updated products to the terminal in time, if there is no problem with terminal commodity turnover, the problem of repurchase does not exist naturally. At present, the scale of sports goods industry is nearly saturated, and the key to terminal operation in 2012 is to digest inventory, ensure channel health and raise single store profits.

At the end of last year, Anta took the initiative to reduce orders in the first quarter of 2012 and postponed some orders to the second quarter of 2012. Anta executives said that the industry competition is becoming more and more intense. The retail discount will rise to 30 percent off from the earlier 20 percent off. At the same time, a more flexible retail discount policy will be given to distributors, hoping that the distributors will sell the goods as soon as possible so as to keep the profits back.

Yuan Wei, manager of Public Relations Department of Anta (China) Sporting Goods Co., Ltd. believes that in view of the market changes and the increasing competition in the industry, Anta has adopted more flexible arrangements for new and integrated shops to improve the efficiency of distribution networks. In the face of rapidly changing market environment, Anta believes that enhancing the efficiency of single store is more important than increasing the number of stores.

In response to the backlog problem, PEAK adopts the method of "terminal zero inventory". At the PEAK Q2 2012 order meeting last year, PEAK announced that in order to maintain the sustainable development of enterprises, the principle of "terminal zero inventory" was adopted, and the amount of orders placed by the distributor and the corresponding production volume were produced by the factory. In accordance with past industry practice, the order volume will go up to a certain proportion on the basis of actual demand, that is to say, a part of products may become the inventory burden of dealers.

At that time, PEAK completely abandoned the industry practice and reduced the dealer's pressure to zero. According to the needs of distributors, production and sales can greatly reduce the inventory and capital backlog, speed up capital turnover, reduce inventory management costs, avoid market changes and product renewal, resulting in price reduction, unmarketable risks and so on. The pressure of dealers will be reduced, and the corresponding liquidity and development capabilities will be greatly improved, which will help improve the overall management efficiency of the supply chain.

In this regard, PEAK CEO Xu Zhihua said: "everything for dealers. At present, influenced by the RMB exchange rate and the tightening policy of monetary policy, the economic environment is not clear, and the market will inevitably generate some fluctuations. Under such circumstances, we need to protect dealers' safety and smooth through this very special period. Headquarters will also provide more support to those relatively disadvantaged dealers. "Terminal zero inventory" is a measure and attitude that PEAK is willing to share with the distributors.

Xu Zhihua believes that "terminal zero inventory" does not mean a reduction in profits. "For PEAK, who aspire to become an international company, it is in order to win the future by actively changing and changing the traditional concept of growth based on heroes."

China's trend has not been much better since last year. Its turnover in the first half of last year was 1 billion 179 million yuan, a decrease of 45.1% compared with the same period last year, and net profit of 225 million yuan, down 71.2% from the same period last year. China's trend announced that in the first half of the year, in order to help dealers solve the backlog problem, the group took the initiative to reduce sales orders and inventory repurchase measures, so as to help dealers resume normal inventory level as soon as possible.

Open up a new front for fashion products and markets

In order to tap the new profit growth space and avoid the serious competition in the sports goods market homogenization, some sports brands choose to differentiate operation from marketing means or market areas, so as to open up new living space.

In its annual report this year, 361 degrees announced that a new brand combining sport and fashion was officially launched. At the 361 degree exhibition hall, the person in charge told reporters that the logo of the new brand "Shang" was formed by the combination of the digital 361. The new brand will be positioned in the high-end sports and fashion market, which can effectively fill the empty space of the 361 degree group in the high-end market and the fashion sports field, and at the same time, it can bring some new experiences to 361 degree professional sports.

The official said that as the high-end sports brand of 361 degrees, "Shang" is more targeted at young fashion people who love sports, such as college students, business white-collar workers, designers, street sports enthusiasts and so on. This young consumer group is optimistic and positive, eager to show itself. "New fashion sports life" is exactly what they pursue and enjoy, and it is also the "Shang" brand concept. For this reason, "Shang" hopes to integrate sports and fashion into a new high quality lifestyle and attitude towards life through the pursuit of sports, fashion and fashion.

Coincidentally, Zhengda sporting goods Co., Ltd. has also stepped up the pace of brand entering the "fast fashion" concept this year. General manager Guo Jingqing explains that from sports to fashion, the breakthrough of Zhengda is the overall change of China's sporting goods market. After more than 10 years of rapid development, the footwear industry in China welcomed the adjustment cycle in 2012, and formally shifted from the era of channel bonus to the era of commodity retailing.

He said that a very significant trend is that shoes and clothing are becoming fast moving consumer goods. When the "bump shirt" is gradually disliked by the young urban consumers, when the foreign fast fashion brands are attacking the Chinese market crazily, when the e-commerce channel makes the consumption behavior simpler, the market requires the clothing brand manufacturers to constantly innovate and create fast fashion adaptability. To successfully shape the role of the leader of the new fashion dress in the city, Chia group invited the European design team to join in, combining the popular culture of sports and the current urban youth, explaining the unique style of the new urban fashion.

Analysts believe that sports brand extension from sports attributes to fashion and leisure attributes is not new. In terms of international brands, Nike's products have been styled and professionally subdivided, and Adidas has introduced the "Shamrock" and "Y - 3" sub brands in fashion. Domestic brands, Anta launched a few years ago in the field of fashion, which is different from the professional sports field of life leisure shop. In the shop, Anta's equipment has a series of jeans, besides a series of fashionable products.

The reason for this extension is not just branding business in order to expand the product market, the person said. Nowadays, in the modern life, consumers are increasingly diversifying their demands. In order to cater for this new demand, brands need to add fashionable, leisure elements and even business elements to the attributes of sports.

Go abroad to open stores

Under the pressure of inventory, sports brands have chosen to slow down the expansion of domestic terminal stores, but overseas stores are not listed here. For example, PEAK has focused its attention on the United States and other places.

PEAK's 2011 Annual report shows that at present, PEAK has more than 30 agents in the world, and there are more than 200 agency sales outlets all over the world. As of the first half of 2011, PEAK's overseas sales accounted for 9.9% of total sales.

Last month, PEAK announced the opening of its flagship store in Melrose Avenue, West Losangeles's Hollywood. PEAK said it marks its official entry into the world's largest sporting goods market and began competing with the international sports giant Nike and Adidas. According to introducing, this PEAK American flagship store is a comprehensive concept Street store, which is next to the famous fashion street Melrose in Losangeles. There are many famous fashion brands nearby. Before that, another flagship store of PEAK's concept of basketball was opened at the end of last year. This store is located in the city of Karl, Losangeles, and is located on the same floor as Footlocker, Footaction and other famous sporting goods stores. It mainly sells PEAK brand sports shoes, sportswear and accessories. PEAK's special products for NBA stars will be the focus of display and sales.

"Opening a store in the United States is a milestone for us to implement the strategy of internationalization of the market." Xu Zhihua, PEAK CEO, said he hopes to penetrate the wider international market with the help of the United States' powerful radiation capability in the global market, and become a truly international brand.

According to introduction, PEAK's opening up the US market is just a symbolic move. In the whole world, PEAK has made use of its marketing resources and experienced distributors to dig the potential of the market. Taking sports resources as marketing carrier, PEAK has tried and achieved remarkable results in other international markets. Sponsored state-level sports resources go deep into New Zealand, Iran, Serbia, Australia and many other countries and regions, making use of their local influence and appeal to successfully penetrate their brands into the local market and open up sales outlets for dealers.

Reporters learned that in recent years, Anta, XTEP, 361 degrees, Hongxing Erke, and other sports brands in Quanzhou have also actively promoted in the overseas market.