The Crisis Of Inventory Is In Urgent Need Of &Nbsp Pformation.
Stock
Death
"Lining, it is possible to raise prices."
Anta
The price will never stop "," 361 degrees, more yuan "...
Recently, with the rise of the five major sports brands, such as Lining, Anta, XTEP, PEAK and 31st degree, all kinds of ridicule on the Internet have spread like wildfire.
Price increase is one of the direct reasons for high inventory.
According to the data, in the first half of 2011, Lining's inventory amounted to 992 million yuan, an increase of 186 million yuan compared with the beginning of the year. It plans to spend about 300 million yuan to redistribute the "unsold products" to the distributors. According to Lining group, it is expected that additional stock of about 1 billion 448 million yuan will be repurchased in the next two years.
In the domestic sports industry, not only Lining "depressed", entered the end of 2011, the major domestic sports shoes and clothing brands have announced third quarter performance, including XTEP, Anta, PEAK and other brands, including growth slowed down.
Among them, the problem of XTEP stock surge is more and more serious.
At the end of 6 2011, inventory was 887 million yuan, an increase of 424 million yuan over the same period, of which the product increased from 84 million yuan to 474 million yuan at the beginning of the year, increasing 4 times.
In the first half of 2011, the stock of XTEP reached 887 million yuan, an increase of about 92% compared with the same period last year. The first half of the year in Anta increased by 20.3% compared with the same period last year, and PEAK also made a 41% increase in worrying.
Recently, a Hong Kong media reported that Anta management admitted on the "enterprise day" that the order growth in the two quarter of 2012 will be lower than the 15% level in the first quarter. The industry will be full of challenges in the next six to 1 years, and it is difficult to guarantee the third and fourth quarter order results in 2012.
In addition, Anta planned to add 600 to 800 shops next year, and now it may also be adjusted downward because of the increase in the number of outlets.
Besides, in the sporting goods enterprises, the book inventory is only part of its actual inventory, and a large part of it has been sold to distributors but not sold.
In the case of XTEP's continuous development of new products, the stock that has been granted to dealers is likely to be faced with the pressure of repurchase and depreciation as Lining did, resulting in a sharp decline in net profit.
Industry analysts pointed out that the market demand for consumption is not high, is also an important reason for high inventory.
Starting from the second half of 2009, sports shoes
market
Gradual recovery, the growth rate of the whole year in 2010 is even faster, but this growth is based on the whole market downturn in the first half of 2008 and the first half of 2009. It is a replenishment process, not as strong as the market demand before and after 2003.
Most enterprises failed to make an accurate judgement of this expansion in early 2011.
As a result, you also expand production, I also expand production, when the market can not digest the excess capacity brought about by the expansion of production, there will be a lot of inventory.
slow down
Under the market environment where the overall capacity of the sports brand industry is generally overcapacity, and the overall inventory of the franchisees in various sports brand agents and business circles in the region is generally backlog, the overall market capacity of the consumers' sports brand has not changed fundamentally in the consumer environment where consumer confidence is generally insufficient and the consumption capacity is generally weakened.
In the background of the attack of foreign brands such as Nike and Adidas and the high homogeneity of domestic brands and the high similarity of goods, we want to make a difference in the effectiveness of inventory disposal, and the speed of inventory processing will become the decisive factor for the success of phased operation.
To ease the pressure on distributors, Anta, XTEP and PEAK have cut orders in the first quarter of next year, while voluntarily reducing the opening plan in 2012.
Due to the recent consolidation of consumer retail stocks, Anta said it expects to increase the total number of orders in the first two quarters of next year. Therefore, it will adjust the shop plan of Anta brand stores from 8200 to 7800 to 8000, and the number of Fila and other Anta's life series and children's series will remain unchanged.
Taking into account the worsening trend of the backlog of retail channels, PEAK's plan to open shop in 2011 has also been cut from 800 to 500 to 600. The company has reduced net sales from 400 stores to 200 stores a year. It is expected that 700 new stores will be opened next year and some 500 inefficient or loss shops are expected to close.
By the end of June, XTEP, which had 7438 stores, also slowed down its sales. It is expected that the number of retail outlets will reach 7600 to 7700 by the end of this year.
The 2012 shop plan is still under discussion. According to the current business environment, it is estimated that the number of retail outlets with a net increase in the next 12 months will be about 5%, significantly lower than the previously set target of 800 stores per annum.
Due to the serious backlog of industry inventory and the sale of brand distributors, the sports brand also took the initiative to reduce orders in the first quarter of 2012, pushing some of the orders to the second quarter of 2012.
Anta executives said that the more intense competition in the industry, the current retail discount will rise from 20 percent off to 30 percent off earlier, while giving distributors a more flexible retail discount policy, hoping to allow distributors to sell as soon as possible so that funds return to protect profits.
XTEP also recently announced a 10% cut in the first quarter of next year.
XTEP has made a high-profile announcement that orders will increase by 21% in the first quarter of next year, and double-digit growth in orders for clothing and footwear products, with an average price growth of 8% to 10%.
The initiative to reduce the order volume (including footwear and clothing) 10%, XTEP interpreted as "to control risks and ensure the healthy operation of the entire distribution system, advance terminal inventory management control".
{page_break}
Seize the hearts of consumers
Recently, the brand of sports shoes and clothing in China is setting up a domino effect. It is caught in a haze. Investment banks have lowered their ratings and their share prices have fallen sharply.
The reasons for this are that poor sales, sharp increase in inventories, discounts and goods have pushed China's sports brand to a "midlife crisis", and the industry has been in a period of adjustment.
"We are still optimistic about the future of sporting goods industry."
One industry insider said that the current stock generation is not a real market saturation, but a structural saturation.
But with the development of the market, consumers are becoming more and more "picky", and the individuation requirements for products are getting higher and higher.
"If sporting goods practitioners can provide enough attractive products, it is worth looking forward to."
The dilemma of sporting goods stocks such as Lining and XTEP is not without historical reference.
In fact, Nike, Adidas and other sporting goods "originator" also encountered excessive inventory trouble.
In 2008, as a sponsor of the Beijing Olympic Games, Adidas was overoptimistic about the market and increased its production scale. Unfortunately, it suffered from the global economic crisis after the Olympic Games.
It took Adidas more than two years to clean up the backlog of sales channels.
It can clean up huge inventory and play an important role in brand appeal.
According to the analysis of the industry, most of the local sporting goods brands in China start from the manufacturing processing industry, start from OEM foundry, and gradually develop into brand operation.
But the difference of brand and the added value of brand are generally low, and the innovation ability of domestic brand in product design needs to be strengthened. The similarities and differences among brands are often present, and the differentiation is not obvious. The phenomenon of homogenization is more serious. It is only through advertising some basic performance to appeal for some differentiation, but in fact, it is not too strong in the end consumer.
In addition, marketing tools are also stuck in the same old way. For example, traditional channels such as sponsorship and TV station naming and so on are scarce. Even if they burn money, the effect will be less and less ideal.
Now, in some relatively developed cities or regions, there are even signs of better consumption of high-end and new products.
This consumption trend is more concerned about the function and personality of shoes from the perspective of footwear products.
It is precisely because of this trend of consumption that shoe companies will have to increase their R & D efforts. Besides the quality and function of products, they should also attach importance to the enhancement of added value of products.
Compared with the price increase of raw materials, technological innovation is a greater investment, so this has become an important reason for many enterprises to improve product prices.
At present, the plight of domestic sports brands is just like the early rise of Chinese household electrical appliance enterprises.
In order to get rid of the dilemma of homogenization, enterprises should reconsider how to seek the next development from the aspect of upgrading the core value of the brand, or differentially shaping or integrating the industrial chain.
- Related reading
2012 China Shoe Machine Industry Trend Forecast And Enterprise Analysis
|China'S Shoe Material Market Is Showing A Trend Of "South" Enterprises.
|Wenzhou Microfinance Shoemaking Enterprises Or Restructuring Into Village Banks
|- Recommended topics | Upgrading Zhejiang'S Financing Mode And Promoting The Modern Industrial Cluster Of Shoes Industry
- Female house | Sound And Epic "Nine Post Long Song": The Perfect Combination Of Clothing And Shape Has Drawn A Gorgeous Oil Painting.
- Daily headlines | ZARA, H&M Become Quality Black List Frequent Guests
- Other | Japanese Textile Production Continues To Expand
- Female house | The Beauty Of "Lan Ling Wang" Is Astonishing.
- Association dynamics | A Dark Horse In The Textile Industry -- Sun Qiyin
- Recommended topics | 361 Degrees A 361 Degree Leisure Cycling Shoes Are Not Qualified.
- Project cooperation | Lanzhou New Garment Production Base Project Will Be Officially Launched In August.
- Recommended topics | A Suit Of Zegna Needs 500 Hands To Complete.
- Recommended topics | Longquan Industrial And Commercial Institute Has Found Counterfeit Brand Sports Shoes Worth More Than 90 Thousand
- Is The Workplace Name "Dear" Good?
- 2012 China Shoe Machine Industry Trend Forecast And Enterprise Analysis
- How To Make Effective Use Of Workplace Blanks
- Wenling Hengfeng Shoe Industry Domestic Market Encountered "Late Spring Cold"
- Wenzhou Shoe Companies Are Making Every Move To Boost Exports.
- 鞋服帽工傷程度被列為中等風險行業
- Three Line Market How Can Traditional Shoe Enterprises Effectively Realize Financing?
- China'S Shoe Material Market Is Showing A Trend Of "South" Enterprises.
- Shoe Materials Enterprises Join Hands With Terminal Brands To Promote "The Two Venture"
- Wenzhou Microfinance Shoemaking Enterprises Or Restructuring Into Village Banks