Domestic Sports Brand Clothing Plunged Into "Inventory" Crisis 30 Percent Off Sales Still Hard To Make Money

For Shenyang.

According to industry analysis, domestic sports brand dealers will withdraw from the market within two years because of the low profit margins of domestic sports brand dealers.

Domestic brands are in stock crisis

Yesterday, reporters in Shenyang Taiyuan Street stadium, a number of sporting goods stores found that Lining, Jordan, Anta and other domestic brands are priced at around 300 yuan, are 30 percent off sales.

According to sales personnel, although discount sales, but last winter to now, including Lining, Jordan, Anta and other brands, including domestic brands, there is a slowdown in performance growth.

According to the announcement of the major domestic sports brands, in 2011, the domestic sports brands collectively appeared large inventory phenomenon, and cleaning up inventory was the major work of major sporting goods brands.

The major domestic sports brands are now stranded in inventory and the industry is in a period of adjustment.

JP Morgan's analysis reports that Li Ning Co's annual revenue will fall 13% in 2011, and profits will fall 60%.

Growth is slowing as well as PEAK. The data released by PEAK show that PEAK's performance growth has slowed sharply in the third quarter of 2011, while the same store sales in the third quarter of 2011 increased by only 6.2% compared with the same period last year.

PEAK's orders increased by 20% year-on-year.

Earn too little, agents escape

Due to the increase of raw materials and labor costs, the domestic sports brands began to adjust their prices from the end of 2011, and the unit price rose by 10% - 20%.

However, due to the diversification of consumer demand, more and more brands such as business, leisure, outdoor and life have been chosen.

At present, the demand for sports brand is becoming less and less. Due to the decrease of purchasing power, the reporter found that sportswear sold by sports brand dealers is below 30 percent off sales.

Because of the low profit margins of agents and domestic agents, the agents began to run away and manufacturers began to take direct camp.

Analysis of the industry, it is expected that within two years, all manufacturers will be directly engaged in sales.

Statistics show that more than half of the agents choose to "run away" now.

International brands impact domestic brands

The mainstream of sportswear brand sales in the market is still dominated by Adidas and Nike, and its dominant position is difficult to shake in the short term.

These domestic sports brands mainly occupy the low-end consumer market of the two or three tier cities.

Because domestic brands mainly include XTEP, Anta and so on, there is not much distinction among brands, the phenomenon of homogenization is more serious, and the competition among brands is more intense.

At the same time, when domestic brands are busy, international brands have begun to exert their strength to the two or three tier cities in China.

Among them, Nike and Adidas have indicated in the future that they will increase the store construction in the two or three tier market, and intend to launch products that are more close to the two or three line market.

Data show that domestic brands from two or three line cities accounted for 70%-80% of revenue.

This will have a greater impact on the sales of domestic brands.