The Way To Save Oneself In The Winter Sports Industry: Adjusting Channels And Innovating Bravely

In 2012, it was chilly in spring.

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In mid January, PEAK announced that due to fierce competition and excessive distribution channel inventory, it adjusted the orders of Q1 and Q2. The total volume of orders in the first two quarters decreased by an intermediate range of 20%-30%.

Moreover, PEAK said it will close about 800 retail outlets, that is, the number of outlets has been adjusted from 7806 at the end of 2011 to 7000.

In January,

Also in mid January, Li Ning Co successfully raised nearly 800 million of its $561 million and $189 million convertible bonds to TPG, a well-known private equity firm, and GIC, a Singapore government government investment group.

In January 31st, the media reported that the sale of the Shanghai LVMH cosmetics company limited and the nine hundred group signed the lease agreement on the 1-5 floor of Nanjing West Road 993 (formerly Xiangyang children's world), which will become the first flagship store in the world.

At the moment, this is Baosheng sports YYSPORTS Sports City, and Nike is located in one of the two flagship stores in Shanghai. But, including Nike flagship store, the whole sports city will soon be closed.

In February 3rd,

In early February, Hongkong media reported that XTEP plans to issue a $100 million 3 year loan to the syndicate to replenish its working capital.

In early February, Fujian media reported that Adidas inspected the production base of the Philharmonic group and signed an order to produce sporting goods with the Philharmonic group. In 2012, the volume of footwear production is expected to exceed 5 million pairs.

It is worth mentioning that the Philharmonic group was once one of the leading enterprises in Jinjiang sporting goods enterprises.

Then, what is the water temperature or cold or cold of the sporting goods industry?

Domestic brands to fight for war

In 2011, Nike and Adidas's Greater China managers published their five year plan for the Chinese market, which has three points in close proximity. First, the goal is to achieve an annual average growth of over 10% in the Greater China region; secondly, to launch products at medium and low prices; thirdly, to sink into the two or three line market or even lower level market.

This seems to be a dangerous signal. "Foreign brands" are covetous to the core market of domestic brands.

In the Chinese market, Nike has Nike movement, Nike life, Nike children, UMBRO, CONVERSE and other brand formation, and has similar brand matrix.

Obviously, to compare with the Nike Ardi, it is necessary to learn from them.

At home, Li Ning Co is the earliest attempt at multi brand operation. The first choice of KAPPA brand China's operation right (after KAPPA business split and sale is for China trend group), then introduced the French outdoor brand AI Gao, the brand new movement, the introduction of Italy brand music, the purchase of sports equipment merchants red double joy and sports equipment merchant Kaisen, and also the Lining brand subdivision, cut into the children sports goods and sports life category, become a multi brand, multi category of comprehensive sporting goods manufacturers.

XTEP's multi brand operation cut into a relatively early time, which has introduced Spanish brand Colin and American brand Disney.

Anta then went on the road of main brand segmentation, extending Anta sports life category and Anta KIDS category, and subsequently incorporated the independent operation right of FILA brand China region, initially establishing a multi brand and multi category operation system.

From sportswear and footwear business to a comprehensive sports company integrating sports shoes, sports equipment and sports equipment, it has reserved a certain space for the industry to narrow the field and upgrade the sports consumption of all sports in the future, thus establishing a good development framework.

However, judging from the current situation of multi brand operation, the domestic brands of sporting goods enterprises are not strong enough. Some sub brands or sub categories are facing adjustment and selection. The Brand Company has increased the allocation of resources to the main brands, while the less profitable ones have been downsized and optimized, first of all, they have been supporting the yuan and developing in an all-round way.

In terms of market share of single brand, leading brands in China do not lose to Nike and Adidas, especially in the two or three tier market, and domestic brands firmly occupy the large market.

There are more than 280 prefecture level cities, more than 370 county-level cities and more than 1600 counties (including autonomous counties, flag, Autonomous Banner, special economic zone and forestry area), and there are about 30000 domestic sporting goods stores in the country, of which 60~70% shops are all open here, and the density of shops can be envisaged.

The consumption potential of sports goods in the two or three tier market has basically been excavated, and the market is in the stage of integration and consumption upgrading.

A large proportion of Chinese sporting goods consumers start with the consumption of low-end products.

With the continuous improvement of consumer's consumption ability, he hopes to get a higher consumption experience.

That is, after consuming low-end products, he tried to buy products that are more comfortable and more scientific and technological.

At the moment, inflation and the environment of the economy are not optimistic about the impact of consumer enthusiasm, low-end consumer groups to the middle end consumer groups upgrade channel is not smooth, but there are promising long-term market, which is Nike and Adidas ambitious development of the two or three tier market important reasons.

And the integration of the market means that the strong can stay, and the upgrading of consumption means that the consumers concerned in the past can not be bought into a focus on consumer trends, guide the consumption trend, and put forward higher requirements for brand marketing and design.

In the understanding of sports and the training of sportsmanship, Nike and Adidas are worthy of respect and learning from domestic counterparts.

The founder of Mr. Zhang Qing criticized the domestic brand in sharp criticism: "you do not spend time on athletes, pay no attention to the development of sports, and even do not want to struggle for communication with sports enthusiasts, just want to expose the opportunity, just want to pick up the peach to leave. Why else do you complain that others have taken your money, not to mention hello? What other reasons do you complain that consumers can't see you?" this may give some domestic brands a waking up, and the cultivation of sports is not a matter of a single day. The key road sports consulting company

Rome was not built in a day. The brand was not built in two days. It needs thousands of years of carving and polishing.

Peach picking must remember to timely cultivate and irrigate peach trees.

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Towards adjustment channel

Time goes back to 2011.

Lining and the trend first exposed the news of the repurchase stock. In the second half of the year, the large inventory problem of sporting goods was presented on its half yearly financial statement.

On the surface, there are two reasons why inventory is large. One is that sales forecasts are too optimistic, and the two is that terminal sales are lower than expected, resulting in backlog.

This seems to be the most typical evidence of a bad day in sports brands.

According to information, in September 2011, the clothing brand Metersbonwe stock amounted to 2 billion 982 million yuan, accounting for more than 83% of its net assets.

It seems that not only sports brand problems, casual clothing brands also have problems, the whole environment is facing similar problems.

Time goes back to 2000.

At that time, the number of clothing brands in the domestic market was very few, mostly imported brands.

The enterprises in the coastal areas supporting foreign brands, with the rapid development of domestic economy and the quicker pace of consumption upgrading, have begun to launch a marketing offensive with a high level of marketing by relying on the first pot of gold accumulated in production and processing. They have launched a vigorous movement of brand building. The channel has been rapidly followed up by joining the chain expansion. Over the past ten years, many brands have been surging in the north and south of the Yangtze River.

Compared with the large footwear industry, sports products industry is relatively small, with fewer benchmarks, and the following effect is most vividly displayed. The second is imitating the eldest and the third is imitating the eldest and the second. The operation mode is almost copied. The consumers of products are hard to distinguish. The image of the shop space is basically the same.

As time went on to 2012, after five years of rapid growth in 2005~2010 gold, the sporting goods industry ushered in a growth cycle.

Anta and XTEP have announced more cautious opening up and lowered the growth rate of orders in the first two quarters of 2012.

PEAK announced that the number of stores will be adjusted from around 7800 to about 7000.

From the standpoint of inventory, the sporting goods industry seems to need more stores to digest inventory products. Why do they choose to close stores and set up shop cautiously? Even the oldest Nike is no exception. In January 2012, the Nike flagship store of Xiangyang Building, Nanjing Road, Shanghai, chose to withdraw shops under high rent.

Luzhou, Sichuan, the core business district of 80 square meters of shops, rental 1 million yuan, Sichuan Wenjiang, the core business circle, 160 square meters of shops, rent 1 million 200 thousand yuan, many of the core business district of the street shops because of the high rent, only the rental capacity of the strong gold shop and cosmetics companies continue to expand.

The leading sporting goods retailer in Southern China leads the sport. In the case of high cost and low profit in the retail industry, it chooses to merge into the BELLE system. The Northeast market's Peng Da sports chooses to join Baosheng sports.

The bubble of commercial real estate is also changing the sporting goods retail industry to the road of adjustment in disguise.

The sporting goods industry has fallen from high income and high growth, and the competition in the industry market is fierce. This is the most painful period for the industry, either breaking the cocoon into a butterfly or becoming a dead caterpillar.

If we say that becoming a national chain brand is the first watershed of the sporting goods industry, this victory or defeat has been determined by the number of channels. Then, the second watershed is coming. The industry will turn from multiple brands to the national market, and a few brands will coexist with the national market. Some brands will become regional brands or subdivision brands, and some brands will turn to a certain division of the industrial chain. The comprehensive national sporting goods enterprises will be reduced to 2~3.

Or break through with innovation

Walking along the road of others, going faster, less tired of exploring the road, stepping on the footprints of others, and steady and fast, such beautiful things, many followers, many roads, more natural road corners, narrow roads, many walkers crowded forward, never thought someone would be pushed down the cliff.

Has anyone ever thought of making a rainy day and exploring the way ahead?

The homogenization of sports goods market is directly responsible for the low loyalty of consumers.

In the retail terminal of a product, the competition between brand and brand is often decided by price war. Winning a consumer and losing a consumer may be after a promotion war, which brings the industry into a vicious circle.

Sporting goods brand enterprises need to re-examine the objective needs and brand self-worth of the market, recognize the direction and take the courage to pioneer.

To solve homogenization, innovation is the first to bear the brunt.

Innovation is easier said than done.

To be brief, innovation means doing what others have not done. It is called trial and error, or trial and error. It takes second risks and third attempts.

In 2010, Lining carried out a large-scale reconstruction of the brand, the integration of channels, and the adjustment of the internal structure.

Judging from the present results, it may be that Lining's trial and error still has a long way to go.

Lining's price adjustment strategy did not take into account the status quo of the channel. Some consumers who could not agree with it and met with domestic inflation, the consumption of consumer durables in the middle end was tight, and the consumption upgrading channel was blocked.

But if we do not change, face the enemy of the invaders, then catch up and follow closely. How will Lining again? From another point of view, it is Lining's constant trial and error in front of him, which has brought valuable experience for the later ones to take a detour.

The reform of supply chain.

Some consumers say that Chinese brands, once famous for their cost performance, are now unable to afford to buy up after the price rises.

Over the past few years, prices have gone up too fast, the cost performance in China has decreased, and the cost in manufacturing process has been rising.

At present, most of the sporting goods manufacturers play the role of large wholesalers, making big marketing of products, selling products wholesale to distributors, and then wholesale distributors to retailers. The supply chain is too long, which weakens the cost performance of products, and the information distortion ratio of each link is too large. The inventory of retail outlets can not be effectively monitored by brand manufacturers immediately.

At present, the three level supply chain mode is slow to make decisions, and the turnover of products is not good enough.

At the same time, with the concept of wholesale, most Brand Company have extensive management of all links in the retail process, how to sell products at the terminal, how to operate products from listing to sales, promotional activities, display, sales and promotion, and whether the brand promotion activities are helpful to the terminal. Whether the product design takes into account the terminal needs or not? The brand merchants are too few to grasp accurately enough. Brand manufacturers need to lay down their posture, approach the terminal with a low profile, improve or even cut the supply chain, pay attention to every link of retail, and form an effective series between design, production, material flow, sales presentation, salesperson's ability and consumption feedback to get through all links of the whole interest chain.

In this regard, Decathlon is a model. It integrates product design, processing (outsourcing), and sales as a vertical industry chain. It has two roles: sporting goods manufacturers and sporting goods retailers. The production and marketing industry chain of shoe BELLE is also worthy of reference from colleagues in sports industry.

Some brands take Nike's light assets as an example, but don't ignore the fact that the brand's pulling force is not equal and the ability to control the channel is not equal.

The path of flattening the channel, returning to the refinement of management, making the interests of terminals and brands more closely linked, and opening up a new era of relationship between brands and consumers, will also open up the path of fine brand expansion, or will be the direction of the supply chain reform of sporting goods industry.

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The rise of sports industry and the two rise of sporting goods industry

China has the largest number of sports population, but quite a lot of people are confused in the word "Sports".

For students, maybe sports is just a lesson. For office workers, sports may be a game before the screen. For the elderly, sports are Taijiquan in the morning and disco at night.

From the Olympic Games or the world championships, China's sports delegation seems to be a big sports country, but from the maturity of China's sports industry, we are just the starting point.

According to national statistics, China's sports industry accounts for only 0.58% of GDP, and it does not say that 0.58% of our country has a big gap with the United States of America. In this small 0.58%, the contribution of sports goods industry and its circulation industry reaches 80%, while the development of sports fitness and entertainment, competition shows, sports education and so on are obviously lagging behind. The promotion and promotion of sports venues, venues and sports events have not yet been launched in all directions.

We have excellent athletes, but lack of star teams. We have broad and magnificent sports venues, but lack of wonderful sports events.

When we watched the Premier League and Serie A in front of the screen, we watched the French Open and the Australian Open in front of the screen. When we watched NBA in front of the screen and cheered for Lin Da Shen, the professionalization reform of Chinese sports began to falter.

In the next five years, the urbanization process has intensified, the government has made vigorous efforts to promote the national fitness program, the sports venues and sports items have increased correspondingly, the national strength and the people are rich, and the sense of sports will be further strengthened. The masses are not satisfied with the single sport of running and walking, the participants with more interesting sports skills and the increasing number of interesting sports participants will increase the consumption of sporting goods and fitness equipment, and the sporting goods industry will become a real beneficiary.

This may be the second opportunity for the sporting goods industry.

Today's adjustment is for tomorrow's health, and also for the future take-off.

The sporting goods industry will be better tomorrow.