Fujian Sports Brand Is Actively Expanding To Achieve Double Harvest Of Scale And Efficiency.

This year, about Sports brand The news of the store was endless. First, Gome sports closed its physical store and declared its 5 year store plan "wasted", followed by Nike's flagship store in Nanjing West Road, Shanghai, which was closed because of the rent rise. Anta , XTEP , Peak And other enterprises have also heard the news of closing some of the loss stores.

Having experienced the "barbarous growth" era of scale efficiency through crazy shops, the domestic sportswear brands have already encountered bottlenecks. Under the situation of intensified channel competition and rising costs, it is impossible to expand madly. Improving the profitability of single stores is becoming an urgent task for enterprises.

"Although large-scale closes have not yet appeared, the slowdown in store growth is a fact." Industry observers said. This 2011 Annual Report released by major sports brand enterprises in China has been reflected. The annual report shows that the number of new stores in Lining, Anta and PEAK last year was 340, 229 and 582, much lower than the number of stores in recent years. China's trend is "the first" annual number of shops showing a negative growth rate, a drop of 16.8%.

In addition to slowing down the pace of opening stores, the closure of some of the less profitable stores also become Sports brand The key to channel integration. Lining's "closed shop storm" began in 2010. At that time, analysts said that Lining would close 500 to 600 inefficient stores, and Anta added 229 new stores in 2011, but as of June 30, 2011, the number of Anta stores increased by 295. This shows that in the second half of, excluding the new stores of Anta group, the number of stores in China last year was close to 100. PEAK also said that this year will continue to implement the strategy of "opening large stores and closing stores to further enhance the average sales area of retail outlets".

The same phenomenon also occurred in the post Olympic 2009. At that time, a number of brands or agents including Puma, BELLE, Daphne and so on had carried out a round of "shuffle" with the theme of "closing shop".

"For sports brand, when the number of general stores increases to 6000, it will encounter" bottleneck ". Hou Lidong, the industry insider, told reporters that 6000 stores have become a "threshold" in the industry. Before that, sports brands can support performance growth by opening new stores quickly. However, beyond this scope, the speed of opening stores will obviously slow down, and the pulling effect of new stores on business performance will also be significantly reduced.

If the number of stores reached 6000 as a "threshold", then for the local sports brand, the "bottleneck period" has arrived, and the number of major sports brands in the domestic stores has exceeded this level.

"If the development channel can no longer bring revenue growth and higher profit margins to the brand, then the promotion of single store sales will become the best way for the brand to maintain growth." Yuan Wei, manager of Public Relations Department of Anta (China) Sporting Goods Co., Ltd.

"Whether the same store has a meticulous operation can reflect several times the sales volume." F Leonspan, Wang Quancheng, director of outdoor marketing, told reporters that with his brand as an example, 50 to 80 square meters of exclusive stores, a better online shop monthly turnover of about 300 thousand yuan, about 100 thousand yuan in general. A single store in Xi'an last year "May Day" activities, the sales volume of 10 days to reach 2 million yuan, "it can be seen that the promotion efficiency of single store is very large."

"Now sports brands attach great importance to a figure, that is, the performance of square meters, the higher the performance, the higher turnover rate, the higher the efficiency of single store sales." Insiders said.