Listed Sports Brand Profits Collective Decline

Anta sports shoes

Recently, all the countries in China

The listed companies announced their earnings in 2011, and the net profit of the local "one brother" Lining plummeted by 65.2%, and the Chinese trend of price beating also hurt itself. Net profit fell by 93% during the reporting period.

The growth rate of XTEP, 31st degree and other companies slowed down. The net profit growth last year was 11.5%, 18.8% and 16.8% respectively.

According to statistics, as of the end of 2011, the inventory of all sporting goods companies increased by 25.7%-81.8% compared with the same period last year.

"In the past few years, wholesale mode has played the most important role in the rapid expansion of the sporting goods industry.

Listed companies only need to deliver products to distributors to confirm sales, and then distributors pfer inventory to sub distributors.

This model has a low capital expenditure burden and no need to recruit salesmen for the opening of new stores. "

An industry researcher analyzed, "before these Brand Company are ready to go public in Hongkong, they intend to increase sales by extending the credit period of distributors and increasing sales rebate awards.

After successful listing in Hongkong, the company has enough cash support to give distributors a long credit period and subsidize them to expand the network quickly, and the backlog of retail inventories ".

In the eyes of listed companies, discount sale is a magic weapon for inventory.

According to a researcher's channel research, the price war in the sporting goods industry is getting more and more intense. "Even the new products, Anta and PEAK are playing 15% off and 12% off respectively, and the inventory is 3-5."

"Most of the inventory will be sold through existing stores, which is expected to damage brand value in the long run."

The researcher said.

Sports brand is a small industry with smaller market capacity and consumers' convergence.

There is almost no product differentiation among companies.

In addition, Nike and other major international brands take the whole market by cutting prices. At present, enterprises are experiencing the most difficult time, and the valuation of sports goods listed companies will also be suppressed.

One industry insider said.