Extensive Operation Of Local Sports Brands Leads To Overproduction.

Although there are less than 80 days to go before the opening of the London Olympic Games, it is still true to the mainland.

In terms of brand, the days of 2012 seemed uneasy.

"Going to stock", "adjusting structure" and "slow cutting" have become the main problems they are facing.

Whether for brands or distributors, 2012 will become their inventory digestion year.

"Product"

The price is close to each other, the growth of industry is restricted by the limit of the growth of the channel, and the inflation of the economic environment and the decline of purchasing power result in the emergence of inventory problems.

In view of the reasons for the high inventory, the independent critic of the industry is Ma Gang.

However, more people in the industry attributed the fact that the expansion rate of local shoes and clothing brands exceeded the growth rate of the market.

Chen Xiangjiang, a sports brand dealer, told reporters that the high growth of sporting goods in the past few years has attracted a large number of enterprises to enter the industry. In order to seize the market quickly, enterprises often take the way of quickly opening stores and expanding their capacity, ignoring the endurance of enterprises themselves and the market.

"For example, the original market has increased by only 20% a year, and the enterprise has produced more than 60% of the products. A large number of products have naturally become a backlog of goods. For example, the original sporting goods shop in one block is nearly saturated, some enterprises continue to enter, shops rent naturally rises, and the profits of single stores are bound to slide."

Chen Xiangjiang said.

A data from Dongxing securities also showed that the number of new local sports brand enterprises listed in 2007 to 2009 reached nearly 2, and the number of terminals increased by nearly 2 times at the end of 2009 compared with the end of 2006.

In fact, in 2010, the expansion of domestic sporting goods enterprises' channels was faster, and the top three or four enterprises almost broke through 7000 barriers at the same time.

The rapid expansion of the channel exacerbated the conflict from the channel, to a certain extent, the hidden danger of high inventory.

In addition to the speed of expansion, the extensive operation of local shoe and clothing enterprises in production and sales, to a certain extent, also makes production deviate from the actual demand of the market, thus forming high inventory.

It is understood that most garment enterprises plan to determine the number of production through the order, the general clothing enterprises can be ordered four seasons a year, according to the order quantity of the site customers to determine.

And then arrange the production. This mode, because of relying on channel providers to provide information, rather than consumers, often leads to lower sales of clothing than expected, resulting in backlog.

In addition, enterprises usually exaggerate demand when making inventory turnover plans.

"For example, consumers need 100 items of clothing, and retailers think they need 150, and agents think they need 200 pieces. They will expand to 250 factories, that is to say, every time they sell 1 items, manufacturers will have to prepare 2.5 items at least for inventory turnover. Sometimes they will exceed that proportion, thus forming a large number of stocks."

Insiders said.

"Inventory pressure will also form a conductive effect in the industry."

Dong Xinda, deputy general manager of the shoe net, said: "when the domestic stock of first tier brands is overstocked, and entering the stage of digestion and inventory, on the one hand, it will affect the orders of downstream OEM enterprises. On the other hand, while the first line brands expand sales through promotion, consumers' demand for the two or three line brands will be reduced, resulting in a reduction in the sales of two or three line brand products and an increase in inventory."