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    Where Is The Sporting Goods Industry?

    2012/5/23 8:53:00 14

    Sporting GoodsPEAKSports Expo

    From the main gate into this session Sports Expo The E1 Museum of sporting goods clothing and accessories has found out that Lining, Anta, XTEP and 361 degree four special brands are listed on both sides. The exquisite venues and decorations, various exhibits, let visitors from all sides clap their hands.



    However, behind this bustle, there are many worries. The 2010-2011 development report of China's sporting goods industry, released for the first time at the current sports Expo, pointed out that after years of rapid development, the sporting goods industry began to enter the industry adjustment period. From the performance of the listed companies of the major sports brand companies in 2011, the growth rate of the sports industry slowed down gradually due to high inventory, rising cost and net profit decline.


    Where will the sporting goods industry go in the future? Many people in the industry have been thinking.


    It is understood that orders will start in the first half of this year. Competition in the mainland sporting goods industry is fierce and pressure on many companies' profits. Many enterprises are discounting the potential stock risks of retail channels to reduce orders that have not yet been shipped.


    The decline of ordering data also reflects the development of the sports industry to a certain extent. After years of rapid growth, the sporting goods industry has come to a comprehensive adjustment.


    This phenomenon is evident from the annual reports released by major sporting goods brands last year. Although the sales of several sporting goods brands including Anta, 361 degrees, PEAK, XTEP and others have increased year by year, the rate of increase has dropped to 20% from 20% or 30% in the previous years. Lining's sales performance, which once sat firmly in the domestic sporting goods industry, was also down compared with the same period last year.


    Corresponding to the decline in revenue growth is the slowdown in the pace of brand opening.


    In the past few years, people in the industry referred to the growth of Chinese local sports brands in the past few years as "barbaric growth". During this period, the increase in the number of stores has almost become the "magic weapon" for many manufacturers to increase sales or profits. However, from the second half of last year, many people in the industry began to find that several giants were more cautious when using this magic weapon.


       Peak The annual report shows that in 2011, the number of PEAK retail outlets increased from 7224 at the end of 2010 to 7806 at the end of last year, with a net increase of 582. Analysts note that in the first half of 2010, the number of PEAK's stores increased by more than 590, which means that the number of stores in PEAK began to shrink in the second half of 2011. Previously, PEAK has disclosed that the number of stores will be reduced to around 7000 in 2012.


    Anta, XTEP, and 361 degrees also cut shop speed in the second half of 2011. This situation is also in sharp contrast to several high-profile brands announced in 2010 to enter the era of "Wan Dian".


    "Store rent costs are getting higher and higher, compared with the decline of single store sales. Under such circumstances, several brands will be more cautious and comprehensive when they open their stores. Now they will pay more attention to the benefits of single store. " Some people in the industry use this sentence to explain the underlying causes of this change.


    The number of orders is declining, and the speed of shop opening has slowed down. Besides these two mountains, there is also a mountain on the sporting goods industry: inventory.


    People in the industry have joked that even if all garment enterprises in China stop production now, only the backlog goods in the warehouse can be sold to the domestic clothing sales enterprises for at least 3 years. The seriousness of inventory backlog problem in footwear industry is evident.


    "Due to the rapid development of the industry over the past few years, enterprises are generally optimistic about market expectations, overinvestment in the whole industry and oversupply of products," Zhang Qingru, founder of sports consulting firm, said. Admittedly, the issue of product homogeneity and low brand value has always been criticized by local enterprises. However, with the advantages of cost and channel, local enterprises have been able to take a place in the market. In Zhang Qing's view, all the problems that appear in the industry today are not the coolness of the "investment surplus" is the most direct fuse. "The sports industry is a futures system, and enterprises are very important for future market judgement. If we want to increase our expectations and increase output and expand our channels, we will not be able to keep up with sales because of various factors, which will be followed by recession and adjustment."

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