In The Past Six Years, The Sales Volume Of Sports Shoes And Clothing In China Has Increased.

The thirtieth China International Sporting Goods Fair, which was closed soon ago, released the 2010-2011 development report of China sporting goods industry (hereinafter referred to as the "report"). The report said that in the past 2006-2011 years, the added value of sports goods industry (sports wear, sports shoes, sports equipment and related sports products) increased year by year, with an average annual compound growth rate of 17.63%. It is expected to reach 176 billion yuan in 2011, accounting for more than 80% of the sports industry. At present, "made in China" occupies more than 65% of the world's sporting goods industry. China is also the world's second largest sporting goods consumer market next to the United States.

　　 Domestic sports brand Developing inflection points?

With the development of China's garment industry, its sporting goods industry has also developed rapidly. The report shows that during the "11th Five-Year" period, the average growth rate of domestic sporting goods brand stores was about 10%, and the sales growth rate was about 20%. However, since last year, the pace of development of China's sporting goods industry has begun to slow down. In particular, the 2011 Annual Report of sports brands listed in China shows that industry growth is slowing down due to high inventory and rising costs. In the future, under the background of overall slowdown in industry growth, competition among brands will further intensify.

Once brilliant

If not mistaken, for a long time CCTV sports channel, from the title of the news column to the sports events, can see the names of some famous sports brands in China. Of course, this is one of the means of their brand marketing. Under the help of this large-scale CCTV advertisement, sports brands such as Anta and XTEP have gained a higher reputation. Moreover, more importantly, millions of advertising fees, and these sports brands are not soft at all.

Indeed, at least in the first ten years, many domestic sports brands have been developing rapidly, both from the number of their shops, or to the "heroism" of advertising.

Lining is the leader of the sporting goods industry in China. Since the establishment of the company in 1990, Li Ning Co has developed a strategy of multi brand development, and has many brands such as Lotto, in addition to its core "Lining" brand. In addition, Li Ning Co also held the Shanghai red double happiness group, and wholly acquired Kaisheng sports. {page_ Break}

In 1996, Lining integrated Beijing, Guangdong, Yantai and other three companies to establish Lining sporting goods group, and Lining herself served as chairman of the board and served as general manager at the same time. It has been reported that from 1997 to 2002, Li Ning Co has always maintained the first place in China's domestic market share. In 1999, when Lining reached 700 million yuan in sales in China, Nike had only 300 million yuan in China and Adidas only 100 million yuan.

In June 28, 2004, Li Ning Co listed on the Hongkong stock exchange, which is now the largest domestic sporting goods company in China. At the opening date, its opening price increased by 8%. Li Ning Co raised about HK $530 million by issuing 246 million 500 thousand shares. The initial public offering of shares issued to retail investors was 132.2 times subscribed, while those issued for the agencies were 11 times subscribed. Due to the strong demand for retail investors, the proportion of retail issue oriented retail outlets expanded from the initial 10% to 50%. After six consecutive years, Li Ning Co's performance has maintained a high growth rate, reaching 8 billion 387 million yuan in 2009.

In addition to Lining, Fujian sports brand represented by Anta, PEAK, XTEP and 31st degree has been developing vigorously in recent years.

In the early days of development, these brands, in order to gain a higher market share, are able to quickly open stores in the two or three tier cities to achieve their goals by means of agents and franchising channels.

For example, since its establishment, Anta has expanded more than 2000 stores in just a few years, and its density is large. It has been reported that in 1999, Anta's sales increased by 35%, which has won a large market share, especially in North China, Northwest China and Guangdong. It is understood that as of 2010, Anta has more than 7500 stores.

　　 Anta The Board believes that Anta's strategic landlords are attacking the two or three line market to gain huge growth potential. For example, Anta has opened 13 stores in the Kunshan county market of Jiangsu. Its formats include standard shops, specialty stores and discount stores, so as to maximize the market share through multiple formats.

At the same time, Fujian sports brand, with its strong advertising campaign and supplemented by celebrity endorsement, has brought about obvious effects and gathered a lot of wealth. Data show that since 2004, Fujian Jinjiang shoe enterprises have invested more than 6 billion 500 million yuan in CCTV and local satellite TV only. Experts in the industry say that taking Anta as an example, opening up sports marketing is the biggest secret of their success. In addition to hiring Kong Linghui in 1999, in 2004, they signed the "CBA only designated sports equipment" for 7 years at the price of 25 million yuan per year under the condition of annual sales of only 310 million yuan.

In the Autobiography of basketball sports management center of former State Sports General Administration, Li Yuanwei recorded the following: "after signing with CBA, Anta's sales in 2005 amounted to 670 million, 1 billion 250 million in 2006, 2 billion 980 million in 2007, 4 billion 630 million in 2008, 5 billion 870 million in 2009, and the annual growth rate was nearly 100%."

However, with the development of the market, many grassroots brands, which originated from small workshops, have gradually faded away from the grass-roots brand through the strategy of brand incubation. They have begun to think more about the soft power of brand culture and brand reputation.

Taking Anta as an example, Anta started thinking about how to build Anta brand reputation 10 years ago, and began to try to sponsor professional sports events, such as 8 years of cooperation with CBA. Anta's brand reputation has been increasing by grabbing the top resources representing China's sports and sports. When Anta first sponsored CBA, the CBA club's athletes were less than 70% less satisfied with Anta products. To this end, in 2005, Anta spent about 30000000 yuan to set up the first sports science laboratory in China, tailored sports shoes for CBA players, and Anta took a series of other measures. Now, the CBA club members' satisfaction to Anta products has increased to 97%. {page_ Break}

In addition, it is worth mentioning that sports brands such as Lining, XTEP, Anta, PEAK, and 331 degrees have been listed and have a high degree of listing in the clothing industry. After all, the listing can not only make large-scale, increase profits, but also promote the reform of enterprises themselves, and promote enterprises to integrate with the international market.

Winter is coming?

No matter which industry, it is impossible to maintain a high speed development forever. So is the sporting goods industry.

Influenced by the international financial crisis, the domestic sporting goods industry is also troubled by the problems of rising raw material, raising the cost of manpower, increasing the rent of the shops, declining profits, and increasing the rational consumption attitude of the domestic consumers. The further development of the international sports brands in China has brought severe challenges to the domestic sports brands.

In 2011, Li Ning Co annual report showed that the company achieved operating income of 8 billion 929 million yuan, a decrease of nearly 500 million yuan from last year. At the same time, gross profit dropped by 8.02 percentage points to 46.1%, but still ranked first among the five major sporting goods companies. At the same time, Lining did not gain effective control in the case of no significant increase in revenue but a slight decrease of 5.8%. The total cost of distribution and administrative expenses increased by 3% to 3 billion 223 million yuan over the previous year.

In addition, according to the annual reports of listed companies such as Anta, PEAK and PEAK, their growth rates have slowed down. Anta said that the company achieved net profit of 1 billion 730 million yuan last year, an increase of 11.5% compared with the same period last year, while its net profit growth in 2010 was 24%. Meanwhile, the turnover increased by 20.2%, and the turnover growth rate dropped by nearly 6 percentage points compared with that in 2010. The annual report of 31st degree last year also showed that the sales revenue in 2011 reached 5 billion 570 million yuan, up 14.8% over the same period last year. Net profit of 1 billion 130 million yuan, an increase of 15.3% over the same period last year, and net profit growth also declined compared with 30.5% in the first half of 2011. PEAK sports performance data show that in 2011, PEAK's operating income was 4 billion 647 million yuan, up 9.4% from 2010's 4 billion 250 million yuan; 2011 net profit of 778 million yuan, compared with 822 million yuan in 2010 fell by 5.4%; In terms of profit margin, net profit margin decreased from 19.4% in 2010 to 16.7% last year.

Nowadays, the cold sports industry is not related to their extensive development mode at the beginning. The rapid expansion of the number of stores has brought a lot of pressure to the late brand operation. The way of "rural encircling the city" type of channel expansion helps sports brands rapidly establish the market scale. The lofty aspiration of the "Wan Dian era" seems to be a beautiful oath, and the refinement of channels becomes a pressing matter.

As early as October 2011, Anta announced that the number of stores in 2011 will be reduced from 8200 to 7800-8000. Yuan Wei, manager of Anta public relations, said in an interview with the media: "in view of market changes and increasing competition in the industry, Anta will adopt more flexible arrangements in the area of new and integrated stores, and upgrading store efficiency will be more important than increasing the number of shops."

PEAK's sales network points increased from 7224 at the end of 2010 to 7806 at the end of last year, with a net increase of 582, but in the first half of 2010, the number of PEAK sports outlets increased by more than 590, which means that the number of PEAK stores began to shrink in the second half of 2011. PEAK has disclosed that the number of stores will be reduced to around 7000 in 2012.

Some people in the industry believe that the era of sports brand relying on big stores to gain sales growth has ended. This development mode is not sustainable. The number of single brand sports shops increases with the number of shops opening, and its marginal efficiency decreases and the efficiency of single stores decreases. More importantly, the frequent rise of store rentals in recent years has further reduced the profit margins of the brand. Sporting goods industry analyst Ma Gang believes that after a certain number of stores reach a certain level, the expansion of the channel will encounter bottlenecks. It is difficult to maintain a relatively fast growth in the case of single store profits.

According to media reports, Nike, an internationally renowned sports brand, closed its store in Nanjing West Road, Shanghai, due to the pressure of rising store rentals. International brands are still not up to rent, let alone domestic brands.

In addition, the recent inventory problem in the sporting goods industry is a lingering nightmare. Lining annual report shows that in 2011, the average stock turnover time of Lining was 73 days in 2011, which increased by 21 days compared with the 52 day of last year, almost twice as fast as that of Anta sports, which had the fastest turnover rate. Higher inventory increased Lining's inventory provision to 188 million yuan in 2011, which was 63.48% higher than that in 2010.

The 31st degree Bulletin shows that the inventory of the brand in 2011 was 4 billion 512 million yuan, 81.8% higher than that of 2010. The annual report of Anta also showed that, as of December 31, 2011, the stock of Anta was 618 million yuan, up 36.1% from the same period last year, compared with 454 million yuan in the same period last year.

It seems that it is neither easy nor urgent for domestic sports brands to get rid of the problem of high inventory.