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    The Low Demand And High Inventory Problem In The Post Olympic Era Troubled The Sports Brand.

    2012/6/25 9:53:00 15

    LiningLondon Olympic GamesPEAK

    Recently, Lining The company announced that its fourth quarter 2012 order data showed that the total order volume recorded a high double-digit percentage decline. Among them, the order amount of shoes products resulted in a low double-digit decline year by year, while the annual decline of clothing products was more than 20%. This shows that under the situation of relatively weak market demand, the stock pressure of Li Ning Co will not be reduced, and the level of profitability will also be affected.


    In fact, in this Olympic year, the days of domestic sports brand enterprises seem to be unsatisfactory. Peak 361, Anta and other sports brand enterprises are also faced with low demand and high inventory problems in the post Olympic era.


    In the Olympic year, however, they encountered a market downturn, which made them somewhat unprepared. In order to cope with the shrinking market demand and avoid new inventory pressure on the retail side, some enterprises have adopted a discount marketing strategy. However, although this can make the sales volume rise in the short term, it is difficult for enterprises to help enterprises achieve the rapid market share in the long run. In the context of rising cost of raw materials and labor costs, this practice is more difficult to become a driving force for sustainable development of enterprises.


    The rain is coming here, and the sunny side is shining. A sharp contrast with the domestic sports brand business is not optimistic. Adidas Nike and other international brands rely on accurate marketing strategy and market positioning, plus their brand influence, not only the market share gradually stabilized, but also the profitability has always been at a high level. With the international brands' "catching up and blocking", the days of domestic sports brand enterprises will be increasingly sad.


    Then, how should the domestic sports brand enterprises face the current market situation? First, we must further improve the precise positioning of the brand. The success of Adidas and Nike is largely due to its precise market positioning, namely high-end professional sports products. In contrast, domestic sports brands are more or less vague in positioning. Li Ning Co has tried to brand remodeling, but the effect is not ideal, the company's orders do not rise or fall. The reason is precisely because the new brand positioning is not clear enough, leading to the new target group has not been properly arrested, the original group has not maintained, in the end, can not pick up sesame, even watermelon is also lost.


    Two, we should promptly adjust our marketing strategy and devote more energy to product innovation and research and development. At present, almost all sports brand enterprises in China regard celebrities in sports as "top guests" and "shake Qian Shu", trying to enhance brand awareness and enhance market share through celebrity effect. However, today's celebrity endorsement behavior has been in flood. Enterprises invest a lot of costs every year, but ignore product innovation and research and development. According to reports, in 2011, the advertising expenses of 6 enterprises such as Anta, PEAK, XTEP and so on were as high as 4 billion 977 million yuan, while the R & D expenses were only 900 million yuan. In the short term of market decline, it is difficult for enterprises to accept the heart of "eating into a fat person". They should focus more on product innovation and research and development, expand the market with new products, lead the fashion with new products, and win the future.


    Three, we should further explore the connotation of sporting goods and create new market demands. While making full use of the two domestic and international markets, sports enterprises should actively promote the development of leisure and outdoor areas in an appropriate way, and further improve product lines with the support of precise brand positioning, try to avoid homogenization competition among the same industries, and seek new growth points in differentiated products and services.

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