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    Many International Brands Want To Enter The Two Or Three Tier Cities To Clean Up Inventory.

    2012/7/3 22:19:00 11

    Beijing OlympicsNikeXTEP

     

    Borrowed four years ago

    Beijing

    The Olympic Games Dongfeng, let the local brand of China's sports industry grow rapidly in the five rings. However, the excessive expansion of distribution network, the high homogeneity of products and the tightening of the macro environment made the sports brand industry begin to get tired gradually in early 2012, and still struggle to survive.


    With international brands such as Nike and Adidas, they want to rush into the two or three tier cities that mainland brands are best at.

    Analysts and industry sources said that China's local brand competition is going to start. The medium and small and second tier brands are expected to face greater challenges.


    Some analysts expect that in the elimination campaign of the local sports brand, the current 1 or 20 brands will be concentrated to five to six.

    According to relevant data, in 2012, the scale of China's sporting goods market was 124 billion 700 million yuan, up 16.32% from the previous year, 2010 and 2011 when the growth rate reached about 35%.. In 2012, Nike accounted for 10.50% of China's market share, followed by Adidas, Lining and Anta.


    The following are the 2008 Beijing Olympic Games and the comparison of the number of brand stores in China's six major sports markets in 2011, and the sorting out strategies of each of them.


    Number of stores:


    In 2008 2011, it increased by three years.


    1. Lining 2331.HK8255624532.19%


    (market capitalization: about $679 million)


    2. PEAK sports [1.27 -2.31%] 1968.HK7806517950.72%


    (market capitalization: about $389 million)


    3. Anta 2020.HK7778566737.25%


    (market capitalization: about $1 billion 800 million)


    4. 360 1361.HK7681605526.85%


    (market capitalization: about $514 million)


    5. XTEP 1368.HK7596505650.24%


    (market capitalization: about $881 million)


    6. China trend [0.71 1.43%] 3818.HK3119280811.08%


    (market capitalization: about $571 million)


    Strategies for cleaning up inventories and facing international brand competition:


    Lining: will clean up the retail terminal.

    Stock

    Level, control the speed of new stores and close inefficient stores. Hope that the retail end's goal can reach an average of 24% off. The short term will consolidate the existing market before the international brand has yet to enter, and the medium and long term will focus on brand innovation and segmentation and find its own positioning.


    PEAK: we will further optimize and adjust the structure of retail outlets, open large stores and close stores, further enhance the average sales area of retail outlets, and continue to focus on expanding retail outlets in China's two or three tier cities.


    Anta: this year, the pace of store expansion will slow down, and plans to add 220 stores, 229 fewer than the previous year. In order to control inventory, we should adopt a more flexible arrangement to adjust the orders which have not yet been produced and shipped. The order volume of the annual order will be recorded in a high unit of several hundred points.


    31st degree: increased competition from international brands will continue to optimize the brand image and ensure product quality through innovation and research. The number of shops opened in.2012 has been adjusted to 600, compared to 602 last year.


    XTEP: this year's opening strategy will not focus on new stores, but will optimize existing stores to increase sales in the same stores.


    China's trend: close the distribution of irrational distribution and unprofitable stores, optimize the distribution of sales channels, effectively improve the whole

    Sales efficiency

    And the profit margin of dealers, and use online sales to speed up the digestion of inventory.

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