Olympic Marketing Still Needs To Continue, Brand Inventory Remains To Be Solved.

After a variety of sales wars, local sporting goods

The problem of inventory is still not solved well. With the consumption of London Olympic Games this year, the performance of many brands will still be greatly affected.

In August 21st, three major local sporting goods brands, PEAK, 31st degree and XTEP, also issued semi annual reports. Among them, PEAK's performance in the first half of the year fell sharply, and net profit decreased by 43.3% to 239 million 700 thousand yuan. The corresponding decline in performance was the decline in gross margin, down 2.2 percentage points to 37.7% compared with the same period last year, while the gross profit decreased by 32.3% to 610 million yuan.

In the first half of the year, the Chinese newspaper Sun Yang hit a turnover of 2 billion 869 million yuan, down 9.9% from the same period last year, and net profit of 596 million yuan, down 22.9% from the same period last year.

On the contrary, XTEP did not invest too much in the Olympic Games, but it was more stable. The company significantly reduced the number of shops and cleaned up the inventory, so that the net profit of the company maintained a slight increase of 0.3%.

Collective "deduction"

"Fast" is a major feature of the sporting goods industry, but fast pushing goods and updating goods makes it difficult for the industry to get the same quick digestion.

The turnover of inventory in the first half of the year was 45 days, an increase of 5 days compared with the same period last year.

XTEP's inventory balance in the first half of the year was as high as 700 million 900 thousand yuan, and the average inventory turnover days did not decline, which was still 82 days.

The situation of PEAK is even more serious. The total stock has increased by 107 million yuan, and the average turnover period has increased from 49 days in the previous year to 86 days. The average receivable and receivable turnover days increased from 66 days to 121 days.

One side is high inventory, and the other is a little order.

For example, in July this year, the order volume of the order meeting in the first quarter of 2013 in July was calculated by wholesale value, which was about 15%~20% lower than that of the same period last year.

In this regard, some sports brands have adopted a reduction of wholesale discount (hereinafter referred to as "deduction") to stimulate dealers.

In this regard, Anta and 31st degree are at the forefront of other sports brands.

In the autumn of December 2010, the order for the wholesalers will be adjusted to 60% from the previous 62%, and the 2012 spring / summer order will be further adjusted to 58% in 2011.

PEAK also said that since 2012, the company has reduced the deduction to distributors, but the increase in rebate and sales costs has been offset.

The rise in the price of a single garment led to a decline in the gross interest rate in the first half of 2012.

Anta also announced earlier that in order to reduce the potential inventory and discount risks of retail channels, the group continued to adopt more flexible placement arrangements.

At the same time, the wholesale discount rate will be reduced in 2013.

Commentator Ma Gang said that this is simply to enhance confidence in the channel.

In the adjustment period of the sporting goods industry, a separate deduction is defensive strategy.

Marketing expenses

Although most brands did not increase their marketing costs this year because of the London Olympics, some brands also had high hopes.

The sales and advertising expenses in the first half of this year were 2 times that of last year, and the pressure on group funds increased.

The debt ratio rose from 3.2% in the same period last year to 10.8% this year. The accounts payable and bills turnover days increased by 25 days to 144 days, and the accounts receivable and bills turnover days increased 15 days to 104 days.

Zhao Feng, director of sports marketing, said recently that the investment in London Olympic Games was at least 6 times that of the 2008 Beijing Olympic Games.

Even more, PEAK sponsored only one Iraqi team in 2008 and sponsored 7 this year.

A person who has studied sports brand for a long time reckon that PEAK's investment in Olympic Games has increased by at least 7~10 times this year.

However, there are also brands that are not optimistic.

The marketing effect of XTEP is one example. Even if Gatlin, the bronze medalist of the Olympic men's 100 meter sprint, sponsored the Olympic Games, the advertising and promotion expenses of the company were lower than that of 2011, which was 297 million 900 thousand yuan, accounting for about 11.4% of the total income of the group. In 2011, the figure was 303 million 100 thousand yuan and 11.8% respectively.

Moreover, these brands are not as strong as they did in the past few years.

By the end of June, PEAK's number of retail outlets in China decreased by 747 to 7059 at the end of last year.

According to the company's retail network optimization plan, by the end of 2012, the number of retail outlets will also be reduced to 6500.