Lining, Anta, XTEP And Other Sports Brands Encounter Winter Sports Products Industry Knockout Will Be Staged.

"Olympic year" has always been a "bumper harvest year" for sports brands, but the days of 2012 are not so good.

In August, the six major sports brands in China were

Anta, XTEP, 31st degree, PEAK and China have released the first half of 2012, which confirms the whole industry's downturn again.

"Excuse me, please.

How much discount do you have? "Xiao Li took a 79 yuan 360 degree cotton suit and thought it was the wrong price because" fabric and workmanship were good, and it was quite thick, which was more than the zoo (Beijing famous).

The wholesale market is cheap, "he said.

"Only the original price is zero, and I don't know how much it is."

The salesperson was helpless.

The sports brand area of the mall is full of "summer wear 29 yuan" and "Sports".

"69 yuan" promotional advertising, shelves full of goods, popularity is still not strong.

Many consumers find that this year, the discount of sports brand is almost unprecedented, and the discount is almost normal.

"Basically, all brands will be listed thirty percent off from new products and 66% off or even lower in discount stores."

Xiao Li told reporters.

And Adidas used to have very few one hundred or two hundred yuan price goods, now many can be selected; domestic two or three line brand often more than 100 yuan can buy a body.

"Students joked that it is now buying Lining and Adidas at the price of Lining, buying Lining at Anta's price, and buying PEAK, XTEP, and 361 degrees at the price of goods stalls."

With such a large discount, it is easy to see that the pressure of brand inventory is enormous.

According to the figures published in the Chinese newspaper, the stock cycle and receivables cycle of the 6 major sports brands all increased compared with the same period last year, of which 4 of the stock cycle has risen to 3 months, which has never been seen in the past.

All brands are reducing orders, closing stores and increasing sales promotion, but this will inevitably lead to a decline in overall revenue and profit margins.

Bad performance has also greatly reduced the share prices of various sports brands.

Less than half a year, Anta, Lining, 31st degree and China trend share prices were all cut short, XTEP and PEAK also fell by more than 40%, and the whole sector has lost all its share in the whole year.

It is not only local brands that worry about inventory, but also the Chinese market leader, Nike, an international sports giant.

Nike's newly released fourth quarter report shows that as of May 31, 2012, the total sales revenue of the Greater China region as Nike's second largest market was $667 million, down 3.89% compared to the third quarter.

But the size of inventories has increased significantly. By the end of May 2012, inventories were up to US $3 billion 350 million, an increase of more than 23% compared with us $2 billion 720 million in the same period last year.

BELLE international and Baosheng international are the main distributors of Nike and Adidas in Greater China. In the 2012 annual report, which has just been released, it is mentioned that the inventory pressure of sports category is very large, and there is an upward trend.

Another international sports giant Adidas has a slightly better life.

In the first half of this year, Adidas's sales in Greater China amounted to 732 million euros, up 19% over the same period last year.

The company's top executives said that this has a lot to do with the company's initial efforts to digest inventory after the end of the 2008 Olympic Games.

For fast fading brands, once stocks are high, the situation is grim.

There are still no signs that stocks of brands have bottomed out. It is estimated that the inventory will be long in the second half of this year.

"In the first half of 2012, the growth rate of China's sporting goods industry has slowed down to a single digit level, and the pressure of retail end to inventory is grim, which makes the industry more competitive."

Jin Zhenjun, executive vice president of Li Ning Co, told reporters that "the whole Chinese sporting goods industry is facing more severe competition. The pformation of the industry itself and the pformation of competition pattern are inevitable."

Jin Zhenjun believes that the main problem faced by domestic sports brands in the short term is due to domestic

The wholesale mode of products generally leads to excessive development, excessive channel inventory and rising costs.

The reporter understands that at present, domestic clothing enterprises generally use the wholesale distribution mode of "brand dealers wholesalers (agents) retailers" in the sales channels. This mode is slow and inaccurate in response to market supply and demand, and often causes agents to order more goods for goods to break, and brands also store more commodities for replenishment, which will form a "false appearance" of demand being magnified.

In the past, the market was in a period of rapid growth. This problem is not obvious. But when the industry is approaching winter, the pressure of inventory will suddenly become very sharp, and will become bigger and bigger like snowballs.

And ZARA, UNIQLO and other fast fashion brands are directly from the brand to the retail terminal, with high efficiency, low cost, high flexibility, and it is not easy to form a backlog of inventory.

Jin Zhenjun disclosed that Li Ning Co has already started management pformation and adjustment from wholesale mode to retail mode.

"We are trying to" direct delivery to store "mode, and hope to achieve direct replenishment within the next 6~12 months.

Jin Zhenjun said, "it seems that all decisions were made by dealers.

In fact, they have different purchasing power. We will recommend what products they should have in the store according to market judgement, sales trend and store situation. This restructuring is in progress, and this new supply chain mode is more flexible.

Jin Zhenjun said.

Just outside Nike, Lining and other counters outside the outdoor sports brand area, most products can only play ten percent off, and the season style has only a minimum of 30 percent off discount.

And the price tag is generally more than 1000 yuan of assault clothing and mountaineering shoes, salesperson tells a reporter: "sell very well."

In fact, the decline of domestic sports brand has appeared since 2011, and the overall recession of this industry has not dispersed with the arrival of the 2012 Olympic Games.

However, this cold winter did not seem to affect the high-end market. Columbia, OZARK, Northface and other high-end outdoor sports brands grew more than 30% in the Chinese market in 2011.

China's sporting goods industry has been developing for 20 years, but almost all of them are golden and "big bull market". The whole industry seems to have got used to the two digit high growth every year.

Especially after the successful Olympic bid in Beijing, the sporting goods market in China showed a blowout trend. At present, there are as many as 20 major sports brands, which is very different from other regional markets in the market structure of only three to four major sports brands.

The rapid expansion of the market has also pushed the competition of the whole industry to the extreme.

However, with the slowdown in the overall market demand, the good days of "everywhere are gold" are no longer, and the problem of being covered up in rapid development is gradually exposed.

Therefore, the industry generally expects that after this round of adjustment, it may leave only 5 to 6 local sports brands in the market.

In the process of rapid urbanization in China, nearly 1%~2% of townships and townships pfer to cities every year.

With the increase of disposable income, the enthusiasm of participating sports and the improvement of professional level, the purchasing power of Chinese consumers is gradually increasing.

The purchase of products will gradually shift to the relatively high-end brands, or pay more attention to product design, technology content or function pfer.

Therefore, in the long run, this will benefit more enterprises with brand strength and product quality.

Jin Zhenjun said.