The Sporting Goods Industry Has Adjusted Its Performance To Defend Counterattack.

As of August 24th, local sports brands listed in Hongkong

Anta, XTEP, 361 degrees, PEAK, China trends, flying grams, Meck and so on all issued the semi annual report in 2012. In addition to a small increase in revenue performance, there are generally signs of decline. Correspondingly, high inventory prices continue to plague major brands.

Insiders predict that this round of adjustment will continue until the first half of next year.

Combined with the annual reports of the major brands, it can be found that the "Wan shop era" which was very loud two years ago did not arrive. The number of main brand stores declined instead of returning to the word "seven".

According to the analysis of the industry, channel adjustment has become one of the key tasks of the major brands in the first half of the year. On the one hand, it is to clean up inventory, on the other hand, to integrate low efficiency stores and begin to pay more attention to the construction of e-commerce channels; some brands' announcements show that after four quarters of adjustment, orders data in the first quarter of 2013 have shown signs of rising and falling, and are expected to achieve quick returns in market terminals.

General performance

In August 22nd, Lining, the "one brother" in the last financial year, finally announced the semi annual report in 2012. The result was not too unexpected, but still attracted the attention of all circles: the income in the first half of the year was 3 billion 880 million yuan, a year-on-year decrease of 9.5%, and the net profit attributable to shareholders was 44 million yuan, a sharp decrease of 84.9% compared to the same period last year.

Coincidentally, as early as in August 10th, the Anta of half a year was published, and the first half of the year was 3 billion 930 million yuan, exceeding Lining's 50 million yuan, and this amount was just the same as Lining's performance in 2011.

However, Anta's "Ping Ping" Lining's performance is also declining, but the net profit attributable to shareholders is 769 million yuan, which is 18 times that of Lining. This is also confirmed after the announcement of the semi annual report.

Behind the two leading brands, they are 361 yuan, 2 billion 870 million yuan, net profit 644 million yuan, XTEP accounts for 2 billion 610 million yuan, net profit 467 million yuan, PEAK accounts for 1 billion 610 million yuan, net profit 240 million yuan, China's trend accounts for 832 million yuan, net profit 97 million yuan.

Compared with the same period in the first half of 2011, in addition to the 1.4% growth in XTEP's revenue, other brands had a "double slide" situation, all of which were attributed to the overall weakness of the Chinese consumer goods market.

Two other Quanzhou shoe companies listed on the Hong Kong stock market are also facing great trouble.

In the first half of the year, the company's revenue was 609 million yuan, a decrease of 14% from 712 million yuan in the same period last year, equivalent to the return to the first half of 2010, while the net profit increased by 37.5% to 76 million 440 thousand yuan. However, it was attributed to the one-year expenditure on the grant of options and the purchase of shares, and the decision to not send medium-term interest in the case of 9.4 cents per share.

The first half of Meck's revenue plunged from 404 million yuan in 2011 to 155 million yuan, net profit fell from 88 million yuan to 7 million 329 thousand yuan, its inventory reached 127 million yuan, bank lending was 183 million yuan, and the operating pressure of Liquidity Fund can be imagined.

Channel adjustment

According to the semi annual report, Lining opened 248 new stores in the first half of this year, and made a profit assessment for the shops, and made structural adjustments to close 1200 inefficient stores, which accounted for 15% of the shops.

By June 30th, the number of shops in Lining's regular stores, flagship stores, factory shops and discount stores was 7303, a net decrease of 952 compared with the end of last year, and 52 for dealers after 5 families were cut off.

It is worth noting that Lining's inventory situation has not improved in the first half of the year, and its average inventory turnover period has increased from 72 days to 95 days. However, the inventory in the first half of this year increased by only 6 million yuan compared with the end of 2011, and also showed the balance technology between the clear inventory and the new products.

Lining management believes that, in the face of accumulated inventory for several years, the inventory clearance is insufficient in the first half of the year, and plans to solve the problem at once. Therefore, the annual profit forecast is adjusted. At present, management is discussing whether or not it will buy back products from dealers.

By the end of June, Lining's clearance outlets had increased from 269 and 358 to 271 and 394, respectively.

According to public information, the Li Ning Co will focus on Solving Inventory and accounts receivable problems in the future, providing 25% off for terminal retailers and 51% off for clearing channels. In 2013, the distributor guidance policy was to reduce the wholesale discount rate, and the overall discount rate was expected to be less than 1 percentage points.

The same problem must be faced in the trend of China and Quanzhou sports brand. China's trend is "double plummeting" in revenue and net profit, and it has nothing to do with its output of more than ten billion repurchase stock and terminal force selling stock.

In terms of channel adjustment, Quanzhou sports brand also spare no efforts in cleaning up inventory.

Reporters learned from PEAK group that since last year, the distribution channels have been optimized to prepare for the future development of the sporting goods industry. For example, in the retail network, PEAK continues to offer larger retail outlets through distributors and retail outlets operators, and closes more smaller and less efficient retail outlets. At the same time, it encourages every retail outlets to open more retail outlets to enhance their market resilience. In the aspect of distributors, PEAK group will continue to increase the number of distributors in 2012 to enhance its competitiveness.

Data show that the number of main brand stores such as Lining, Anta, 361 degrees, XTEP, PEAK and so on, after some integration, have returned to the level of more than 7000.

"After running a horse enclosure, it is bound to return to reason. One of the most important reasons is the return of rational consumption."

Ye Shuangquan, a senior industry insider, believes that the development of the brand must be market-oriented. Under the environment of insufficient consumption power and oversupply of products, the inventory and expanding stores that have been brought about by blind expansion in the past few years have become the burden of the major brands. "Normally, the adjustment of the channel will continue to deepen, and the number of stores between 6000 and 7000 is more reasonable", which has already covered 80% of the country's market.

Single shop promotion

"Closing stores is not a goal. The key lies in counterattack after defense, and the ability to sell single stores after integration."

The weakness of the sporting goods industry has been showing signs of weakness last year. In the second half of last year, PEAK took the first step of the reform banner to enhance the flexibility of enterprises in terms of enhancing the international brand image, optimizing sales channels, guiding terminal sales, increasing its own capacity and improving product quality, so as to cope with the fatigue period in the next two to three years and strive for the first recovery.

Xu Zhihua, chief executive of PEAK, quoted the famous English poet Shelley in the press conference: "If winter comes, can spring be far behind?"

The establishment of terminal retail management center has become a seed that Xu Zhihua sowed during the winter.

In the first half of this year, PEAK set up terminal retail management center, integrated PEAK business school and other resources, shifted the focus of training to the upgrading of terminal operation level, and carried out scientific, acupuncture and sexual training in order to improve the distributor's marketing ability in the aspects of storefront standardization, image unification, scientific management and characteristic management.

Unified terminal management provides a basic guarantee for the effective operation of various distribution outlets.

"Upgrading and upgrading of stores must go out of the wrong way and take both hard work and hard work."

In an interview with reporters, Ye Shuangquan believed that at present, it is in a difficult situation of "declining number of outlets and declining sales of single stores", on the one hand, insufficient demand and poor management on the other hand. The core of the promotion of stores is to increase the output of single stores, which is the key to the sustainable development of channels.

Comparison part

There is no obvious difference between the "inter generational" sports brand stores or only the different areas. Lining has much to learn from this year's six generation shop.

After the London Olympic Games began this year, Lining sponsored five Chinese gold medals on the field, and a retail terminal pformation was launched outside the stadium. The main position was the sixth generation retail store, all deployed in the first-line markets of Beijing, Shanghai, Guangzhou and Shenzhen.

Based on the strategic concept of Lining's brand "returning to sports itself and focusing on Core Sports", every detail of interior decoration and props of the six generation stores is closely related to specific sports items.

According to the real picture of Lining's six generation shop, we can find that the door handle of the shop is designed as the shape of the gymnastics rings, and the rings on the side of the door are also hung with rings for displaying the top products. Compared to the monotonous white walls, the six generation stores use white, black and Li Ninghong and bamboo elements; the wall's relief and heroic walls show not only the spirit of sports, but also the perfect combination of fashion and Oriental elements.

importance

The cooperation between a local brand and a local e-commerce platform is continuing to develop into the deep water area. XTEP has become a model of "first try".

Last November 15th, Tao shoes net jointly launched XTEP's "step by step heart" Han Geng shoes. The original series of limited edition had only one style, but the sales volume of single product quickly exceeded 4 million yuan! This data may not be very large in some large online shopping platforms, but it created a history of Quanzhou's local electricity supplier: backed by the advantages of shoes and clothing industrial base, local electric providers jointly brand "development" online shopping series products to achieve an innovation in the operation of e-commerce.

Comprehensive analysis of the major brands semi annual report, it is not difficult to find a common point: the importance of e-commerce channels, has begun to change from the positioning of the channel.

"I have been advocacy of a view: giving three yuan and sending a rose, the effect is definitely different."

Wang Dongzhu, chairman of Quanzhou Electronic Commerce Association and chairman of Tao shoe net, told reporters that price war can not be sustained. Value marketing is the future. E-commerce should become an important channel for brand building.

Wang Dongzhu believes that sports brands should pay enough attention to e-commerce in channel adjustment.

In the traditional view and practical operation, there has been a positioning of the electricity supplier channel as "clear inventory", as a way to sell the stock and get cash for the brand: the price of some local brand stores is close to the international brand, and only two figures are sold online.

"Inventory is temporary, so long as a miscarriage of justice or improper operation occurs, it can be digested through several big activities."

Wang Dongzhu told reporters that two years of singles day, Christmas, Valentine's day, April Fool's day and so on have confirmed this point. The combination of brand and star resources has developed a series of exclusive e-commerce providers, so it is not impossible to "bid" to enhance the brand. For example, the products of "step by step" are sold to more than 300 yuan, and the second season is also very popular.

"With the rising tide of online shopping in mainland China, we have cooperated with several leading online shopping platforms such as Taobao and pat, and established our own official website."

This is what XTEP said in the semi annual report on "channel expansion", but this is not XTEP's exclusive. Anta, for example, has made a special section in the semi annual report, "Anta brand in e-commerce and overseas markets", claiming that it will continue to optimize the existing e-commerce retail network and increase the exposure of some popular e-commerce websites.