Local Sports Shoes Brand Stores To Inventory "Broken Arm To Survive" To Rectify Deviation

At the end of August, Beijing was extremely hot, but the sports industry suffered a cold spell.

Up to now, Lining, Anta, PEAK and other local sports brands have announced the first half of 2012 Chinese newspapers.

Data show that their performance in the first half of this year is serious, and the whole industry is experiencing growth predicament.

In August 22, 2012, Li Ning Co announced that as of June 30, 2012, the group's revenue decreased by 9.5% to 3 billion 880 million yuan.

In addition, PEAK sports released interim results announcement, as of June 30th, equity holders should account for 240 million yuan profit, down 43.35% compared to the same period, turnover of 1 billion 610 million yuan, a decrease of 28.50% over the same period.

"Under the challenge of changing demand and rising costs, the Group expects China's sporting goods in the next three years.

There will be new changes in the pattern. "

Lining believes that in the long run, in the context of the pformation of China's economy from investment driven to consumption driven, the consumer goods industry of the group will still benefit, but at the same time, the competition of China's sporting goods industry is also increasing. The sports brands are also increasingly keen on the channels, sports resources and media resources, and consumers have put forward higher requirements for brand and product value.

On the afternoon of August 28th,

Our reporter saw that Lining, 361 degrees, Anta, XTEP and other Chinese sports brands were on sale at a discount sale ranging from half off to twenty percent off, but there were not many consumers patronized by the newspaper. The five floor of the Hua Tang shopping mall near Chaoyang Road, ten Li Bao, was reported.

In this regard, PEAK Sports Public Relations Deputy Director of an interview with our reporter said that the domestic sports brand performance in the first half of this year is not very good. Now the discount sales promotion is mainly for inventory, while Nike and Adidas have no discount in shopping malls, but they have a lower discount in factory stores.

Insiders who did not want to sign the name pointed out that Nike's sales in China in the first quarter of this year also dropped by 4%, and the second quarter, the third quarter and the future orders also showed a downward trend. And with the increase of inventory, Nike has indicated that it will reduce the discount and increase the layout of factory stores.

According to PEAK sports daily, as of the end of June, the number of PEAK sports outlets in China decreased by 747 to 7059 at the end of last year.

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

"Compared with Lining's number of stores, PEAK is not much."

The deputy director of PEAK sports relations told us this reporter.

According to our reporter, in the first half of 2012, Lining Group continued to promote changes in sales channels, made structural adjustments to shops, and closed 1200 inefficient stores.

One approach

People familiar with the company told us that Li Ning Co is the biggest sports brand in China. When it is hit by an industry, it is also affected most by the industry. This is the same as NOKIA in the mobile phone industry, which has the greatest impact on the adjustment period of the industry.

Lining is indeed the most closed shop in the whole industry. This is just a representation. It can not be said that Li Ning Co will not work.

In addition, in the first half of the year, the total number of Kappa brand stores in China decreased from 3119 at the end of the year to 2550 now, a decrease of 569, with a drop of 18.2%.

For local sports brands have closed shop to inventory behavior, Zhang Qing told this reporter's interview, closing stores to inventory is broken arm survival method, this is a correction of the past hurricane growth, many stores were inefficient stores, no money to lose money, as a listed company to performance, so crazy shop, as dealers are not good now, we have to close some inefficient stores, optimize channels to ensure efficient store sales.