Lining PEAK And Other Sports Brands Are Shutting Down The Store To Survive

On September 7th, the London Olympic Games that had just passed were not given to the mainland.

Bring miracles.

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,

The company 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 that there will be new changes in the competition pattern of China's sporting goods market in the next three years."

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, at the five floor of the halls shopping mall near the ten mile fort, Chaoyang Road, Beijing, our reporter saw that Chinese sports brands such as Lining, 361 degrees, Anta, XTEP and so on were all on sale, ranging from half off to twenty percent off, but not many consumers patronized.

In this regard,

Deputy director of sports relations told an interview with our reporter that the performance of domestic sports brands 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.

A person close to the Li Ning Co told our reporter that Li Ning Co is the largest sports brand in China. When it is hit by an industry, it is also the biggest influence on 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.