The Era Of Sports Brand Competition Is Temporarily Closed.

At the beginning of this month,

The store in Cameron Road, Tsim Sha Tsui, Hongkong, is also the only branch of Lining in Hongkong.

When it opened in 2009, Lining said that Hongkong stores were mainly used for product testing, laying the groundwork for brand internationalization.

Zhang Zhiyong, who was a Li Ning Co CEO, has also planned that by 2018, more than 20% of Lining's income will come from overseas markets.

Therefore, closing the store in Hongkong means to some extent that Lining has temporarily abandoned the Hongkong market.

In this regard, Lining stressed to reporters that Li Ning Co will take active measures in the past six months, such as the "three focus" strategy to improve the company's situation.

Lining's so-called "Three Focuses" strategy refers to focusing on the core brand Lining, focusing on core businesses and focusing on the mainland market, and focusing on the development of basketball and running markets.

This adjustment will inevitably involve product line adjustment, market layout adjustment, business scope adjustment and so on. For example, we need to clean up the stock of the original products, and close some stores, so that we can clean up the inventory before we can light up in the light of the new strategy.

The premise of all this is "focus on the development of the mainland market".

Data show that in 2010, the proportion of Li Ning Co's overseas revenue in total revenue was 1.4%, and by 2011, the proportion was about 1.9%, and its external revenue share was still smaller. Therefore, losing some markets has little impact on the overall business of the group.

But the key is that CEO, a sports consultancy, believes that it will still damage the international reputation of local brands.

However, in the case of hindered business development in the mainland, internationalization is not preferred.

What Lining calls "focusing on the mainland business" is not easy.

The big economic environment is not yet clear, and the competition in the industry is fierce.

There is a pcendence of Anta, and Nike and Adidas are pressing ahead. The market space left to Lining does not seem clear.

This embarrassing situation can also be seen from the earnings data.

In the first half of this year, Lining belonged to shareholders of listed companies.

It was 44 million yuan, down 84.9% compared with the same period last year.

Gross profit margin decreased by 3.1 percentage points over the same period in 2011.

The fourth quarter of 2012, which just ended, has also seen a significant decrease in orders.

In terms of clothing, the amount of orders has fallen by more than 20%.

At the same time, Lining's inventory in the first half of this year has not improved, and its average inventory turnover period has risen to 95 days.

Closing stores is not a sudden move.

The total number of shops in Lining has been decreasing year by year.

In the first half of this year, Lining opened 248 new stores, made a profit assessment for the shops, and made structural adjustments, shutting down 1200 inefficient stores, which accounted for 15% of the shops.

As of June 30th, the number of shops in Lining's regular stores, flagship stores, factory stores and discount stores was 7303, a net decrease of 952 from the end of last year.

But Lining's self adjustment is quite right in many industry circles.

In fact, compared with other brands in the mainland, Lining's problem was exposed earlier and earlier.

In 2011, Lining announced that he had thrown 300 million yuan to carry out inventory repurchase. At that time, Anta, XTEP and 31st degree all claimed that there were no related problems.

A sports veteran told reporters that in addition to adjusting the layout of the market, sports brand shop is also related to the high rent of gold business circle.

For example, media reports reported that the Hongkong Lining store was settled in October 2009, when the monthly rent was HK $450 thousand. Last year the lease expired and the rent increased to more than HK $700 thousand.

Similarly, the international brand Nike stores in the 5 storey building of Nanjing West Road store in Shanghai now have only one to two floors in operation, and the other floors are closed.

In recent years, the rents of large cities' gold trading areas have been quite large, while the profit margins of sports brands have been decreasing, and the rate of profit rising has not kept pace with the rents.

These people said.

Regardless of the considerations, the temporary closure of sports brand horse racing enclosure has become a popular consensus among the industry.