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    Lining And Other Sports Brands Are Not Going Back To International Difficulties.

    2012/10/8 8:50:00 5

    Sports BrandInternationalizationDilemma

     

    According to statistics, in 2007 -2009, listed in China

    Sports goods

    The total number of new businesses is nearly two.

    At the same time, the sales volume did not reach the expected level, but the inventory pressure gradually increased.

    The reduction of annual orders and high inventory make domestic sports brands complain incessantly.


    Faced with the collective downturn of the six major sports brands in China, insiders pointed out that local sports brands are collectively passing through the "winter".

    Blind expansion, market share and lack of innovation are the main reasons for the serious decline in performance. In the next 2-3 years, these enterprises still can hardly usher in the "spring" of recovery.


    The cold spell is coming.


    A few days ago, the reporter in Beijing several big sports brand store found, Lining, 361, Anta, XTEP and so on are discounted sales, some sports brand discount strength reached 66% off, can be called unprecedented.


    It can be seen that the local sports brands are experiencing a "cold stream" collectively.

    High rent, high inventories and low economic environment have dragged down local businesses. Lining's net profit has dropped by 8 to 361, highlighting the management difficulties of local sports brands. Anta, 361 degree, PEAK and other brands failed to be satisfied in the first half of the year, and local sports brands lost collective language in the first half of the year.


    Data show that in the first half of the year, except for "XTEP international" revenue rose slightly, Anta fell 11.6% compared to the same period last year; 361 degrees year-on-year decline of 10%; PEAK reduced 28.5% compared to the same period; China's trend fell 29.4% compared with the same period last year, Lining net profit fell more than 8.


    In the specific situation, the net profit of the "one brother" Lining has fallen the most in the six major local sports brands, and its business downturn has continued to 2012.

    According to data from the first half of the financial report, Li Ning Co not only declined in both sales and net profit in the first half of the year, but also predicted that the annual revenue in 2012 would decline further.


    Although the company has always stressed that it is "active change", but in 2011, it has obviously become the turning point of Lining's performance. For many years, the continuously rising performance began to decline. It is worth noting that in the first half of this year, Lining has closed more than 900 branches, and its CEO has not yet found the right person to look for it.


    361 degrees of revenue and net profit are also down.

    With the division of business, the average selling price of footwear increased by 14.3% in the four major product lines of 361 degrees footwear, clothing, accessories and children's clothing, but sales decreased by 26%. The average selling price of clothing decreased by 24%, sales increased 8%, the average selling price of accessories decreased slightly, and sales fell sharply by 51%.


    PEAK's net profit fell by nearly 40% in the first half of this year.

    The company attributed the decline in performance to inventory adjustment in the sporting goods industry in the first half of 2012 and the weak economic conditions that had a negative impact on demand for sporting goods.


    Kappa, the main clothing retailer, reported 832 million yuan in the first half of the year, down 29.4% from 1 billion 179 million yuan in the same period last year.


    By contrast, XTEP outperformed its peers.

    When the performance of Lining, Anta and other companies declined and the macroeconomic environment was weak, XTEP significantly reduced the number of shops and cleaned up inventories. The company's net profit maintained a slight increase of 0.3%. In the first half of the year, the total revenue of the company increased by 1.4% to 2 billion 607 million yuan.


    Faced with this price sponsorship, the industry is not optimistic.

    Anta's 600 million yuan is almost a drop in the bucket, and its marketing efforts during the Olympic Games are also considered to be ineffective. Compared with sponsors such as BMW, the marketing effect is far away.


    There are cases of failure, and there are precedents for success.

    The audience who is familiar with basketball events may not be unfamiliar with the "PEAK" sports brand. They are more sympathetic to the brand connotation of PEAK's "fight to the end". This positioning basketball professional equipment enterprise will continue to strengthen its overseas strategy.


    It is understood that since 2005, PEAK launched the internationalization strategy, and the internationalization and specialization as the core concept of PEAK brand.

    And take a dedicated marketing strategy, focusing on basketball marketing and promotion.

    Through international professional sports events to establish good communication links with consumers, and inject more internationalization and specialization elements for brand connotation.


    For this reason, PEAK put the Chinese billboard in the NBA arena, and hired NBA star as the brand spokesperson.

    In addition to sponsoring basketball, road cycling, tennis and other competitions, PEAK has also made frequent efforts to cooperate with some sports teams abroad to provide sports equipment for PEAK, so as to continuously establish PEAK's international sports brand image.

    What's interesting is that many of them are wearing PEAK sports.

    Shoes and clothing

    The athletes and sports teams of the competition have made good achievements.


    As a result, PEAK's internationalization strategy has entered the field of vision.

    Through developing the marketing strategy of "making the brand first and then the market", PEAK has created the endorsement model for finding unique focus events, and has gone out of a different way in the process of internationalization.


    In recent years, PEAK has accelerated its internationalization strategy. At present, PEAK has more than 200 agency sales outlets all over the world, and the proportion of overseas sales has increased year by year. As of the first half of last year, PEAK's overseas sales account for 10% of total sales, and has registered trademarks in more than 160 countries and regions such as the United States.

    PEAK CEO Xu Zhihua claims that by 2015, PEAK's overseas sales will account for 50% of total sales, that is to say, equal sales with domestic sales.

    {page_break}


    In addition to PEAK, Lining, a veteran sports company in the domestic market, has begun to strengthen overseas markets through e-commerce channels. The first stop is the United States.

    In January 19th, Lining officially launched online sales in the United States, mainly selling women's sportswear and running shoes.

    Lining stressed that the move was only a trial run, and that the cost of investment was not high and the risk would not be too great.

    But then the negative news kept coming: the design center in Portland has lost half of its employees; the agreement with the US partner FootLockerInc. has been suspended, and the sales company established with the Spanish agent is also bankrupt.


    In 2012, Lining became the focus of media attention. In the face of the entry of investor teams, the exit of the former chief executive and the failed attempt of brand internationalization, Lining began to implement a series of streamlining and shrinking strategies, clearly indicating that China will pay more attention to the market in the future and close its cooperation platform in Europe.


    Thus, for China's sports brand, the road of internationalization is still long.


    Hard way to break through


    Over the past few years, China's local sports brand has been expanding too fast, and the franchisee has largely digested the stock instead of expanding orders and intensified competition with foreign sporting goods providers. This has become a major factor contributing to the general slowdown in the growth of local sports brand performance.

    The competition among domestic sports brands and the weak sense of local culture are also the main factors causing inventory backlog and single profit problems.


    Can local brands get out of difficulties in the short term?


    361 degree Zhu Chenye said that the annual growth rate of 20%-30% after the local sports brand returns to 2008 is unrealistic.

    From the start of the 2013 order situation, next year is still a difficult year for local sports brands.

    She believes that China's sporting goods industry will return to the track of rapid growth after 2014.


    "Domestic sports brand hopes that the Olympics will break the siege of ADI and Nike, and it will not be very realistic to move towards the international market."

    Some securities analysts believe that even if the local sports brands need to get out of the predicament, there is a priority.

    "For example, the trend of Lining and China will be better in the second and second quarters of next year, but the plight of other brands may just begin. There will be more competition and more competition for these brands to integrate and adjust.

    In this case, the prospects of Anta and PEAK will be better.


    Where is the way out for local sports brands?


    According to the insiders, under the background of the weak international and domestic market, the local sports brands should optimize and reorganize their resources, merge a batch of enterprises with strong strength and brand influence, and share less resources to occupy the market with strength.


    "Merger and reorganization is very good, but for Chinese people, it is not easy to achieve it."

    Hu Xingdou, an economics professor at Beijing Institute of Technology, said: "from a policy point of view, the government strictly controls the speculation of some immoral enterprises on the one hand, but also prevents the local brand enterprises from realizing the market self regulation mechanism. In order to grow and grow, the government should create a good legal environment for local brand enterprises, and a loose financing and fund-raising market environment is conducive to the growth of enterprises."


    "From the point of view of industry, local brands need to focus on local brand building if they want to break through."

    Hu Xingdou, for example, thinks that Lenovo, as a private enterprise, can be regarded as a powerful force in the international and domestic markets. This is due to their importance to brand building, technological research and development, top teams and accurate grasp of the market.

    The local sports brand enterprises must be at the height of international competition and look at and plan the development of enterprises. Although they start at the low end, they must be positioned at the high end.

    Only in this way can enterprises occupy market share.


    Some experts pointed out that after 10 years of rapid growth, China's sports brand has entered a mature stage of development. When the channel has reached a large base, it can only raise the gross profit margin through brand pull through brand break out, that is endogenous growth, which is the only way for enterprise development.

    And entering e-commerce is a good weapon for the traditional sports brand to break through the brand in the future.


    From the above situation, we can see that compared to the "golden ten years" of sports brand development in China before, the speed of domestic sporting goods has been greatly reduced in recent two years.

    The reason for this situation is closely related to the current agency distribution mode commonly used by domestic sports brand enterprises in the sales channels.

    Pei Liang, Secretary General of the China Chain Store Association, said that our country's current product distribution system is mixed up with distribution and concession, or even distribution, concession and direct operation. This mode is slow and inaccurate for market supply and demand, and is not suitable for the development of franchise chain, and has reached the stage of pformation. 3.

    {page_break}


    Compared with foreign brands, domestic brands are widely criticized for their extensive agency mode and huge distribution network, resulting in an increase in their stock ratio and a strong decline in brand reputation.

    Pei Liang believes that in order to achieve high efficiency and meticulous management mode, first of all, it is necessary to ensure that the headquarters and terminals are pparent, rather than there is a long chain mode between headquarters, regional and franchisees, so that if problems are found, it is too late to solve them.


    The international road of internationalization


    The winter of the industry has come, and every brand has begun to save itself.


    The internationalization of local sports brands is an important choice for enterprises to break through. Every attempt in this process, regardless of winning or losing, is a useful contribution and positive exploration of the local sports brand to the international success mode.


    After more than 20 years of rapid development, China's sports brands already have considerable strength in quantity.

    But in terms of details and brand image, there is still a big gap between local sports brands and international brands.

    It took sixty or seventy years for Adidas to have a prominent position. Nike also became the leader of the industry after nearly forty years.


    Nowadays, when the international sports brands such as Nike and Adidas begin to attach importance to the two or three tier domestic market and prepare to build it into the main market, the domestic sports brand that has entered the cold winter has not given up the ambition of internationalization.

    Expanding overseas markets and paying high prices will be a spokesperson for the stars and sponsoring the Olympic Games.


    The London Olympic Games is over. On the battlefield of the Olympic marketing, the Anta of China's sports brand is the most capital contributive.

    However, Anta's Olympic sponsorship is not new. Although Anta did not specifically announce the specific amount of sponsorship of the Olympic Games, the industry generally estimated that Anta's sponsorship of the Chinese Olympic Committee amounted to 600 million yuan.

    Plus outside the stadium.

    Marketing

    The total cost will exceed 1 billion 200 million yuan.


     

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