Domestic Outdoor Product Sales Have Maintained An Increase Of More Than Two Digits.

The sports industry is hard to do.

Originally thought that foreign investment giants

Adidas and so on can "silt without staining". Until the announcement of the earnings report, it is found that no one can escape from the slump in the Chinese market.

In China, Nike is used to promoting the brand and keeping silent about "finance".

But as a listed company, the earnings report must be disclosed: the gross profit margin has fallen for 7 consecutive quarters - not at all.

It is certainly not just a single company's gross margin that will weaken the market, but also in a large number of China.

After falling into a predicament, the whole industry seems unwilling to see the "mire" of the leading company caught in the quagmire of recession.

Nike's foreign media said that the order volume in the Chinese market is decreasing.

This is a news that adds insult to injury.

Who is in heaven? Who is going to land?

In November 8th, Adidas will announce its performance in the first 9 months of 2012, when the performance of Nike and Adidas will be more obvious.

Without any accident, Adidas's performance may be better.

According to the data of Adidas in the first half of 2012, sales in the Greater China region in the first half of 2012 increased by 19% over the same period last year.

This is due to the new "2015 way" strategy.

As a tactical tactic to expand the low line city, Adidas has laid a good foundation in China.

At that time, Mr. Gao Jiali, managing director of Adidas group Greater China (ColinCurrie), said to "Oriental week" theweek: "our performance in the first half of this year is excellent and will continue to maintain healthy and sustainable growth in Greater China.

Our order will continue to maintain a two digit growth. At the same time, compared with our competitors, we can maintain relatively healthy inventory, so I am confident of the sales performance in the second half of the year.

In 2011, Adidas has completed the goal of opening 1000 stores in small and medium-sized cities, and by the end of 2012, the company will open 500~600 stores in the lower tier cities.

Adidas desperately sinks down the channel to ensure that it does not fall in China for the second time.

Gambling in 2008

The crisis brought by the Olympic Games has left the company unforgettable, and Adidas, who is unable to get rid of the pressure of high inventory pressure, will not easily fall down again in the same place.

Nike, a colleague, is also aware of the danger of inventory. However, the sluggish Chinese market has made it dangerous for the company to join the "China can not sell the club".

Data show that until May this year, Nike's stock grew by 23.39%, rising from $2 billion 715 million to $3 billion 350 million.

Nike's main distributor in China, BELLE international and Baosheng international, has also released heavy data in the China Daily: the Baosheng international interim report shows that its stock has risen to $554 million, up 37.16% over the same period last year.

BELLE International said that the overall inventory level was high in the first half of this year, and the discount rate increased from the same period last year, and the gross margin space was squeezed.

In fact, in the fourth quarter of fiscal year 2012, the sales revenue of Nike China has been on the decline. The total sales revenue of Nike in Greater China is US $667 million, which is 3.89% lower than that in the third quarter.

Some investment banks estimate that the Chinese market has contributed 30% of Nike's operating profit.

For the two major international brands, the key to self-help in the future seems to be in China's low line market.

In the new expansion plan of Adidas, small and medium-sized cities in the West and northwest will continue to be the main direction of the company.

Of the 500~600 planned stores, 300~350 will be opened in small cities, and the remaining stores will be concentrated in two or three cities.

In these areas, Adidas Neo and sports performance series will become the main brand.

The reason is simple: the price of the two brands is relatively low, which matches the purchasing power of consumers.

"Place the right commodities in suitable areas and channels."

This is what Adidas is trying to do.

Gao Jiali said that in two or three or even four or five line cities, Adidas's stores are mainly dealers themselves.

He said that the growth of China's sports category will come from the low level cities.

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Where is the Chinese brand road?

When it comes to Chinese sporting goods companies, there are probably no more than 10 enterprises: Lining, Anta, PEAK, 361 degree, XTEP...

But none of these companies has escaped from the high storage quagmire.

Dongxing securities analyst Tan Ke said in the research report, the domestic sports apparel industry has entered the second half of the mature stage, the scale growth rate decline, high market concentration, high inventory is the biggest feature of the industry.

At the end of August 2012, the Li Ning Co held a performance presentation in Hongkong, explaining the financial situation in the first half of the fiscal year 2012.

Although the company has warned the market before, Li Ning Co executives said that the net profit attributable to shareholders of listed companies was 44 million yuan, a sharp decrease of 84.9% compared to the same period last year.

After this remark, public opinion was still in an uproar.

As for the declining performance of the company, Zhong Yiqi, chief financial officer of Li Ning Co, pointed out that "the overall performance of the sports industry has been affected by the overall economic environment, and the performance of China's sporting goods industry has slowed down.

However, in view of the current situation, the group has taken the initiative to reduce the delivery of dealers.

The company is still in deep stock difficulties, reflecting its performance more clearly than other companies.

In 2008, with the help of the Olympic Games in Beijing, Chinese sporting goods companies made an optimistic judgement on the situation. Until 2011, high inventory has become a big stone in the minds of all sporting goods companies.

According to the rough statistics of the company's earnings, last year, the stock of sports casual wear and formal clothing reached about 60000000000 yuan.

In the first half of this year, Fujian sports goods four big Anta, 361 degrees, PEAK, XTEP, in addition to XTEP's net profit maintained a slight increase of 0.3%, the other three have surrendered net profit decline.

The vigorous marketing of Olympic Games has not brought enough benefits to enterprises.

Anta's executive director and chief operating officer, Lai Shi Hsien, analyzed that discounting vicious competition and rising operating costs were the main reasons for the decrease in profits.

When talking about the current situation of Chinese market, Nike and Adidas executives said to "Oriental week" theweek, "we know that Chinese sporting goods companies have encountered problems, and this problem is industrial."

In the face of industry mire, competition has already become hot.

Jin Zhenjun, executive vice president of Li Ning Co, announced that "in the first half of the year, the company has closed 1200 stores."

A Li Ning Co close to theweek said that the closing of the store is not contradictory to the company's strategic direction to increase the retail sales share, because the store is a low efficiency store, that is, multi brand mixed storefront.

"This kind of storefront can not provide enough impetus to the sales of Lining brand, so the company decided to close it."

The source pointed out.

But the difficulties are real in front of us, and the industry competition is heading for the white hot stage of life and death.

In the retail stores of major sports companies, eyeful is full of discounts, and terminal price competition is extremely fierce.

In addition, the order situation is not optimistic. Taking XTEP as an example, the order volume for the first quarter of 2013, which was held in July this year, dropped by about 15%~20% compared with the same period last year.

In this regard, a number of sports companies including Anta and PEAK have chosen to reduce the wholesale discount (deduction) to boost the confidence of dealers.

The 361 degree response said, "since December 2010, the autumn order in 2011 will begin. The company's" deduction "from wholesalers will be adjusted from 60% to 60%, and the 2012 spring / summer order will be further adjusted to 58% in July 2011.

Nevertheless, companies are still unable to prevent the high inventory from being dragged down by performance.

Outdoor products sneak attack?

In fact, outdoor sporting goods companies are also sneak attackers.

In 2000, the total retail sales of China's outdoor industry amounted to 60 million yuan. By 2011, the total retail sales of China's outdoor industry reached 11 billion yuan, and the compound growth rate reached 61% from 2000.

The domestic market is a special hot spot.

US consumer data released recently showed that the number of outdoor products in the US dropped by 10% in August compared with the same period last year.

However, the domestic situation is just the opposite.

CAMEL camel, a family member, said publicly to the media that "in August this year, the company's domestic orders for outdoor products increased by 20%, because the whole domestic outdoor product sales maintained an increase of more than two digits."

Zhong Jingwei, general manager of TheNorthFace., China general manager of Wei Fu Group, said to "Oriental week" theweek, "the scale of China's outdoor products market has much room for growth compared with mature countries, and has great potential."

For the plight of mass sporting goods companies, he said, "after many years of rapid growth, it is not so much that sports companies in China have had trouble growing up".

Those not good looking earnings are the alarm bell for the market. It's time to calm down and seriously reflect on what the Chinese consumers really need.