Domestic Sports Brand Enterprises Are Facing Pains Of Development

This year, it is obvious that what is "deep water" is deeply felt.

PEAK sports released a report yesterday, as of September 30, 2012, PEAK sports authorized retail outlets in China were 6739, compared with the end of 2011, a net decrease of 1067.

Worse still, the group's next year's order results are very frustrating.

The announcement shows that the total order volume of the group in the second quarter of 2013 (calculated at wholesale price) fell sharply from 20% to 30% in the same quarter of 2012.

Although PEAK said that the retail outlets were reduced because the group was carrying out the optimization of retail outlets, but the unavoidable reality, the domestic sports brand enterprises are facing great difficulties and challenges at the moment.

The biggest sports brand in China Li Ning Co has been bad news since the second half of this year.

In July 4th, Lining group's authorized dealer in Spain declared bankruptcy.

The company's semi annual report shows that the company's net profit in the first half of the year dropped by 85% to 44 million yuan, and in September 12th, Lining closed its only branch in Hongkong.

At the same time, Li Ning Co also issued an early warning of annual loss.

In order to save costs, Lining has closed 1200 stores in the first half of the year.

In the first half of this year, the Kappa brand also closed 569 stores.

What's wrong with the domestic sports brand enterprises? Insiders pointed out that blind expansion is the main reason for the domestic sports brand enterprises' whining.

In recent years, both ready to be listed and listed companies are expanding their stores in a frenzied fashion. Due to the lack of differentiation between brands and the weakness of the whole market, the rapid expansion of new stores has led to almost all sports brand enterprises having high inventory difficulties.

Data show that the first half of this year, including Anta, 31st, XTEP, PEAK and other 42 domestic listed textile and garment enterprises total inventory of 48 billion 300 million yuan.

Only 4 of the inventories are below 100 million yuan.

Coupled with the rising prices of raw materials, rising labor costs and weak brand innovation capabilities, the domestic sports brand market is now exhausted.

It is obvious that after the first two years of the sports brand, the sports brand in China has come to think about how to make their brand positioning clear again and again.

In the past few years, when domestic sports brands just appeared, they were popular and popular with consumers because of their novelty, fashion, vibrant style and affordable prices. However, with the development of the market, the price of domestic sports brands has been unwittingly closed to the prices of international brands.

What's more, domestic sports products still have a big gap compared with international brands in terms of design, expansion, operation and many other aspects, and their brand popularity can not compare with international brands.

This state is equivalent to a person who wants to move forward, and his head has been stretched out, but his feet are still standing in situ, unwilling to move or do not know how to move.

"High quality can't keep up with the big brands abroad, and the low price is not suitable for Shanzhai small factories," an industry insider summed up the embarrassing situation faced by the domestic sports brand enterprises in a sentence.

The companies in it are clearly aware of the many problems they face. They have been trying to break through the current predicament. There are traditional discount promotions, and the use of online and offline widening sales channels. Some enterprises extend their tentacles to the two or three line to more remote markets.

However, these are just some ways to digest inventory. From the long-term development of enterprises, the domestic sports brand enterprises will eventually work hard on brand differentiation, and how to clear their products.

It is also a problem that domestic sports brand enterprises need to think about and solve.