A New Marketing Strategy For Sports Brands, Shops, Supermarkets And Stores

According to the latest report released by PEAK sports, a well-known sporting goods company, as of the end of September this year, PEAK's authorized retail outlets in China decreased by 1067 compared with the end of last year.

Corresponding to the closing shop is PEAK's declining orders. The total order volume of PEAK group in the second quarter of next year will drop by more than 20% compared with the same quarter this year.

The magnitude of the class order decreased.

The amount of orders is greatly reduced, and the average wholesale price of products is zero growth.

Not only did PEAK's stores shrink dramatically,

A large number of retail outlets were also closed.

In the first half of this year, Lining group made a structural adjustment to the shops on the basis of the newly opened 248 stores, shutting down 1200 low benefit stores, and closing the store up to 15%.

By the end of June, the number of shops in Lining's regular stores, flagship stores, factory stores and discount stores had decreased by 952 compared with the end of last year.

In addition, in the first half of the year, the total number of Kappa stores in China decreased by 569 compared with 18%.

In this regard, insiders pointed out that the current situation of some sports brands is not optimistic.

A large number of retail outlets closed in China, and inventories remain unchanged. This may continue for a longer time.

Zhang Qing, a sports brand expert, believes that the structural contradictions caused by the growth of the industry over the past ten years have led to the present situation.

Zhang Qing: inventory is actually just a representation, the reduction of enterprise orders.

The deeper reason for the increase is the rapid growth of the whole industry over the past ten years and the accumulated structural contradictions.

Now it's time for companies to make up classes.

A large number of sports brands shutting down retail stores are not just the behavior of an enterprise.

Zhang Qing believes that this also reflects to a certain extent that the current business situation of sports enterprises has encountered a bottleneck of growth.

Zhang Qing: actually, including international brand Nike's orders in China are also declining, and stocks are also increasing, not just local brands.

The reason for the decline of Nike's orders and the decline of local brands are common reasons.

Now, with the development of e-commerce, including ZARA, UNIQLO and other fast fashion brands, it has brought more choices to consumers.

Moreover, sports haven't become a universal lifestyle in China. The demand for professional sporting goods is often replaced by leisure products. With the development of e-commerce, many low price products satisfy people's habits and demand for online shopping.

In this way, excessive pursuit of growth and neglect of internal structural adjustment will eventually lead to the same situation for local brands, including Nike products.

A senior clothing industry official said that sports brands were also related to shops.

But compared with this time, it used to be the initiative to close the shop, but now it is unable to sustain the passive hemostasis.

What is even more frightening is that the current passive contraction of stores is far from over. The crisis of sports brand has not yet bottomed out and is continuing.

Zhang Qing believes that many sports brands are being optimized and their future development is not so bad.

Zhang Qing: the current measures to optimize the channel of the brand, closed are some inefficient shops, evaluation efficiency, unit area output ratio is relatively low.

Or the overpriced pavement is not cost-effective, and there are small shops and distributors who are not competitive enough.

This is actually optimizing. In the long run, the consumption power of Chinese consumers is gradually improving. The process of urbanization is still going on. The influence of sports on people's lives is gradually deepening, and there is still room for growth in the long run.

However, in the past, extensive business growth was too fast, too late, and no need to optimize the plan, including the professionalism of its own management capabilities, which could maintain growth without having to do too much work.

Now the competition is in front of us, too extensive to bring the backlog of inventory and other drawbacks appear, it is precisely the survival of the fittest.

Good companies have the opportunity to become bigger and stronger. The poor enterprises are eliminated, and the concentration of the whole brand is improved.

In fact, the industry can not accommodate so many brands, there must be elimination.

At the same time, Zhang Qing believes that closing shop tide is an optimization way, but such an optimization is not enough to resolve the current high inventory pressure.

Zhang Qing: this can not solve the export problem of inventory.

This also requires some new measures, such as the development of factory stores, the development of group buying market, the development of online shopping market, and the campus shop.

Of course, it only digested the existing stock. In the long run, there are more new orders every year. We should also consider our brand positioning, including the improvement of the efficiency of value chain management.

In the closed stores, with PEAK as an example, the proportion of outlets in the two or three line cities is almost 90%.

Some analysts pointed out that the two or three line city has been the focus of PEAK group's marketing in recent years, which means that in the face of the sinks of many brands of Chinese and foreign brands, the two or three line market crisis, which has been regarded as the brand advantage of local sports, has been aggravated.

Do you think this analysis is reasonable?

Zhang Qing: it should be said that competition is increasing. International brands, including sports, leisure and fashion, are all in the first tier cities. Now their channels are sinking to the second tier.

For example, when Lining is making a short line, the idea put forward is worth learning from the industry. To enhance the brand value, we must entertain consumers from the core competitiveness.

The marketing ideas of local brands should be adjusted. We can not wait until things happen and adjust passively.

Instead, we should take the initiative to boldly dig the value of the core of the canal, including the increase in self run shops, the perfection of the retail information system, and the perfection of the terminal consumer experience, which are closer to consumers and more quickly.