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    The Era Of Horse Race Enclosure Ends Sports Brand Closing Many Stores

    2012/11/8 9:18:00 27

    PEAKChongqingFatigue PeriodInventory Management

     

    Another sports brand store in Yangjiaping has been closed - within a month or so, this is the closing of second sports brand stores in the area.

    This is only a microcosm of the sports brand industry this year.


    Chongqing is also closed to sports stores.


    At three p.m. yesterday, the PEAK sports store in Yangjiaping Tuen Jie road has only left the "PEAK" four letters on the door indicating that it was the site of PEAK sports.

    Three workers are working together to dismantle the wide glass door of the store.

    "Surely PEAK will not be sold here, and it is not clear whether they want to do it elsewhere."

    A surnamed Lin who urged construction on the side told reporters that he had taken over the store from PEAK.


    Yesterday,

    Peak

    The head of Chongqing's general agent told reporters that in addition to the above PEAK sports stores, there were three undesirable outlets in Beibei and Nanping.


    But compared with PEAK's stores closed nationwide this year, Chongqing is only a drop in the bucket.

    PEAK sports announced in November 5th that as of September 30th this year, the number of retail outlets authorized by PEAK in China was 6739, a decrease of 1067 from 7803 in the end of 2011.


    Yesterday, reporters at the scene found that in Chongqing Yangjiaping pedestrian street Lining store has been closed.

    Li Ning Co replied that there was no exact statistics on store closures and inventory in Chongqing, but a number of sub distributors in Chongqing said sales fell sharply, and some fell by 30~40% compared with the same period last year.


    Industry insiders say that many sports brand stores have closed in the city under the influence of the big environment.


    Agents say business pressure is high.


    Why do we withdraw? "The cost of rent is too high and profits fall down. It is totally unbearable."

    Above PEAK

    Chongqing

    The head of the general agent said frankly, since the second half of last year, business has not started well. Basically, this year it is a loss making business. If we go into shopping malls, the brand will not take the lead, only to develop to the district and county.


    Yesterday, reporters visited the market also found that, including 361, XTEP and other sports brands are also playing a big promotional card.

    In the new century shopping mall, the new Nike's down jacket has also been promoted at twenty percent off, which is rare in previous years.


    PEAK sports CEO Xu Zhihua said in an interview with reporters that closing stores is the company's best layout.


    The end of horse race enclosure


    The reporter's official reports on several sports brands showed almost a decline.


    Anta sports also reduced 110 stores in half a year.

    The latest announcement of Puma, the world's most famous sports brand, shows that in the third quarter of 2012, the company's profit fell by 85.1% compared with the same period last year, and its operating profit shrank from 118 million 600 thousand euros to 19 million 600 thousand euros.


    "Closing the door is something unexpected."

    He Junfeng, chief planner of China Southern apparel brand alliance, told reporters that the rise in store rentals and human resources had made it difficult for sports brands to survive. At the same time, the homogenization of sports brands in China was serious, and the styles were basically following the trend, without personality, which was unfavourable to brand development.


    "The most important thing is that after 2008, the domestic sports brand is developing. In order to seize the market, all of them are expanding in a rough way, ignoring services and brand building."

    He Junfeng said, "only by changing the way of management and management and improving the soft power of service and product quality is the way out".


    The future will benefit from single store competition


    "As a matter of fact, as early as last year, we began to tackle the market changes. Through optimizing the channels, enhancing the efficiency of single store and increasing the investment in design and research, we can enhance the response speed and flexibility of the terminal to deal with the industry in the next two to three years.

    exhaustion phase

    And strive for the first recovery. "

    PEAK sports CEO Xu Zhihua said.

    PEAK's "seventh generation stores" have begun to pilot in some areas. It is estimated that by the end of 2013, nearly 1000 stores will be upgraded.


    In an interview with reporters, sang Wei Sheng, deputy general manager and clothing marketing management consultant of western apparel technology industry park, said that only by upgrading the brand value, store image and product quality can we meet the requirements of future competition.


    Lining online and offline contradictions intensified


    Reporters combed recently Li Ning Co's public information shows that Hongkong, Shandong and many other entities shop closed phenomenon.

    Li Ning Co responded to reporters that there are indeed some stores closed at the moment, which is the result of early channel adjustment and low efficiency stores.

    According to the semi annual report released by Li Ning Co, the shops in the first half of this year have made structural adjustments and closed 1200 inefficient stores.


    At the same time, Lining official mall also launched ultra-low discount to inventory.

    Recently, Lining, a county and city dealer, posted on the Internet the publication of "how the electricity supplier affects my business", saying that the low discount of online sales has affected the sales of physical stores, and the stores have changed from the 7 houses in the peak period to the last 1. This post has caused many dealers to post their posts, and some dealers have indicated that they can sell them online.


    In the industry view, Lining's pains and problems are not simple store adjustment can be solved.

    In October 19th, Guotai Junan pointed out in the research report that the recent investigation in Shenzhen by the agency showed that the inventory of Li Ning Co was serious, and the amount of inventory repurchase was still being negotiated with dealers, which would be more radical in the second half year.

    Inventory management


    Lining, deputy general manager of clothing science and Technology Industrial Park of Western top management, Sang Weisheng, who has met with many senior management of the west, told reporters that nowadays the sports brands in China are facing the cold winter. Every big business is trying to grab the market. If Lining does not change the employment and management mechanism, the result may be even worse at the end of the year.

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