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    Local Sports Brands Enter Deep Adjustment Period

    2012/11/12 10:18:00 27

    Local Sports BrandsLiningNikeAnta

    In China

    Spin

    clothing

    Under the background of the overall downturn of the industry, the domestic sports brand is also facing enormous development pressure.

    Recently, PEAK, Lining, Anta and other enterprises have reported the news of reduced profits, and many brand stores have been reduced.

    Experts believe that the domestic sports brand has entered the stage of deep adjustment, and the whole industry will usher in a major adjustment.


    --- domestic sports brands encounter profit warning stocks increase


    In many cities and towns in China, people can see everywhere in commercial and pedestrian streets.

    Lining

    PEAK, Anta and other sports brand stores.

    But with the intensification of brand competition, this kind of business mode that depends on crazy shops and price changes will be difficult to sustain.


    Domestic sports and clothing enterprises

    Peak

    A report released by sports shows that as of September 30, 2012, its authorized retail outlets in China were 6739, compared with 1067 at the end of 2011.

    The order of PEAK sports is also not optimistic. The total order volume in the second quarter of 2013 was 20% to 30% lower than that in 2012.


    PEAK sports development surplus police showed that the net profit in the first half year and the whole year will be significantly reduced compared with the same period in 2011, attributable to the widespread inventory adjustment and weak economic conditions in 2012, which has a negative impact on the demand for sports goods in the group.


    In this regard, PEAK CEO Xu Zhihua said that the closure of the store seems to be very sensitive, but from the industry perspective, the closure of stores in essence, listing a process of survival of the fittest.


    According to other statistics, many domestic sports apparel enterprises also showed signs of decreasing retail outlets and declining profitability.

    In the first half of 2012, Lining Group continued to push ahead with the change of sales channels. Based on the newly opened 248 stores, the company made a profit assessment, adjusted its operating structure, and closed down 1200 inefficient stores, which accounted for 15% of the shops.

    As of June 30th, the number of shops in Lining's regular stores, flagship stores, factory stores and discount stores was 7303, which was 952 less than that at the end of 2011.

    Since 2012, the total number of Anta sports stores has decreased by 110.


    Reporters recently interviewed in Xidan, Beijing and other business circles in Xidan, and found that many of the domestic sports goods gathered in the shopping malls, most of the dealers have launched a price promotion advertising.

    However, fashion brands and international sports are crowded with people.

    Brand clothing

    Compared with the crowded stores, the store of sports brand clothing stores is relatively deserted.

    Some businessmen told reporters that due to poor management, they plan to change their stores to sales and leisure.

    Clothes & Accessories


    Xiong Xiaokun, a light industry researcher at CIC consultant, told reporters that the development mode of domestic sports brand "horse race" and "quantity win" has been difficult to continue. The increase of labor cost, rent cost and the serious homogenization of products make the marginal benefit of intensive store expansion smaller or even a loss.


    - Crazy expansion leads to malnutrition.


    In view of the fact that many domestic sports brands have closed down and lowered their development goals, analysts believe that the development of China's sports brands in the past few years has gone crazy, and the development of wild style has led to many hidden problems.


    From China

    Sports brand

    The development trajectory shows that in the past few years, the domestic sports brand has gone through an explosive growth process.

    The 2008 Beijing Olympic Games brought unprecedented opportunities for the development of Chinese sports brands. With the enthusiasm of consumers aroused, commercial sponsorship, advertising marketing and the listing of Hong Kong stocks, many sports brands won sufficient capital and business development momentum.


    In this process, many sports brands open a large number of stores in the two or three line cities, on the one hand, they provide "achievement" for the listing of Hong Kong stocks. At the same time, they occupy the two or three line city market through this way and take the road of "rural encircling the cities".

    In 2009, Lining's income exceeded that of sporting goods giant Adidas, ranking second in the Chinese sporting goods market. The gap between Nike and the industry leader Nike was also narrowing. Other sports brands also sprung up in the commercial districts of various cities.


    "Due to the lack of attention to the development of brand characteristics in the process of rapid expansion, the homogenization competition is serious. Now too many sports brand stores are crowded together, making the competition between them become increasingly fierce. There are also many inefficient stores in these stores, and the management and management benefits are not good.

    "Network marketing expert Jiang Yunlu said.


    According to the 2012 semi annual report of Lining, Anta, XTEP, 31st degree, PEAK and trend six clothing brands, the total stock of the 6 brands reached 3 billion 721 million yuan, which increased compared with the total inventory of 3 billion 699 million yuan at the end of 2011.

    Although the stocks of the 6 major brands declined, the stock of PEAK continued to rise. Compared with the end of 2011, the stock in the first half of the year has risen to 529 million yuan, or 25.65%.


    Jiang Yunlu believes that sports brand enterprises are facing not only the homogenization competition pressure of the same industry, but also the market of casual wear.

    As more and more fashion apparel brands emerge, consumers have more choices.

    In fact, before the emergence of a large number of Chinese casual wear brands, the domestic sports brand clothing has partly assumed the functions of some casual clothes. Now casual clothes are gradually decomposing the sports brand clothing market, and with the development of e-commerce, many low price products meet the consumers' demand for online shopping.

    {page_break}


    - deep adjustment is facing pformation pressure.


    Some experts pointed out that due to the concentration of large number of domestic sports brands in a short period of time, the listed companies have already seen many times. With the increasing competition, the domestic sports brands will enter a period of deep adjustment of the industry.


    Experts believe that in order to change the current situation, enterprises should first clear their own positioning, pay attention to adjust their product mix, enhance product characteristics.

    Xiong Xiaokun said: at present, the domestic sports brands are facing the dual pressures of two domestic and international markets. On the one hand, many domestic sports brands are "competing with each other" and have a keen competition. On the other hand, international sports brands such as Nike and Adi are making use of the low price strategy and adopting the way of "city encircling the countryside" to enter the two or three line market, which creates tremendous pressure on the domestic sports brand.

    Therefore, the domestic brands urgently need to identify the brand positioning, clarify the development ideas, adjust the product structure, and provide personalized products to start their own brand.


    Secondly, enterprises need to change the rugged development mode and enhance their profitability.

    Some experts have pointed out that the large-scale expansion of the domestic sports brands represented by Lining is facing a difficult situation. The sports brand should change its strategy of operation and development.

    We should abandon the current rugged development mode of intensive store opening and quantity winning, subdivide product lines, enhance the profitability of single stores through channels, marketing, services and other measures so as to make them bigger and stronger.

    "This is a process of pformation. It is also a process of making up lessons and enhancing competitiveness. It may take a heavy price.

    "Xiong Xiaokun said.


    Third, we should combine current e-commerce features to improve marketing methods.

    Jiang Yunlu suggested that in the rapid development of Internet and new media, enterprises should pay attention to the effective utilization of electronic commerce and integrate operation with multiple channels.

    E-commerce can reduce investment in the marketing chain, reduce the final delivery cost of clothing, and thus form the advantage of price.

    In dealing with the relationship between the electricity supplier and the entity store, Jiang Yunlu thinks that the fast and flexible way of e-commerce can be used to sell the off-season clothing at low prices, and form differentiated marketing with the physical stores, which is not only convenient for solving the inventory problems, but also complementing the development of the two.

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