Sports Brand 3 Billion 700 Million Yuan High Inventory Difficult To Digest And Loss Caused By The Shop Tide

After a short period of excitement in the Olympic Games, the Chinese sportswear brand has to return to reality: the high inventory and shrinking orders made the domestic sportswear brand that had been expanding so much that it had to swallow its bitter fruit.

Reporters from a number of sports brand dealers were informed that recently, with Lining, Anta, PEAK as the representative of the domestic sportswear brand, continue to increase the intensity of discount sales, and a large number of closed stores, hoping to reduce the burden, let the enterprise through the cold winter.

"Not only domestic sports brands are desperately out of stock, but even international giants such as Nike and Adidas have chosen discount promotions.

The whole sports brand is having a hard time nowadays.

Especially Lining, kappa (back to back) two, the situation is the most miserable.

Miss Fang, a large sports brand dealer in Guangzhou, told reporters.

Discount sale

At the end of the year, the discount of domestic sports brands has been staged in department stores and sports brand stores all over the country.

Reporters in Guangzhou Tianhe City business district and a number of Lining, PEAK and other stores to see, everywhere are discounted promotional poster.

"Before the domestic sports brand new product listing is not discounted, and now the new goods just shelves, will hit thirty percent off.

International brands such as Nike and Adidas are also offering discounts.

Previously,

Brand names such as Adidas are not allowed to be discounted within 60 days of the launch of new products. Now, under the pressure, new products will soon join the discount market.

Because of the discount, this time, Nike and Adidas have a large volume of shipments, and the pressure of domestic brands is even greater. "

Miss Fang said in an interview with reporters.

"New products hit thirty percent off, and inventory products are more discounted, often to three to half off."

Sports brand is so crazy behind the discount that it is high inventory.

According to the semi annual report of listed companies, as of the end of June this year, Lining, Anta, XTEP, XTEP, PEAK and the total stock of these 6 domestic sports brand listed companies amounted to 3 billion 721 million yuan, exceeding the annual inventory in 2011 (the total inventory of these six companies in 2011 was 3 billion 699 million yuan).

The stock prices of these 6 Brand Company, especially PEAK, increased rapidly, compared with the end of last year, inventories had risen to 529 million yuan or more than 25% in the first half of this year.

High inventory has become a "barrier lake" hanging on the head of the domestic sports brand.

"The biggest task now is to clean up these stocks.

Otherwise, the burden of the enterprise will be heavier.

One family opened more than 500 stores in the country, and Mr. Xie, who is responsible for IPO's second-line sports brand, reluctantly accepted the telephone interview with our reporter.

Losing money leads to closing shop tides

High inventory and crazy discounts made the performance of domestic sports brand listed companies ugly this year.

According to the semi annual report in 2012, Lining's income in the first half of the year was 3 billion 880 million yuan, down 9.5% from the same period last year, and the net profit attributable to shareholders of listed companies was 44 million yuan, a decrease of 84.9% compared with the same period last year.

PEAK's total revenue in the first half of 2012 has been reduced by 28.5% to 1 billion 610 million yuan from 2 billion 256 million yuan in the same period last year, and net profit attributable to listed companies has been reduced by 43.3% to 240 million yuan.

In the first half of this year, sales revenue of Anta and 31st degree were negative year-on-year, ranging from -11.62% to 3 billion 930 million yuan and -9.95% to 2 billion 869 million yuan respectively.

The sales revenue of XTEP in 6 domestic sports brands increased year by year, but the growth rate was only 1.44%.

Faced with the embarrassing performance, the major sports brands have to cut back on their food and clothing, and deal with the current predicament through a large number of closed stores.

The reporter learned that Li Ning Co has shut down all overseas stores and has shut down shops with poor performance and low profitability.

According to statistics, in the first half of this year, Lining has closed nearly 1000 stores. Anta's semi annual report also shows that Anta is closing some inefficient stores at the same time as the new store opens. In the first half of this year, the total number of stores in Anta decreased by 110 to 9187. The data released by the PEAK in early November showed that the number of authorized retail outlets in China in the first three quarters of the group was 6739, which decreased by 1067 compared with the end of 2011. As at the end of June, the number of PEAK sports outlets in China decreased by 747 to 7059 at the end of last year.

This means that 320 retail outlets will be cut in the third quarter, that is, three retail outlets will be closed every day.

Orders will be lit in 2013.

From the published data, the domestic sports apparel brand in 2012 is doomed to be very difficult.

What makes these enterprises more worried is that the days of 2013 will not be better.

This can be seen from the orders of the major sports brand enterprises in 2013.

Recently, Anta, XTEP, PEAK and other brands have held the two quarter 2013 order meeting.

Data from Anta and XTEP released last week's two quarter order meeting showed that XTEP's orders (wholesale prices) fell by 15% to 20% compared with the same period last year, and the order amount of Anta (at wholesale value) also dropped by about 15% to 25% compared with the same period last year. PEAK's orders in the two quarter of 2013, which had just been completed, dropped by 20% to 30%, of which the clothing orders were greatly reduced, and the average wholesale price of products increased by zero at the rate of zero growth in 2013.

Lining, the industry leader, announced that in the first half of August this year, he would not announce the closing of the order.

"Although no statistics have been published, I understand that Li Ning Co's 2013 order will be very unsatisfactory and a sharp decline is inevitable."

Fang Fang, who is familiar with the industry's situation, told our reporter.

Due to the closing of the order, it often reflects the market situation in the coming year, so many industry analysts are not optimistic about the sales situation of the sportswear brand in 2013.

Zhang Bin, an apparel industry analyst at the state securities company, said that the order data were always "barometers" for the performance of domestic sports brands. The total amount of the order will decline, and the sales performance in the first half of next year will be affected accordingly.

Zhu Qinghua, a light industry researcher at CIC, also pointed out that in 2013,

In particular, the situation of sports brands is not optimistic. The domestic garment industry should tackle the crisis as soon as possible. The industry's in-depth adjustment and the pformation and upgrading of enterprises are imperative.