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    How Can Sports Brands Survive And Develop Under Multi Lateral Extrusion?

    2012/11/30 9:19:00 10

    Sports BrandRetail StoreDecline

    In recent years,

    Lining

    Domestic sports brands such as PEAK and Anta have closed several stores in Quanzhou.

    To this month, except for shopping malls and shops in downtown Quanzhou, Lining has only one South Junlu road along the street store, while Anta has only three brand shops in Zhongshan Road, 91 street and Tian An Road.


    Since the beginning of this year, the number of retail outlets of sports brands has dropped significantly.

    At the moment, it is difficult for sports brands to avoid such a sensitive problem - fewer stores, fewer orders and more stocks.


    "When the lease contract expires, the boss will not continue to operate."

    Nan Jun road PUMA salesman responded to the closing of PUMA Nan Jun shop.

    Since this year, PUMA has been closed in 91 shops in Quanzhou and South Junlu.


    Just as the world's third largest sports brand Puma group's weight-loss plan has just landed, China's local sports brands have also been drying out the latest downsizing plan.


    Reporters visited the South Junlu Road, Tuen Mun street, Zhongshan Road and other business circles and found that compared with the previous years, the sports brand store appears rather cold.

    Lining, a salesperson at Nan Jun Road, told reporters that in the downtown area of Quanzhou, Lining had only one shop along the street.

    As early as a few years ago, Lining was shut down in the downtown area of Zhongshan Road. But now, the embarrassment of Lining shop has not been improved.


    Data show that in the first half of 2012, Lining Group continued to promote changes in sales channels. On the basis of newly opened 248 stores, it made a profit assessment for the shops, and made structural adjustments, closing 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, a net decrease of 952 from the end of last year.


    PEAK sports are also concerned with Lining group.

    Compared with XTEP, Anta and so on, PEAK has always advocated basing itself on Quanzhou's local market, but now the urban stores are reduced to less than 10.

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

    Not only PEAK, Anta sports, but also the total number of stores this year has decreased by 110.


    Consumption turn


    Compared with the closing tide of shops along the street, sports brands are more calm and stable.


    In the shopping malls of sporting goods, such as Dayang department store, Puxi Wanda Plaza and China min Bahui, most of the distributors have advertised for price promotions.

    Fast fashion brands with dense crowd flow

    clothing

    Compared to sports in stores, sports

    Brand clothing

    The stores in the mall looked relatively cold.


    "As consumers mature, they are increasingly demanding professionalism and fashion.

    If you turn around without a desirable product, turn around and buy someone else's, and it will not take more than 1 minutes to turn around. "

    The owner of a sports brand store introduces.

    Consumers' brand loyalty is far less than 35 years ago, and different consumer preferences are different. Weather and season will also affect the market performance of products.

    "Only when goods are sold well, can business be done well."


    The opening of Wanda, including the development of fast fashion brands such as ZARA and UNIQLO, has brought more choices to consumers.

    "Usually, in H&M, ZARA and other fast fashion brand stores, you will see many popular seasonal fashion styles, but the price is not expensive, the styles are updated quickly, and the design is full of fashion sense."

    Xiao Chen, who is shopping at ZARA, told reporters that he rarely bought sports brands, but rather favored fast fashion. "One or two sports suits are enough, and occasionally play ball and climb mountains, usually wear leisure.

    Clothes & Accessories

    More. "


    Experts believe that the sports brand is not only facing the same industry competition pressure, but also by the leisure and fashion apparel market squeeze.

    "Consumers are limited, but brands are expanding. With the emergence of more and more fashion apparel brands, consumers have more choices, and the market cake is getting smaller and smaller.

    Compared with international brands, there is still a big gap between domestic brands in brand marketing and new product development. "


    At present, the sports brand "discount war" is becoming more and more intense in the market. The PEAK franchised store of Nan Jun road has launched the "promotion warehouse at the end of the year, the whole stadium three fold up" diving promotion, the original price two hundred or three hundred yuan.

    shoes

    Now it is reduced to less than 100 yuan.


    Coincidentally, this year, Anta's new products are listed, and consumers enjoy a discount of 12% off, two, 22% off.

    Including 361 degrees, XTEP, Jordan and many other sports brands are also playing the promotional card.

    In the Department of foreign affairs, the newly listed Nike down garments are also on sale at a discount, which is rare in previous years.


    Exposure crisis


    For the major sports brands, the 2008 Beijing Olympic Games is undoubtedly a good opportunity to go to market.

    The "Crazy" shop has never stopped. After the Olympic year, sports brand competition is fierce all over the world.


    Famous international sports brand giants such as Nike and Adidas have put their business emphasis on China, and domestic sports brands are also surging, hoping to seize this rare opportunity.

    Even a mature and steady veteran force can feel the aggressive edge of those rising stars.

    At present, there are more than 200 sportswear companies with different brands in Jinjiang alone, and new brands are constantly entering and cutting the market.


    {page_break}


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


    However, with the increasing pace of expansion, brand homogenization is becoming increasingly grim.

    "Now that too many sports brand stores are crowded together, the competition between them is becoming increasingly fierce. There are also many inefficient stores in these stores, which are not well managed and managed."

    The industry pointed out that the current closure is inefficient shops, the evaluation results, the unit area output ratio is relatively low, or the high rent of the pavement is not cost-effective, there are small shops, competitive distributors are not strong enough.


    "High inventory" is a common experience this year.

    Wang Bing, an analyst with Japan's apparel industry, told reporters that this year's macro-economic downturn and the cold market as a whole are the main reasons for the pressure on clothing companies to face inventory pressure.

    "In the past few years, the garment industry has been expanding rapidly, and the stock pressure has been obscured by the good economic situation. Now the economy is in recession, the crisis is exposed."


    "Closing the door is something unexpected."

    Insiders told reporters that the rise in store rentals and human resources has made it difficult for sports brands to survive. At the same time, the homogenization of sports brands in China is serious, and the styles are basically following the trend, without individuality, which are unfavorable to brand development.


    Quanzhou Zhongnan investment adviser Xue Zhaoyang told reporters that domestic sports

    brand

    The development mode of horse race enclosure and quantity winning has been difficult to continue. Labor, rent cost rising and product homogeneity are serious, so the marginal benefits of large-scale shops become smaller or even lose.

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