How Can The Sports Industry Get Ready To Move?

Because production is thin, most of them are thin.

Clothing companies, such as Anta, generally outsource more products to other companies.

But unlike other brands, there are signs that the Peak Sport Products Co Limited (01968.HK, hereinafter referred to as PEAK) is increasing its production rate.

Data show that in the first half of this year, the total cost of PEAK's total production cost has increased from 34.3% in the first half of 2011 to 38.9% in the same period in 2012.

Ready to move?

Reporters learned in November 26th that PEAK invested about 80 million yuan to expand production facilities in Huian County of Fujian province and Shanggao County of Jiangxi province.

PEAK public relations director stressed to reporters, "investment in these two facilities is mainly to optimize production lines and project matching, production capacity has not increased."

To ease the impact of rising labor costs in coastal areas, another PEAK was built in Heze, Shandong.

Production facilities (Shandong project), the main construction project started in 2011 and is expected to be completed in 5 years. After the project is fully put into operation, its capacity will reach 30 million, and the total capital expenditure will be RMB 1 billion yuan.

Data show that PEAK's self production rate has improved recently.

From the ratio of footwear and clothing products (calculated by production), it has increased from 48% and 24.7% in the first half of 2011 to 58.3% and 32.2% in the same period in 2012.

In the first half of this year, the total cost of PEAK's total production cost has increased from 34.3% in the first half of 2011 to 38.9% in the same period in 2012.

PEAK's strategic model can be seen in the opposite direction, which is also reflected in the expansion of overseas markets.

At present, most domestic sports brands are shrinking the international front and the main domestic market.

Not only because of the European debt crisis, the demand for overseas markets has been greatly reduced, but also because of the penetration of domestic brands is still far less than Nike, Adidas and other international brands.

Lining is the most typical representative, not only has shut down all overseas shops, Lining's new executive vice president Jin Zhenjun said in a media interview shortly before that Lining will target consumers who move to the big cities from the countryside. Lining's goal in the next two years is to increase China's market share by 40%.

In contrast, PEAK's strategy of developing the international market has not wavered.

At present, PEAK accounts for 12.2% of the total revenue of the overseas market, and is the tallest in the Chinese sports brand.

PEAK company told reporters that the company's goal is to sell in 100 countries and regions in the next 5 years and get a sales income of 10 billion yuan.

Recently, PEAK signed the German Basketball Association, will be an exclusive equipment supplier and global strategic partner.

Lining, Anta and other companies adhere to the whole brand strategy, and constantly infiltrate the basketball field, causing a lot of trouble to PEAK.

PEAK told reporters that it is currently negotiating several top NBA stars and strong national teams, as well as some international events.

Orders will be red.

In the Chinese market, PEAK is based on two or three line cities.

The industry told reporters that PEAK's channel capability in China is not strong, and the overall trend is in a downward trend.

In the first three quarters of 2012, PEAK closed more than 1000 stores in China and became the largest number of domestic sports brands.

Net profit fell by 43.3% in the first half of this year to 240 million yuan, and the average turnover of retail outlets in China and the average turnover per unit retail area decreased by 30% and 34.3% compared with the same period last year, and the average turnover period increased from 49 days to 86 days.

Because sports brand performance "barometer" order will be even more bleak.

PEAK has just finished the two quarter next year, the total orders fell 20% to 30%, of which clothing orders greatly decreased, the average wholesale price of products zero growth.

However, PEAK is not the only one that has suffered a decline in orders.

Anta (02020.HK) and XTEP (03168.HK) also announced the order meeting in the two quarter of 2013.

The amount of XTEP orders (at wholesale prices) decreased by 15% to 20% compared with the same period last year. The order amount of Anta (wholesale value) also dropped by about 15% to 25% compared with the same period last year. Anta's same brand sales also fell in the three quarter of this year.

For the most concerned Lining (02331.HK), in the semi annual performance briefing held in August this year, the former CFO Zhong Yi Qi announced that he would no longer announce the closing of the order meeting from now on.

Gold securities Zhang Bin said the market is generally right.

The amount is relatively sensitive. The order will be reflected in the performance of the first half of next year.