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    Sports Brand Is Expanding Blindly, And Quanzhou Sports Brand Is Now Facing "Cold Winter".

    2012/12/10 9:56:00 18

    Sports Footwear IndustryFootwear IndustryJinjiangStock

     

    < p > < < a href= > http://www.91se91.com/news/index_p.asp > > Jinjiang < /a > sports brand enterprises are not enough to sell for three years.

    This is a fact that is known to all in the footwear industry of Jinjiang.

    < /p >


    < p > Jinjiang City, Fujian Province, is the largest sports shoes and clothing industrial cluster in China. The annual output of 1 billion pairs of sports shoes account for 20% of the world's total output.

    Among them, Jinjiang sports shoes and clothing brand sales account for 65%-70% of the domestic market.

    < /p >


    < p > in the top ten sports shoes and clothing brands in China, besides Nike, Lining and Adidas, the rest include Anta, 31st, XTEP, PEAK, Jordan and so on, all of which are sports brands of Jinjiang (Quanzhou).

    In addition, Jinjiang has a large number of two or three line sports brands and export processing plants.

    However, the blind expansion of industries before and after the 2008 Olympic Games in Beijing has made Quanzhou's sports brand enterprises like "cold winter". This is exactly the true portrayal of the whole a href= "http://www.91se91.com/news/index_c.asp" sports apparel industry < /a >.

    < /p >


    < p > < strong > store shrinkage more than 10% < /strong > < /p >


    < p > "this year Anta only closed 200 stores in Guangdong province."

    Lin Mingfa, who was once the brand director of many Jinjiang sports enterprises such as XTEP, said that "the entire Jinjiang sports brand stores shrink by more than 10%."

    < /p >


    < p > 2012 China Daily reported that Quanzhou sports brand was not optimistic in the expansion of stores.

    < /p >


    < p > PEAK sports (01968.HK) store number decreased from 741 to 7059, basically in 10% shrinkage range. This is the only one in Quanzhou's four largest Hongkong listed sports brand that shows less stores.

    < /p >


    < p > Anta sports (02020.HK) and XTEP International (01368.HK) increased by 29 and 7 stores for half a year. However, these figures are almost negligible compared with the rapid growth in previous years.

    < /p >


    "P", however, 331 (01361.HK) reported that the increase of 185 to 8050 stores, is a big bright spot in the context of the scale contraction of the brand.

    < /p >


    < p > according to the introduction, from the manufacturer to the agent, the price of Quanzhou sports shoes and clothes is generally 3.5-4.5 fold, while terminal retail price is increased by 20% and profits are sold on this basis.

    "Sports shoes and clothing are now sold at a discount of 3-4, and retailers can only close them."

    Lin Mingfa said.

    < /p >


    "P" a few days ago, Lin Ming returned to his colleagues and said that a Jinjiang sports brand listed in Hongkong had to turn off a number of franchised stores because of its poor market and was looking for buyers.

    < /p >


    < p > a Jinjiang sports brand listed in Malaysia, Fujian agent told our reporter, "do not open a store now. If you want to open it, you will open some small counters."

    She said her agency's brand stores had been shut down, and she had planned to quit her agency business for more than a decade.

    < /p >


    < p > it is understood that the backlog of inventory has begun to appear in the second half of 2010. In 2011, there was a sales discount.

    < /p >


    < p > "now when the agent orders, the manufacturers tell them to be careful, because the goods in the channel, manufacturers also have to bear the consequences."

    Lin Mingfa said.

    < /p >


    < p > "every stock is very serious" (< /p >).


    < p > "Jinjiang enterprises are not enough to sell for three years". Quanzhou sports shoes and clothing industry is popular.

    < /p >


    < p >, how much of the inventory is there? < /p >


    < p > China Daily reported that XTEP international, PEAK sports and 31st three companies were 700 million 900 thousand yuan, 528 million yuan and 366 million yuan respectively, totaling nearly 1 billion 600 million yuan.

    < /p >


    < p > "enterprises above Designated Size in Quanzhou" a href= "http://www.91se91.com/news/index_x.asp" > shoes < /a > inventory backlog is around about 4000000000.

    Li Jun, Executive Deputy Secretary General of Fujian footwear industry association, told the "China Times" reporter, but Li Jun said that the figure was estimated from various economic operations and exchanges with enterprises. "There is no way to specifically count the inventory data of enterprises."

    < /p >


    < p > "every stock is very serious, big or small."

    Wang Rongyao, who was once the head of the marketing department of a famous sports brand in Jinjiang, said that as for the total inventory, he said no one had counted it and could not calculate it.

    < /p >


    < p class= "P0" > {page_break} < /p >


    < p > < /p >.


    < p > according to Wang Rongyao, in the spatial distribution of inventory, brand companies generally account for 15%-20% of total, regional distributors and terminal retail outlets account for 70%-80%.

    < /p >


    < p > if this ratio is calculated, only XTEP international, PEAK sports, and 31st three companies will have less than 8 billion yuan in channel inventory.

    < /p >


    < p > Wang Rongyao also said that the current inventory of products in 2010 and 2011 mainly accounted for 25% of inventory and 40%-45% respectively.

    < /p >


    < p > the blind expansion of enterprises is the fundamental reason for the overcapacity of the domestic sports brands.

    < /p >


    < p > "in order to have a big breakthrough in the Beijing Olympic year, enterprises in 2007 and 2008 gave the middle channel a lot of market pressure, including the designated distribution quota."

    Wang Rongyao said.

    < /p >


    < p > "dealers in order to enjoy a lower discount, desperate purchase, manufacturers desperately shipped."

    Lin Mingfa told reporters.

    < /p >


    < p > 2008 Beijing Olympic Games not only did not bring more market share to the enterprises, but the following "a href=" http://www.91se91.com/news/index_cj.asp "financial crisis" /a "also caused the optimistic forecast of enterprises to be hit.

    < /p >


    After P > 2008, many Quanzhou two or three sports brands are overloaded.

    "Most enterprises are not making money, they are expanding their networks, and we can see that there will be a crash."

    Wang Rongyao said the industry had long thought so.

    < /p >


    < p > relying on hard to build up a huge network, the only way out for enterprises is packaging and listing.

    "Relying on the listing of this straw, it is possible to turn losses into profits and reverse the situation."

    < /p >


    < p > however, the macroeconomic environment and capital market have not given enough time to sports shoes and clothing industry, and individual enterprises have been "rushing to the ground".

    < /p >


    < p > "they can't go back to the road, they can only move forward," Wang Rongyao said.

    < /p >


    < p > < strong > domestic export turnover < /strong > < /p >


    < p > "domestic sales to export", this is a new phenomenon discovered by Zhang Xiangrong, a foreign trader, this year.

    < /p >


    < p > "domestic second-line sports brand, through some channels, the stock is sold abroad at a low price, this phenomenon is a lot."

    < /p >


    < p > Anta, KAPPA and other domestic brands and their processing factories have turned to grab foreign trade lists. "Prices are depressed and the impact on foreign trade is relatively large."

    Zhang Xiangrong told reporters.

    < /p >


    < p > Zhang Xiangrong said, because the domestic market is not good, the domestic equipment brand processing enterprise equipment utilization rate is around 50%-60%, "this is relatively conservative and optimistic estimate."

    < /p >


    < p > in the face of inventory pressure, Anta sports 2012 China Daily said, "more factory shops and discount stores will be set up to clean up the seasonal inventory, and it is expected that the clearance action in the industry will continue for a period of time."

    < /p >


    < p > it is understood that large factory shops generally sell unsalable products, belonging to the "wash goods" nature, the price is between 3-5 fold.

    < /p >


    < p > cleaning up inventory in the industry, "at least 2-3 years to digest."

    Wang Rongyao said.

    < /p >


    < p > 2003 to 2007 is the "golden five years" of Quanzhou sports brand.

    During that period, "everyone has meat to eat", anyone can make money.

    And the end of an industry boom cycle makes the original extensive and blind business model "show its true colors".

    "The era of shop expansion is over."

    Lin Mingfa said.

    < /p >


    < p > Li Jun said that many brand enterprises are also considering zero inventory operation mode.

    < /p >


    < p > Wang Rongyao originally hoped that the industry could take 3-5 years to return to reason.

    Maybe this time is an opportunity.

    < /p >

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