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    Sports Brand Survey: XTEP And Other 3 Channels Stock Exceeds 8 Billion

    2012/12/20 9:02:00 34

    Sports BrandXTEPInventory

     


     


    The "inventory crisis" is overhanging and the industry is facing a shuffle.


    Recently, domestic Sports brand Lining issued a profit warning and expected a substantial loss in the company. This year, not only is Lining facing difficulties, but the domestic sports brand industry is facing the current situation of poor overall performance. News such as "discount and clear inventory", "a large number of stores closing" and "declining orders" are coming from time to time. As domestic sports brands really say, as the industry has said, the "gold (1668.50,0.80,0.05%) ten years" beginning in 2000 has ended and will enter the adjustment and shuffling period in the future? Most brands are facing the elimination crisis. What are the current survival situations of these domestic sports brands such as Lining and Anta under the impact of Nike and Adidas brands?


     


     


     


      



     


    First half of the 5 domestic sports brand revenue for map /CFP


      



    Domestic sports brand hit 70 percent off is a common phenomenon.


     


    scene


    Store opened to discount stores


    Domestic sports brand collective "deep discount"


    Yesterday, the reporter came to an Anta store in an Hui North Lane. The loudspeaker at the door repeated, "welcome to Anta, store clearance sale, all goods 3 fold up", there are piles of high piles in the middle of the shop. shoes Boxes and some sample shoes, each of which is marked with 70 percent off or 50 percent off brands in the middle of each shoe box. clothes On top of the shelves are sheets of red paper pasted on the shelves with handwritten discount information.


    "The original price of 699 yuan down jacket at the current price of 399 yuan." Anta shopping guide to introduce, the recent promotion rate is very large, use price cuts in exchange for sales.


    In the Lining discount store next to Anta, the discount rate for the old ones ranges from 70 percent off to 30 percent off. According to the shopping guide, in addition to the original discount, buy two pieces at a time, you can also fold up to twenty percent off.


    The Lining discount store covers a large area, and the underwear, sports shoes and accessories are well arranged. "The head office sends us an email to tell us what promotion to do, and we will execute it. At the end of the day, we will send an email to inform us that we have not received any mail to stop marketing." According to the shopping guide, before opening the shop, it was a franchised store without discount, and somehow became a discount store.


    In the field, the promotion rate of domestic sports brand dealers is even greater. Previously, Lining set off 80 percent off major promotions in Wuhan and also launched a ten - day monopoly of less than 70 percent off in Qingdao. In Fujian, local brands such as Anta will sell at least 90 percent off off season products in Xiamen and Quanzhou.


    Reason


    "Stop production for three years is enough to sell."


       XTEP And other 3 channels inventory exceeds 8 billion yuan.


    Behind all the major sports brands' sales promotion, there is a high storage problem commonly encountered in the industry. The industry has had the view that "even if the domestic sports brand enterprises stop production for three years, they are still enough to sell". Although this view was subsequently exaggerated, the six major brands in the domestic sporting goods industry, Anta, Lining, XTEP, 361o, PEAK and China, all showed serious inventory problems.


    Mr. Wang, who worked in a sports brand enterprise in Fujian, told reporters that in Fujian Jinjiang, the largest sports footwear industry cluster in China, large and small enterprises are facing the problem of overstocking. According to the China Daily, XTEP international, PEAK sports and 331 degree three companies were 700 million 900 thousand yuan, 528 million yuan and 366 million yuan respectively, totaling nearly 1 billion 600 million yuan.


    A reporter survey found that more inventory is still in the channel, it is estimated that the brand company's inventory accounts for about 20% of the total, the remaining inventory in distributors and terminal retail stores. Based on this calculation, the inventory of the above three companies is over 8 billion yuan.


    Mr. Wang believes that the overcapacity of domestic sports brands is due to the blind expansion. "Before the Beijing Olympic Games, the sports brand industry's high boom made the big and small sports brands expand, expand their capacity, shop everywhere, factories desperately shipped, dealers desperately picked up goods. Unexpectedly, the market environment has changed, and the enterprises themselves are too similar because of the product mix and marketing mode, resulting in the accumulation of inventory.


    The Li Ning Co bulletin attributed the high inventory to the wholesale mode of products. According to the announcement, the group has previously expanded its marketing network in the sporting goods industry in China through the wholesale operation to seize market share. However, in recent years, the growth rate of the whole industry has been declining rapidly and showing signs of saturation, which is no longer suitable for the development of the industry.


    According to the insiders, in view of the problem that the wholesale mode is easy to develop too fast and the channel inventory is too high, some sports brand enterprises in China are trying to directly operate from the brand business to the retail terminal.


      observation


    Why do we always have "made in China"?


    Constantly repeating history?


    The domestic sports brand that once created the myth of rapid growth has plunged into an unprecedented development crisis. After the introduction of many "broken arm and wound healing" measures such as closing stores, cutting people and lowering prices, the industry also entered the cold winter from prosperity. It is thought-provoking that in fact, the sports brand in China is no stranger to the road from "decline" to "glory", and the "made in China" of hero pen, domestic mobile phone and so on seems to have gone through a similar journey. {page_break}


    Tracing back to the development process of domestic sports brands, with the rapid growth of domestic economy and the promotion of sports heat brought by the Beijing Olympic Games, the sales volume of China's sporting goods industry in 2007 was 69 billion yuan, and in 2009 it reached the peak level of 111 billion yuan. Against this background, the overoptimism of the prospect has made enterprises increase investment and expand production capacity. With the rapid expansion of stores due to the massive influx of funds brought by the tide of listing, the market is in a rush to prepare for greater breakthroughs. The industry begins to face the current situation of declining orders, high inventory and declining profits.


    The plight of domestic sports brands also reflects the general predicament of "made in China" in the process of transformation. With the advantage of external economic environment and demographic dividend, it quickly grabbed the market to achieve a certain scale in the early years. However, after having a certain scale, it often encountered bottlenecks that could not make strong brands. Only satisfied with the extensive growth brought about by the expansion of the scale, once the external economic environment deteriorated, it fell into a trap of overcapacity and declining orders, which has been repeatedly verified by the development process of many industries. How to break away from the dilemma of "made in China" and how to go to the world professionally? The answer to these questions remains to be solved.


      depth


    "Golden ten years" has ended


    Safety "winter" is a top priority.


    Under the pressure of "inventory crisis", the major sports brands in China began to show signs of decline. Public information, Lining profit in the first half of this year fell 85%, operating income fell 10% to 3 billion 880 million yuan, the company's share price fell 35% over the same period. At the same time, Lining has closed nearly 1000 stores.


    Other domestic sports brands also face similar difficulties. As a barometer of the industrial market, the order data also illustrate this point. According to domestic sports clothing In the two quarter of 2013, the order will show that the orders of various orders, including Anta, XTEP and PEAK, have declined to varying degrees. Among them, XTEP orders fell by 15% to 20%, Anta fell 15% to 25% compared to the same period, and PEAK fell by 20% to 30%.


    Lining, Anta, XTEP, 361 degrees, PEAK, China Trends and other 6 domestic sporting goods enterprises this year's interim results show that each sales performance is not optimistic, in addition to XTEP's net profit grew slightly, the remaining 5 of the turnover and net profit have declined to varying degrees.


    Many people in the industry admitted that the "golden ten years" of the industry began before and after 2000, and the first consideration of all enterprises is to survive the current cold winter and seek survival. Zhang Tao, vice president of Anta, also said: "the era of extensive growth that has been invested by quantity alone has passed."


    In contrast, Adidas and other international brands are against the market. Its first half of this year's report shows that global sales reached 7 billion 341 million euros, an increase of 11% over the same period, and net profit of 455 million euros, up 30% over the same period last year. Among them, Adidas's sales in the Chinese market increased by 19%, and its achievements were attributed to the strategy of expanding to three or four tier cities, which made the domestic brands that were dominant in these places squeezed.


      Variable


    "Deep break" and other self-help behavior is not optimistic.


    Nearly twenty or five will be left.


    "In the next period of time, the local sportswear brand will face a shuffling period. The tide of M & A will emerge in the industry, and the backward and excess capacity will be eliminated, so that the market supply and demand will be balanced." Zhu Qinghua, a light industry researcher at CIC, believes that local sports apparel brands are facing such problems as poor sales, high inventory and serious homogenization. These problems have caused local sports brands to suffer heavy losses, and profits have continued to be at a low level, and some enterprises have even suffered substantial losses.


    Zhu Qinghua believes that the main reasons for the predicament of local sports clothing brands are: on the one hand, China's macroeconomic trend is relatively low this year, the purchasing power level of consumers is declining, and the market demand for sportswear is sluggish. On the other hand, local sports clothing brands pay attention to scale expansion and neglect the enhancement of brand image, leading to serious homogenization competition. China's local sports brand should shift from extensive development to intensive development. Otherwise, this dilemma will continue for a long time.


    People in the industry expect that although the major sports brands have introduced various measures to save themselves, the situation may not be optimistic next year. Stock It will take at least two or three years to usher in the industry, and it will take time to usher in the industry recovery. In this process, some brands that are not suited to the situation will be eliminated, and the remaining brands will be concentrated from around twenty to five.

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