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    Seventy Percent Off Of The Domestic Sports Brand Has Become A Common Phenomenon.

    2012/12/20 11:18:00 39

    Sports BrandDiscountLoss

    < p > recently, the domestic "a href=" http://www.91se91.com/news/index_c.asp "sports brand < /a > giant Lining issued a profit warning, and the company is expected to suffer a substantial loss.

    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 "golden 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 brands such as Lining and Anta under the impact of foreign brands such as Nike and Adidas?

    < /p >


    < p > < strong > store on the spot opened to "discount shop", domestic sports brand collective "deep discount" < /strong > /p >


    < p > December 19th, the reporter came to a 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 several piles of high a href= "http://www.91se91.com/" target= "_blank" > shoes < /a > box and some sample shoes in the middle of the shop. Each shoe box is marked with 70 percent off or 50 percent off brands in the middle. Almost every hanging a href= "http://www.91se91.com/" target= "http://www.91se91.com/" > clothes above the shelves are temporarily pasted with Zhang Hong paper, with handwritten discount information on it.

    < /p >


    < p > the price of the down coats at the original price of 699 yuan is 399 yuan.

    Anta shopping guide to introduce, the recent promotion rate is very large, use price cuts in exchange for sales.

    < /p >


    The discount of Lining's discount shop near Anta is less than P, ranging 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.

    < /p >


    < p > this Lining discount shop occupies 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.

    < /p >


    In the field, the promotion rate of domestic sports brand dealers is greater than that of P.

    Previously, Lining launched 80 percent off major promotional activities in Wuhan, and Qingdao has launched a ten day monopoly market of less than 70 percent off.

    In Fujian, local brands such as Anta will sell at least 90 percent off off season products in Xiamen and Quanzhou.

    < /p >


    < p > < strong > reasons for "stop production for three years are enough to sell". XTEP and other 3 channels stock exceeds 8 billion yuan < /strong > < /p >.


    < p > the major sports brands have been cutting prices below a href= "http://www.91se91.com/news/index_s.asp" > sales promotion < /a >, which is a common problem of high storage 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.

    < /p >


    Mr. P, who worked in a sports brand enterprise in Fujian, told reporters that in Fujian Jinjiang, the largest sports footwear industry cluster in China, both big 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.

    < /p >


    < p > reporter survey found that more inventory also lies in channels. It is estimated that the total inventory of the brand company accounts for 20% of the total, and the remaining inventory is in the distributors and terminal retail outlets.

    Based on this calculation, the inventory of the above three companies is over 8 billion yuan.

    < /p >


    < p > 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.

    {page_break} < /p >


    < p > Li Ning Co bulletin will attribute high storage to product wholesale mode.

    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.

    < /p >


    < p > 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 operate from the brand business directly to the retail terminal.

    < /p >


    < p > < strong > why does observation always repeat the history of "made in China"? < /strong > < /p >


    < p > the domestic sports brand, which once created the myth of rapid growth, has plunged into an unprecedented development crisis. After the launch of many "broken arm healing" measures such as closing stores, cutting people and lowering prices, the industry has 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.

    < /p >


    < p > retrospect the development process of domestic sports brand. 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.

    < /p >


    < p > the dilemma of domestic sports brands also reflects the general predicament of "made in China" in the process of pformation.

    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 does "China made" get rid of this dilemma? How do you really go to the world on a professional road? The answers to these questions remain to be solved.

    < /p >


    < p > < strong > > deep "golden ten years" has ended. It is a pressing matter of the moment to safely spend the winter. < /strong > < /p >


    < p > under the pressure of "inventory crisis", the major sports brands in China are beginning 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.

    < /p >


    < p > other domestic sports brands also face similar difficulties. As a barometer of the industry market, the order data also illustrate this point.

    According to the domestic campaign < a href= "http://www.91se91.com/" target= "_blank" > clothing < /a > brand, the order for the two quarter of 2013 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%.

    < /p >


    < < p > Lining, Anta, XTEP, 361 degrees, PEAK, China trend and other 6 domestic sporting goods enterprises this year's interim results show that each sales performance is not optimistic. In addition to the slight increase of XTEP's net profit over the same period, the remaining 5's turnover and net profit have declined to varying degrees.

    < /p >


    < p > more than ten people in the industry admitted that the "golden year" of the industry started before and after 2000 has ended. The first consideration of all enterprises is to survive the current cold winter, to survive and seek further adjustment and development.

    Zhang Tao, vice president of Anta, also said: "the era of extensive growth that has been invested by quantity alone has passed."

    < /p >


    Compared with P, Adidas's international brand performance is 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.

    {page_break} < /p >


    < p > > strong > variable "deep break" and other self-help behavior is not optimistic, nearly twenty or five will be left < /strong > < /p >.


    < p > "in the next period of time, the local sportswear brand will face the 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.

    < /p >


    < p > Zhu Qinghua believes that the main reasons why local sportswear brands are facing difficulties 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.

    < /p >


    < p > industry insiders predict that although the major sports brands have introduced various measures to save themselves, the situation may not be optimistic next year. The "de Stocking" stage will take at least two or three years, 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 a href= "http://www.91se91.com/news/index_f.asp" brand "/a" will be concentrated from nearly twenty to five.

    < /p >

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