Lining Pushing The Revival Plan, The Sports Brand Stalemate Is Not Going Abroad.

Affected by the homogenization of products and declining revenue, Lining, a sports brand, was in a predicament after the great leap forward. In December 17th, the company announced that it would invest 14-18 billion yuan to carry out the "one-time channel revival plan" and expected that it will lose its performance in 2012, which is also the first "loss year" since its launch in 2004.

Analysis of the industry, Lining encountered other companies in the industry common problems, affected by inventory, clothing enterprises in the order quantity showed a "cautious". However, it is predicted that the situation of sports brands' collective stalemate will not be fully transmitted to other subdivision areas.

　　 "Revival" is costly and beyond expectations.

Lining said that the previous wholesale operation in China. Sports goods The industry rapidly expanded its marketing network 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. Because of the excessive expansion, the increase of dealer inventory has adverse effects on the store performance and profitability of retail stores, resulting in the continuous deterioration of cash flow and financial situation. Many dealers can hardly solve this situation by improving their internal operations only by themselves. At the same time, it has an impact on the company's overall sales, profitability and operating capital.

To this end, Lining will launch a "one-time channel revival plan". The expected one-time cost will range from 1 billion 400 million yuan to 1 billion 800 million yuan, including a series of measures, including focusing on supporting dealers to clean up inventory, repurchasing inventory, rationalizing sales network, and developing targeted plans to restructure individual accounts receivable structure. At the same time, we will reorganize channel policies to support retailers with strong retailing capabilities.

It is reported that the cost will be reflected in the non cash way to offset the accounts receivable. The exact amount depends on the scale and timing of the actual implementation.

Guotai Junan international pointed out that "although the stock repurchase is in line with previous judgment, the quota is still beyond expectations." Credit Suisse commented in the report that the transformation plan is in the expected orbit of the company management in July, but it is uncertain whether its revival plan is enough.

HSBC and Morgan Stanley expressed their support after the launch of the Lining plan. Lining The "reduction" rating. Morgan Stanley believes that if Lining fails to cut more costs and manage its cash flow more effectively, it may need to be refinancing in 2013.

　 The whole industry is cold, Lining fell into the first "loss year".

Compared with the overall double-digit growth of China's sporting goods industry in 2011, it has slowed down to a single digit figure in 2012, and the pressure of retail end inventory is still fierce. At the same time, with the growth of residents' income and the gradual maturity of consumption concept, consumers' demand for brand and product value has improved significantly.

Under the above background, even domestic leading enterprises can not reverse the declining trend of performance decline. Statistics show that in 2010, Lining got the highest net profit in history of about 1 billion 100 million yuan; in 2011, net profit fell sharply from 65% to 390 million yuan; in the first half of 2012, the net profit was only 44 million yuan. And earnings warning shows that the company expects net profit in 2012 will be a substantial loss, which will become the first year of loss since the company went public in 2004.

"Our recent retail research in Jinjiang and Shenzhen shows that retail outlets are sparsely populated and the overall industry retail situation is not optimistic. Lining's massive repurchase inventory needs a long time to digest, and the road to recovery is still very long. Next year, it may still face losses. Guotai Junan international analyst Peng Gangxiang pointed out.

It is worth noticing that the Lining family is not only troubled by the decline of performance, but in the first half of 2012, the turnover of Anta sports decreased 11.6% to 3 billion 930 million yuan compared with the same period last year, 361 points decreased by 10% compared with the same period last year, PEAK sports decreased by 28.5% compared with the same period last year, and the number of closed stores in the first three quarters of PEAK reached 1067.

　　 Dealers cautiously stocking

At the end of the two quarter of 2013, the total volume of PEAK orders fell by 20%-30%. It is understood that PEAK encourages distributors to place orders with caution, thereby reducing the chance of excessive orders. At the same time, PEAK is still optimizing its ordering mode, and expects that the proportion of future orders will be increased.

Apart from the sports brand, the reporter learned from the casual brand Semir clothing that the total order volume of the company's spring and summer order meeting in 2013 was only a small increase. Semir secretaries Zheng Hongwei told reporters that companies and agents are more concerned about inventory, do not want to have over season products. If the market is optimistic, the demand will be met through quick replacement.

What makes the enterprise so cautious is the inventory problem that the industry has always been very concerned about. Wang Zhuo, Secretary General of the China clothing (000902) association, said it is undeniable that there are indeed some unreasonable growth of some domestic brand clothing enterprises. However, the "inventory" of listed companies is not only referring to "backlog and unsalable products", but also the inventory of inventory and logistics links in the channels. For now, inventory growth has been significantly lower than sales revenue growth. The inventory of the enterprise is completely within the controllable range.

361 degree vice president Zhu Chen Ye The inventory pressure has been alleviated by measures such as inventory clearance, new products letting and discount stores.

It is worth mentioning that, in the interview, the reporter found that most practitioners expect that China's sports brand will not spread to other clothing subdivision areas.

"For example, casual wear, the demand for the industry itself is still at a normal growth stage, and the capacity of 600 billion yuan is much higher than that of other garment sub sectors." Orient Securities clothing industry analyst Shi Hongmei pointed out. In addition, with the same style of sportswear in China, local casual wear can continue to be subdivided. There are essential differences in this aspect, so the probability of going to sports apparel enterprises is very small.

However, the industry experts still suggest that the consumer demand in China is increasingly diversified, personalized and fast changing. Clothing shoe and hat enterprises must strengthen market research efforts to meet consumers' tastes with keen market tactility, precise market positioning and quality product quality.