Sports Brand Is Bound To Carry Out Strategic Adjustment.

This winter is especially cold, as cold as weather. clothing The feeling of industry and enterprise.

In December 17, 2012, Lining, a representative enterprise of China's national sports apparel, released a notice that it expected to make substantial losses in 2012. This is the first time that Li Ning Co has expected to make a big loss in 8 years since its listing in June 2004. From 2009 to 2010, Li Ning Co realized a profit of 1 billion 342 million yuan and 1 billion 547 million yuan respectively, down to 631 million yuan in 2011, far below the 960 million yuan in 2008. By the first half of 2012, the company's operating profit was only 184 million. Since last year, Lining group has closed 1200 stores.

Statistics show that: in the first half of 2012, Lining, Anta (franchised store), 31st degree, XTEP, PEAK and the total stock of these 6 domestic sports brands reached 3 billion 721 million yuan; the total inventory of 22 A shares listed companies reached 38 billion 200 million yuan in the third quarter, of which the China Group's inventory was 3 billion 481 million yuan. Clothes & Accessories 21.99, Semir clothing 14.39, seven wolves, nine Mu Wang and other 9 men's clothing companies total inventory of 3 billion 862 million.

　　 Channel entanglement

Dealers, franchisees operating difficulties, the huge expansion of the network in recent years has become the cost and profit burden of enterprises. The Li Ning Co closed 1200 stores in the first half of 2012. The announcement of PEAK sports also showed that as of September 30th, its authorized retail outlets in China were 6739, compared with 1067 at the end of last year. The total number of stores in Anta also decreased by 110. Data show that in the first half of 2012, China had 569 stores and 2550 retail outlets, and Anta sports reduced 110 to 9187.

The adjustment of self - running and joining agents is facing contradictions: it is reflected in the turmoil of Daphne and franchisees.

The contradiction between electronic commerce and offline stores: online and offline "distributors" break through distributors, and Lining is falling into a dilemma between left and right hands. 2012, since the online shopping mall was launched online, it has not been expected that low price promotions on the Internet have led to endless complaints from distributors and forced to close. A Lining County county-level market distributor said that the low discount of online sales has affected the entity. In 2012, Lining launched the campus agent recruitment, its purpose is to further spread the consumer group to the post-90s student group, and at the same time to drive the sales data of the official website at a low price, but it has caused some two or three line market distributors' dissatisfaction. In addition, a series of promotional schemes adopted by Lining electric providers in the second half of this year have intensified the conflict.

　　 Excessive expansion and hidden danger

After the 2008 Beijing Olympic Games, the Olympic Games and the four trillion economic stimulus brought about a rapid rebound in the economy, and the employment improvement and wage increase brought about by the shortage of labor. China's clothing industry, especially the brand movement and leisure clothing enterprises, welcomed the period of expansion and expansion. Tracing back to the development process of sports brand in China, after the successful bidding of Beijing Olympic Games, the sporting goods market in China showed a blowout trend. Sports brand and traditional clothing brand went through the development of "golden ten years".

In 2007, the sales volume of China's sporting goods industry was 69 billion yuan, and in 2009 it reached the peak level of 111 billion yuan. Over the past 5 years, the number of sporting goods stores in China has grown at an average annual rate of 10%, with sales growth at an average annual rate of 20%. Against this background, the prospect is over optimistic, which makes enterprises increase investment and expand production capacity. Until the peak of domestic sports brand carnival, it is found that only three to four famous sports brands occupy different market patterns in other countries, and China's famous sports brands have reached more than 20.

By the end of 2011, most brands in China had reached more than 5000 stores, and some of them were close to 10000, for example, PEAK sports reached more than 8800. Between 2004 and 2008, Lining's store increased from 2272 to 5935, and its income increased from 1 billion 878 million yuan to 6 billion 690 million yuan.

The turnip is fast. The rapid expansion of garment enterprises has not brought about the improvement of brand awareness. The problem of homogenization is serious. Consumers' expectations for goods are very low. Enterprises imitate each other very fiercely, a consumer takes Anta. clothes Lining's clothes may not be able to tell which one it is, unless it looks at the trademark.

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　 The reality of cold demand

According to the National Bureau of statistics, clothing from 1 to October 2011 shoes Cap and needle Spin The total retail sales of goods increased by 24% over the same period last year, while the growth rate of similar products in 2012 to October was 17.9%. In the coming year, taking PEAK as an example, the total volume of orders for PEAK in the second quarter in 2013 (calculated at wholesale prices) decreased by 20% to 30% compared with that in 2012.

Among them, the amount of footwear orders decreased, clothing orders fell sharply, and the average wholesale prices of products were zero growth. According to the domestic sports apparel brand in the two quarter of 2013, orders will show, including Anta, XTEP, other orders, year-on-year have declined to varying degrees. Among them, XTEP orders fell 15% to 20%, Anta fell 15% to 25% over the same period.

The order data is often a barometer of the industry market. How much can we see the dilemma of domestic sports brands nowadays?

From the perspective of external demand, the impact of economic crisis in Europe and the United States appears, and demand is not strong. At the same time, some foreign capital orders are transferred to lower cost countries.

　　 Rising costs can not be avoided

In recent years, the rent, decoration, store maintenance and labor cost of shoes and clothing enterprises have been increasing, which has greatly squeezed the profit margins of enterprises. On the other hand, the clothing market has been in a state of depression due to the macroeconomic impact, with high inventory and sharp decline in sales performance. Rent, decoration, store maintenance and labor cost account for 50% to 60% of the cost of the store.

Extensive operation is the root cause

Local sports brands pay attention to scale expansion and neglect the enhancement of brand image, leading to serious homogenization competition. A careful analysis of the products and positioning of the major sports brands in China will find that the similarity of them is astonishing. For example, in terms of products, basketball, jogging, comprehensive training, sports and leisure are all kinds of products developed by these brands, not to mention the similarities in product design and LOGO; in addition, almost all brands have gone through a way of advertising sales, which is "celebrity invitation" and "rush to fame". Blind rapid expansion and light research and development and putting the cart before the horse have led to the gradual weakening of the overall competitiveness of sports brands.

The findings of the research institutes on the main customer groups of sports brands in China (13 to 30 years old) show that the brand image of domestic sports brands is blurred, and the styles, designs and celebrity effects are quite different from those of famous brands such as Adidas and Nike. Along with this, there are still a number of enterprise quality problems that frequently promote brand aging. For example, in 2008, the Shanxi provincial quality and Technology Supervision Bureau issued the fourth quarter regular supervision and inspection of the list of unqualified goods and enterprises, and Shanghai Metersbonwe dress, Zhejiang Busen dress and so on failed to be exposed.

Not only that, but in May 23, 2011, the the Great Wall network again exposed Metersbonwe and published a complaint about Metersbonwe's quality problems: these quality crises finally caused serious losses to Metersbonwe's brand.

　　 The demand turn is very unexpected.

In recent years, fashion trends such as ZARA, H&M and other foreign brands have quickly overshadowed the trend of sports. After 2010, the trend of consumption has changed a lot. Some of them are more professional. Some of them are looking for more fashionable, more casual and more typed products. In 2012, the number of ZARA and H&M stores in China exceeded 100, covering more than 40 cities.

　 The transformation of enterprises is big.

In the past two years, e-commerce enterprises have been developing rapidly after entering the garment industry. They not only bring huge impact to entity distributors, but also gradually establish their own brands. After all customers, Dangdang also launched its own home brand Dangdang superior products. At the same time, there are also reports that Jingdong mall will also launch its own business. Brand clothing 。 The electric business enterprise was born in the Internet era. It has strong innovation and user experience genes and conditions. In many ways, it has been in the front of the traditional clothing enterprises. For example, in the combination of clothing and popular culture, everyone has authorized the world cup, NBA, Disney, and other related authorized clothing. There is also a shoe business founded by e-commerce. Consumers can make use of the basic style and material provided by the shoe online for two customization. They can also share their own designs, participate in the monthly competition organized by the website, and allow other shoe friends to vote for SNS and electricity suppliers.

　　 Spring is the only way to change.

For brand enterprises, the situation of enterprises is also different, but some basic adjustments may be feasible.

Cleaning up high inventory of products

Now the market, whether it is first-line brand, or the domestic two or three line brand, almost all resorted to various discount promotions, some brands even as low as eighty percent off to clean up inventory. Some people think that this is wrong, and think that discount sale is a good solution to solve the problem of inventory failure. A lot of inventory is the result of mistakes in previous years. For large chronic diseases, surgical treatment is necessary. Clothing is not white wine. The longer it takes, the more passive it is. This is also the reason for analysts to praise Lining's willingness to lose money this year and also to recycle the dealers' inventory. It's better to light up and start again.

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　　 Strategic adjustment is inevitable.

In the past few years, enterprises have been relying mainly on bold expansion strategies to reach the scale of today. It should be recognized that the external environment and competitive situation faced by garment enterprises will have great changes compared with the previous years. The environmental foundation and strategic logic of the simple expansion strategy will no longer exist.

From the external demand point of view, until September, the export situation was in a downward trend last year. Until October, the market export situation just improved, and by the end of 2012, the export situation also failed to show a strong rebound. Although the overall situation of the textile industry is improving, the improvement situation and the speed of improvement are at a low level.

The recovery of European and American economies is difficult. Some new shocks are still coming. The accelerated return of manufacturing industry in Britain and the United States and the risk of "Diaoyu Islands" in Sino Japanese textile trade have made the uncertain external market situation shaded. Foreign countries have further set up various barriers to China's textile and clothing, such as the new regulation of chemicals registration, assessment, licensing and restriction (REACH) issued by the European Union. Anyone who has been listed as a high standard of concern (SVHC) is required to report to the EU chemical administration agency that products that have not been notified will not be able to enter the EU market. The regulation adds 8 new products to the original list of 13 highly concerned substances related to textiles, which will form new technical trade measures for the export of China's textile and garment industry.

As mentioned earlier, the domestic market is changing more fiercely, and demand changes, total demand and rising costs are all out of step with the expansion strategy. The domestic people's income structure is very polarized, and the social structure is M type structure, which determines the Z structure of the consumption structure, that is, the transition from extremely expensive to cheap. Many domestic garment enterprises aim at "domestic large middle class consumer groups", and compete in a single way to form a highly homogeneous product market positioning, product design and marketing form. This has become one of the causes of "big inventory". ,

Selection of management strategy and management mode

The implementation of contraction strategy is a must for most brands.

Contraction after expansion is almost the necessary process for enterprise development. 2012 the contraction will continue. Although 2012, clothing enterprises have reduced the speed of opening shops, and some have reduced the number of shops, but they are not enough. They also need to intensify their efforts to focus on major brands and target consumers. In recent years, foreign garment enterprises that are outstanding in performance are focused on the most advantageous products and the core customers. For example, AND1 is one of the most popular basketball brands in the United States in recent years. The brand originated from a brand building project of several students at Walton business school, which was born in 1993. AND1 focuses on basketball shoes and basketball clothes, emphasizing the rebellious and unruly style. AND1 has a clear market position, that is, young people in the city, to stimulate their passion and consumer feelings. In addition, "NewBalance" specializes in running shoes, and the market is positioned for middle-aged consumers who have high requirements for the comfort of shoes.

　 With meticulous management to enhance enterprise efficiency, including channel optimization.

First of all, we must strengthen the support of channels, and pay attention to the upgrading of the capacity of the two or three tier urban channels.

Last year, the sports brand closed 2000~3000 stores and hit the ceiling of channel size. This indicates that the growth mode of garment industry should change from channel and marketing to fine operation. Compared with the international brand of 3~4 yuan per square meter per year, most domestic brands still have less than 1/3 of the international brands. There is still much room for optimizing the commodity mix and improving store efficiency through meticulous management. If we do not grasp this task, 2013 will be more passive. Because foreign brands have begun to sink their channels to the two or three tier cities. According to statistics, the proportion of two or three line cities in ZARA and H&M opened in 2011 was 82.8% and 83.9% respectively. In 2012, these brands also focused on developing the two or three tier city market. After the completion of the first tier cities, the layout of the two or three tier cities went down to the national level, and the competition between international brands and local brands spread from the first tier cities to the two or three tier cities of the main brands of domestic brands. In the 2013 strategy, Nike also expressed the need to focus on small and medium-sized cities in China.

　 Secondly, according to their respective enterprises, handle the proportion and relationship between franchised stores and direct stores.

High inventory reveals that there are a series of problems in the unified management of franchised stores, such as imperfect information system and low logistics efficiency. Some enterprises should extend the proportion of direct outlets to extend the industrial chain and improve their control power, but they should properly handle the interests of franchisees. Daphne's change in the channel, that is, "go to join" strategy is very obvious. This dispute with the franchisee not long ago is not unknown. Daphne also made it clear that "self employment channel is the main direction of future expansion, and no new application will be accepted at this stage." As of last June 30th, Daphne had 4598 Direct stores and 1010 franchised stores, and 411 new outlets in the first half of this year, reducing 45 stores. The proportion of Direct stores increased from 81% at the end of 2011 to 83%.

　　 The most important point is to abandon e-commerce and give up tomorrow.

In 2012, three figures in the retail industry were thrilling: one was double eleven Taobao and Tmall trading volume reached 19 billion 100 million; one was in November 30th, Taobao and Tmall trading volume exceeded 10000 billion; the other was the annual economic figures Ma Yun and Wang Jianlin, who could account for 50% billion yuan of Online retail sales in ten years. As a clothing industry, we should remember a number: 15%. In 2012, the total retail sales in the whole country were about 23 trillion, and the overall retail sales of shoes and clothing accounted for about 10% of the total retail sales of the society, that is, 2 trillion and 300 billion. At present, Internet retail accounts for about 5% of the total retail sales of the whole society, that is, 1 trillion and 150 billion yuan, and the retail of shoes and clothing accounts for 1/3 of the total retail sales of the whole network. According to this calculation, the retail sales of online shoes and clothing are about 345 billion, accounting for about 15% of the total retail sales of footwear.

In 2012, the online clothing city was built up, and the Jingdong mall launched the clothing city. The excellent purchase network launched the clothing channel. Suning and Gome changed from professional electrical business platform to comprehensive electronic business platform, as well as Tmall's Amoy brand and many traditional flagship stores, and clothing sales became an important component of online retail. BELLE international, a leading enterprise, not only has its own powerful e-commerce platform, but also has the brand of BELLE's international brand, and has 5 core flagship stores in Tmall. The average factory price of a well-known brand clothing is only 128 yuan, while the brand clothing displayed in the exclusive store is worth several times. There are many circulation links in domestic enterprises, and the cost of circulation is high. Clothing industry Insiders think deeply that e-commerce will definitely eliminate such enterprises and brands.