Stock Is Triggering Big Reshuffle In Garment Industry

< p > January 28, 2013, < a href= "http://sjfzxm.com/news/index_f.asp" > Lining < /a > Limited announced the announcement of the special meeting of shareholders. It plans to vote on the company's public offering of HK $1 billion 847 million 800 thousand and no more than HK $1 billion 868 million 600 thousand convertible securities.

This is also the second largest investment in Li Ning Co since January 19, 2012 when TPG and GIC bought shares of 750 million yuan convertible bonds.

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More than a month ago, Li Ning Co has just announced that the board has approved the "channel revival plan" to fully implement the expansion plan of its reform plan. The plan expects that the company will focus on supporting inventory clearance, repurchase and integration of sales channels by 1 billion 400 million ~18 billion yuan, P.

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The announcement of sports brand listed companies in many industries also shows that the domestic sports brand manufacturers who rely on store expansion in the past few years and lead to huge inventory and relatively neglect of R & D investment and lead to serious homogenization of products are entering the critical moment of "shuffle" in the industry. P

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< p > < strong > integration precursor < /strong > < /p >

< p > > a href= "http://sjfzxm.com/news/index_c.asp" > sports goods industry < /a > industry concentration will be higher and higher in the next 3~5 years, and the development of industry has already entered this stage.

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< p > as early as March 2010, as the earnings of companies were released in succession, the reporter has made a judgement that according to the division of brand premium capability and the scale of revenue scale, domestic sporting goods companies can be roughly divided into "Three Worlds": Nike China, Li Ning Co, Adidas China and Anta are among the "first group"; China trend, XTEP holding, 361 international and PEAK company, Hongxing Erke belong to the "second group"; other companies are "third groups".

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< p > by 2011, the market correction of the sporting goods industry was not an isolated phenomenon, but a universal behavior.

According to the 2011 earnings report issued by various companies, the "Jinjiang Department" sporting goods company has an increase of more than 25% in inventory. Many companies have raised early warning about the growth of revenue in 2012. The sales volume of Li Ning Co and China also fell by -5.8% and -35.7% respectively.

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At P, Jordan, the marketing director of the sports Limited by Share Ltd (hereinafter referred to as "Jordan sports"), believed that the industry concentration of the sporting goods industry in the next 3~5 years will be higher and higher, and the development of the industry has already entered this stage.

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< p > Huang Tao's judgment is that when an industry reaches maturity, the top three and top five enterprises will occupy more than 60% of the total market revenue.

The current annual sales of Chinese sports brands are about 100 billion yuan, while in 2011, Nike's sales in China were about 12 billion yuan, Adidas China was about 10 billion yuan, Lining and Anta were about 8 billion 900 million yuan, and 4 companies in the "first group" already occupied about 40% of the industry. Considering the strong brand premium capability of the camp, the further improvement of the industry concentration in the future is a probability event.

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< p > strong > "fashion" left behind < /strong > /p >

< p > the inventory of sports brands is really troublesome.

On the one hand, we all adopted the wholesale mode of futures, on the other hand, because of the functional requirements and material requirements, it is impossible to reduce the supply chain cycle to 25 days.

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< p > a prophecy.

Throughout the 2012, there was hardly any good news from sports brands.

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< p > Lining announced that in 2012, the company will record a high deficit; Anta said that the total annual orders in 2012 will be calculated at wholesale prices (% at the wholesale price) compared to the high percentage of units in the same period. As of June 30, 2012, China's trend achieved a profit of 832 million yuan, down 29.43% compared with the same period last year, with a profit of only 53 million yuan.

After several years of decline, China's revenue in 2012 is likely to return to Hong Kong 5 years ago.

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< p > December 10, 2012, 0953.HK announced that the company expects to have a "big loss" in 2012. Meck's 2012 report shows that the company's revenue decreased by 61.7% to 155 million yuan, and the gross profit margin fell 26.7% to 27.2%.

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< p > when explaining the causes of losses, Meck, which only landed at the HKEx in February 2010, said that in June 14, 2012, the company had announced a stock repurchase of 91 million 100 thousand yuan to distributors and retailers. After that, the company sold the goods through third party export companies to overseas customers for about 25 million 700 thousand yuan, and the selling price was only 28.21% of the repurchase price, so a stock repurchase was a loss of about 65 million 400 thousand yuan.

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< p > it is not hard to see that on the one hand, revenues have fallen sharply. On the other hand, terminal sales are still hard to say. The MGM international, which is not big, will encounter the most severe "winter" in the sporting goods market.

Although the management of the company indicated that it would make losses through the "continuous enhancement of product R & D capability and product diversification", "continue to implement the integration plan and inventory repurchase plan" with distributors, but when Nike and other industry giants announced that the inventory was rising, Meck's 2013 survival pressure could be imagined.

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< p > "the inventory of sports brand is really very troublesome.

On the one hand, before all of us had adopted the wholesale way of futures, the order would be six months ahead of schedule. Objectively, there was a higher sales expectation. Such a high expectation is not big for a year or two, but it has been accumulated for many years, and the disease is coming down like a mountain.

Huang Tao said, "on the other hand, sports brand is hard to get rid of the futures sales in the short term. Because of the functional requirements and material requirements, it is impossible to reduce the supply chain cycle to 25 days. There is a natural barrier to learn from the fast turnover mode of fashion brands such as ZARA."

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< p > indeed, in this round of industry callback and stock going war, the past trend of overemphasizing the Chinese trend of "fashion sports" brand building and the international decline of Meck are most worrying. The natural contradiction between "fashion" positioning and futures operation is the profound internal cause.

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< p > < strong > channel "make up lessons" < /strong > < /p >

< p > inventory is a common issue of sports goods and even < a target= "_blank" href= "http://www.91se91.com/" > clothing /a > industry. Finally, we need to solve the problem of information construction of terminal channel, besides the need to grasp consumer demand, product design and aesthetics, and grasp the trend of consumption.

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"P", of course, the trend of China has long discovered this problem.

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By the end of 2011, China's trend was to take the lead in completing the stock of the repurchase tag price of 1 billion 450 million yuan in the industry, and remarketing it through factory shops and e-commerce.

By the end of 2011, the number of stores in China decreased by 16.8% compared to the same period last year, to 3119, down 632 from 3751 in 2010.

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< p > 2012, Lining, Anta and other domestic industry leaders also began to optimize the layout of stores, constrain the size of distributors, and establish factory discount stores.

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< p > "the era of sports brand relying on more stores to get sales growth has ended. This development mode is not sustainable."

Huang Tao said that the single sports brand probably owns 5000~6000 shops in the whole country. If the brand extension shops including children's clothing and so on are included, the general 6000~7000 stores are enough, and at present many sports brands have opened about 8000 stores, which have exceeded the breakeven point.

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< p > under the continuous promotion of store rentals and manpower costs, the single store performance of sports brand distributors and terminal channel operators has declined, and at the same time, they are also facing the impact of discount stores and e-commerce, leading to the more difficult operation of physical retail terminals.

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< p > "inventory is a commonplace problem in sports goods and even clothing industry. In the end, it is necessary to solve the problem of information construction in terminal channels, in addition to grasping the needs of consumers, designing and aesthetic in advance, and grasping the trend of consumption."

Xue Xu, a marketing professor at Peking University, said.

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Zhang Qing, founder of sports consulting firm, P, also recognizes this.

"As early as 2000, the Li Ning Co had already considered ERP, and made further plans in 2005, but the good performance growth over the next few years has made this plan run aground."

Zhang Qing said that it is urgent for sports brand dealers to grasp the terminal retail inventory and to build data mining system for consumer preferences. Everyone needs to make up for missed lessons.

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