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Nike Infection "Inventory Plague" Plus Large Inventory Impact On Domestic Brands

2013/3/9 8:43:00 87

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Nike Clothing Inventory Garment Industry

in the two consecutive quarter of growth inflection point, < a href= "http://sjfzxm.com/news/index_x.asp" > Nike < /a > also began to increase inventory clean-up efforts.

In March 4th, it was reported that Nike plans to open 40 to 50 factory stores this year, which is far more than the past. At the same time, the new factory stores will expand from the first line to the two or three line market, and the discount will be maintained at 3 to 60 percent off.

Nike's global earnings report data show that since the third quarter of fiscal year 2012, the growth of orders in Nike China has slowed down significantly, or even dropped for two consecutive quarters. The industry believes that cleaning up inventory has become a problem of the whole industry, and Nike's low inventory clearance will lead to further delay in the clearance of domestic sports brand stocks.

force factory shop /p >

although the factory store has already existed, but in the face of heavy inventory pressure, the factory store seems to have become the "life-saving straw" of the major sports brands cleaning up < a href= "http://sjfzxm.com/news/index_s.asp" > inventory < /a >.

according to Lining's previous announcement, as of June 30, 2012, the number of factory shops has reached 271, and indicated that it will continue to expand the scale of factory stores. Another local sports brand Anta also said that in response to the high inventory risk of retail channels, the company has taken a number of quick response measures, including the establishment of factory shops and discount stores in various places to help clean up the inventory after the season.

as the leader of sporting goods, Nike seems to be unable to avoid the custom in this inventory clearance.

According to Nike insiders, China will open 40-50 self run factory stores this year, which will expand from the first tier to the two or three tier cities.

according to the information disclosed in Nike's 2012 fiscal year announcement, as of May 31, 2012, there were 156 Nike store factory stores in the US market, including the international market, including the Chinese market, with 308 factory outlets.

unlike the US market, Nike's "factory store" in China has some agents running its own stores besides its own business. In Beijing, for example, there are about a dozen factory shops, but in addition to the shops in Malian road Hutong and Qingnian Road, which are directly owned by Nike, others are mainly agents' stores.

this means that if Nike opened 40-50 factory stores in China this year and the rumors of self owned stores came true, then the scale of Nike in Chinese factories and shops will be far greater than before. After all, there are only more than 300 in the global market (excluding the United States).

However, for the specific size and shop plan of Nike China factory, the reporter has repeatedly confirmed that Nike China has not responded.

Xiong Xiaokun, a light industry researcher at CIC, believes that although the scale of investment in Nike's Chinese factory stores is unknown, its inventory pressure is extremely huge. "Nike has joined the army to clean up inventory", and clearing inventory through various channels will become its current focus.

P > strong > weak Chinese market /p >

"P" in China's "inventory plague", Nike is also injured, and even began to drag the global performance.

Nike's 2013 quarter fiscal year second quarter financial report shows that China's revenue fell for the first time, up to 11%, reaching 577 million US dollars, while the first half of the 2013 fiscal year, China's revenue was 1 billion 149 million US dollars, down 2% over the same period.

In 2012, Nike and China were weak in the global market, while other markets were growing.

Xiong Xiaokun said that in recent years, horse racing and expansion is the main competitive means of many sports brands, and Nike is no exception.

On this basis, China's sports "a" target= "_blank" href= "http://www.91se91.com/" > clothing < /a > industry is gradually showing the current situation of oversupply. Although Nike has strong advantages in brand and distribution capabilities, it still can not get rid of the high inventory problem.

"China is still the focus of our inventory management". At the second quarter investor meeting, Nike chief financial officer Don Blair said that the company is working to reduce inventory problems in China, mainly by increasing discount rates and reducing futures orders.

Nike's public data show that China's a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > clothing and other sporting goods futures orders have declined for the two consecutive quarter, with the futures orders falling 5% in the first quarter of 2013, and 6% in the second quarter compared with the same period in the second quarter.

facing the downward trend of performance, the rumors of factory shops undoubtedly increased speculation on Nike inventory clearance.

Shao Ligang, general manager of consulting and management of "P > nine, believes that Nike can increase factory stores and sink channels. There may be two purposes and one is to solve the inventory problem. After all, the stock of Nike has also increased in the market of sports goods, and the other purpose may be to test the response of two or three line channels. Currently, the two or three line market is mainly dominated by domestic sports brands.

At present, Nike does not have large-scale action. Such a signal may still be a test.

he also said that if Nike implements the channel sink, especially if the price can go down, the impact on domestic sports brand is quite large.

He said that in the past two years, Nike and Adi products of Made in China began to decrease. Both companies gradually turned to overseas markets, and their cost advantages were more obvious than those of domestic sports brands. However, the implementation of low price would affect Nike's first-line sales and brand, so Nike might take the product differentiation route.

however, Zhang Qingze CEO, a key sports consultancy company, believes that Nike's main purpose is to solve inventory problems rather than sink channels in the two or three line cities.

"in fact, Nike has already entered the two or three line market very early, so it can not be said that the channel is sinking."

Zhang Qing said that in the first tier cities, Nike already has some factory stores, but the scale is not large, mainly because of the large discount of factory shops and the damage to brand influence. After all, the first tier cities are different from consumers in the two or three tier cities, and the latter are relatively sensitive to prices. "In the two or three line cities, the factory stores provide a solution to the inventory problem."

impact on domestic brands /p >

for Nike's adjustment, the domestic sports brand may be "very hurt".

"Nike has a strong brand advantage. If you take a low price strategy, it will affect the progress of local brands' inventory clearance."

Zhang Qing said that some second tier brands may face a survival crisis.

it is understood that, due to the fierce competition in the brand, overcapacity in the industry and serious accumulation of channel stocks, including the six major sports brands such as Lining and Anta, the channel and business models have been adjusted. In 2012, the major brands had different sizes.

At the same time, all local brands began to adopt flexible procurement mode instead of blindly pursuing scale growth, actively adjusting the order size, Abolishing Some unproductive orders, strengthening replenishment, strengthening cooperation with channel and strengthening terminal retail capacity, thus reducing the pressure of P channel inventory.

under this circumstance, the order data of all local brands have declined in different ranges.

In addition to the fact that Lining declined to publish the data due to the decline in orders, Anta's orders for orders in the third quarter of 2013 were down by 10%-20%. XTEP's orders in the second quarter will drop by 15%-20%, 31st degree 2013, the order in spring / summer will drop by 23%, and PEAK's order will drop 20%-30% in the second quarter.

but on the other hand, every local brand takes measures to clean up inventory, while Nike and other foreign brands are also overweight.

In the afternoon of March 4th (P), a reporter visited Beijing Malian road Nike factory store (renamed the seasonal discount shop). It was found that a Nike men's clothing could reach up to 199 yuan while the sports shoes were as low as 249 yuan.

At the same time, factory stores are promoting sales activities, "full court shoes and bags 2 pieces 15% off, three pieces 20 percent off."

a shop assistant told reporters that the goods had already been hit 50 percent off, and the discount activity was equivalent to a discount.

When asked about the discounts between factory stores and franchised stores, the shop assistant said that the discount products of the stores were relatively small, and the discount was not so great.

according to industry sources, at present, apart from Lining and Anta, other brands are mainly in cities below two or three lines. At present, there is fierce competition in the first tier market. If Nike and other brand channels sink, and then strengthen the price advantage, it will impact domestic brands.

Shao Ligang believes that after more than ten years of rapid development, the domestic sports brand has reached an inflection point of adjustment, and the economic situation and consumption downturn are only accelerating the exposure of the problem.

"If you do not adjust, do not change the mode of pressing cargo, just temporarily clean up inventory, and back inventory will still come up."