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    The Status Quo Of Sports Brand Industry: Performance Decline Across The Board, Channel Reform Has Achieved Initial Success.

    2013/3/13 11:06:00 25

    PEAK Sporting GoodsSports Brand IndustryPEAK Sports Shoes

    < p > according to the observation, in 2012, PEAK sports declined completely on the main performance indicators such as turnover and net profit. Together with Anta's (Sports) sports and 31st degree which had released annual results, it declared that the era of high speed growth of sports brand industry was over.

    < /p >


    < p > however, it is worth noting that in the past year, many sports brands including PEAK and Anta have been operating on the sales channel. The data of PEAK's inventory decline indicate that the effect of channel reform is beginning to show, but for this industry, how to find new growth mode still needs to be actively explored.

    < /p >


    < p > < strong > achievements decline in all lines < /strong > < /p >


    < p > local sports brand PEAK sports released its 2012 annual results in the afternoon of March 11th. Last year, PEAK recorded a turnover of 2 billion 903 million yuan (RMB, the same below), a decrease of about 37.5% compared with 4 billion 647 million yuan in 2011, and the profit attributable to shareholders was 311 million yuan, down 60.1% compared to the same period, while the net profit rate was only 10.7%, falling to the lowest level since 2008.

    PEAK said in its annual report that the decrease in turnover in 2012 was mainly attributable to the inventory adjustment and weak economic conditions of the entire sporting goods industry last year, which had a negative impact on the demand for sporting goods.

    < /p >


    < p > it is understood that in 2012, the average unit selling price of PEAK's a target= "_blank" href= "http://www.91se91.com/" > shoes "/a" products and a target= "_blank" href= "_blank" > clothing > products was 89.3 yuan and 60 yuan, almost the same as that in 2011. But in terms of sales volume, the sales volume of these two products in 2012 was only 15 million 100 thousand and 24 million 700 thousand, respectively, compared with 22 million 800 thousand and 41 million 500 thousand in 2011, respectively, by 33.8% and 40.5% respectively.

    In this regard, PEAK believes that compared with 2011, the average unit selling price of footwear and clothing products did not change significantly in 2012. Therefore, the reduction in turnover in 2012 was mainly attributable to the decline in sales volume of group products.

    < /p >


    < p > for sports brand performance in 2012, the industry has long been expected, but in the light of several major brands, the rate of decline is still unexpected.

    < /p >


    < p > Anta sports data, which released its annual results, showed that Anta's turnover and net profit in 2012 were only 7 billion 622 million yuan and 1 billion 358 million yuan, down 14.4% and 21.5% compared with 2011.

    The net profit last year was only 715 million yuan, down 38% from the same period last year.

    Another noteworthy data is that in 2012, the average turnover days of PEAK, Anta and 331 degrees increased from 49 days, 38 days and 40 days in 2011 to 80, 51 and 56 days last year.

    Combined sales decline data, this reflects the lack of market demand leading to the whole industry inventory pressure is intensifying.

    < /p >


    < p > < strong > channel reform has achieved initial results < /strong > < /p >


    < p > 2012, "Guan Dian" has become one of the key words in sports brand industry.

    < /p >


    < p > PEAK CEO Xu Zhihua told reporters that the number of PEAK stores will be reduced to around 6500 by the end of 2012, while PEAK's data confirm this information.

    Data show that as of December 31, 2012, PEAK's total number of stores was only 6483, compared with 7806 at the end of 2011, a decrease of more than 1300.

    < /p >


    < p > according to the information gained from PEAK, PEAK focused on the adjustment and optimization of the sales network in 2012, and its final performance was reduced number of stores.

    However, this annual report also revealed that the number of PEAK distributors increased from 50 in 2011 to 9 in 2012, and 59 in 2012.

    < /p >


    < p > PEAK said in its annual report that in 2012 the company closed its small and inefficient sales outlets and opened more large and efficient sales outlets.

    At the same time, we should actively adjust and increase the number of distributors, encourage existing distributors to open more PEAK authorized retail outlets, and through screening, directly upgrade some eligible retailers to distributors.

    < /p >


    < p > besides PEAK, Anta also has some actions in sales channels.

    Data show that as of 2012, the number of Anta's professional sporting goods shops and sports life shops has decreased from 8665 in 2011 to 8075.

    < /p >


    Similar to PEAK, Anta adjusted Anta's sales channels last year by strictly controlling new stores opening, closing inefficient stores and optimizing the image of existing stores. At the same time, Anta has opened more factory shops and discount stores in the country for its sake of stock taking.

    < /p >


    < p > in the course of this round of channel reform, PEAK is undoubtedly the most representative brand from the point of adjustment, and the effectiveness of this initiative has begun to appear.

    Data show that PEAK's inventory dropped from 530 million yuan in the middle of last year (up to June 30, 2012) to 390 million yuan in December 31, 2012, a decrease of 26.9%.

    < /p >


    Compared with that of P, the amount of stock in the channel adjustment is still up to 460 million yuan at the end of last year, up 9 million 500 thousand yuan in 2011.

    < /p >


    < p > < strong > seek new growth mode < /strong > /p >


    < p > 2006, the number of stores of Anta and Lining was only 4279 and 4108, and by 2009, the number of two brand stores has broken to 7249 and 6591 respectively.

    Statistics show that as of 2010, the number of stores including brands and XTEP, PEAK, PEAK and other brands has exceeded 7000.

    Sports brands have witnessed a great explosion in the past 5 years.

    < /p >


    "P", a well-known footwear and clothing industry expert, Ma Gang has said that "people who get the channel get the world", and the continuous expansion of sales channels has made the sales volume of each brand straight up, reflecting a continuous growth trend in its turnover and net profit.

    < /p >


    < p > but from the 2012 situation, it is easy to analyze that the reduction of the scale of stores leads to a fall in sales volume, which in turn leads to a chain reaction to the profits and profitability of enterprises. The era of rapid growth of sports brands relying on channel expansion is gone forever.

    < /p >


    < p > an industry brand management veteran told reporters that after extensive growth, sports brand should turn more attention to fine operation, including product, channel, marketing and other aspects of refinement. For channels, sports brand's attention should pay more attention to the growth of single shop profitability, in the case of channel size growth bottlenecks, through the improvement of single shop quality to compensate for the lack of quantity.

    < /p >


    < p > PEAK public relations director Liu Xiang revealed the future plan of PEAK. "Most mainstream brands are pursuing the benefit of single store. PEAK is the same. Besides, on the basis of basketball, PEAK will also enrich other categories, such as < a href=" http:// www.91se91.com/news/index_x.asp "> running series < /a > women's series, etc., through the continuous enrichment and growth of category to achieve performance improvement.

    < /p >

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