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The Ups And Downs Of Local Sports Brands: The Reform Of Total Performance Decline

2013/3/14 22:22:00 13

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Footwear Industry Shoes And Footwear Enterprises

according to the reporter's 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.

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.

performance decline across the board

The annual performance of PEAK sports, released yesterday (March 11th), showed that PEAK recorded a turnover of 2 billion 903 million yuan (RMB, the same below) last year (March 11th), a decrease of about 37.5% compared with 4 billion 647 million yuan in 2011, and a profit of 311 million yuan for shareholders, a decrease of 60.1% in the same ratio, and a net profit margin of 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.

reporters found that the average selling price of PEAK footwear products and clothing products in 2012 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.

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.

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.

channel reform has achieved initial results

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

PEAK CEO Xu Zhihua told reporters that the number of PEAK stores will be reduced to around 6500 by the end of 2012, and the data disclosed by PEAK yesterday confirmed 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.

according to the information that PEAK learned from reporters, PEAK focused on the adjustment and optimization of 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.

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.

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.

reporter understands that similar to PEAK, Anta adjusted 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 consideration of stock.

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%.

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.

seek new growth mode

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", 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.

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.

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.

Liu Xiang, director of public relations, PEAK, yesterday, also revealed the intention of PEAK in the interview with the daily economic news reporter yesterday. "Most mainstream brands are pursuing the benefits of single stores, and PEAK is the same. Besides, on the basis of basketball, PEAK will also enrich other categories, such as running series, women's series, and so on, through the continuous enrichment and growth of categories to achieve performance improvement."