PEAK Channel Reform Has Led To A Sharp Reduction In Store Numbers, Changing The Order Mode To Reduce Inventory.

< p > in the past year, < a href= "http://sjfzxm.com/news/index_x.asp" > PEAK < /a > sports, with an average daily closing of more than 3 stores, has created an embarrassing record in the domestic sports industry.

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< p > according to the 2012 performance report released by PEAK sports, the number of retail outlets decreased from 7806 at the end of 2011 to 6483 at the end of 2012, a net decrease of 1323.

In addition, PEAK's turnover decreased by 37.5% to 2 billion 903 million yuan in 2012, and net profit dropped by 60.1% to 311 million yuan.

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< p > > a href= "http://sjfzxm.com/news/index_c.asp" > sports goods industry < /a > is now facing a "deep adjustment period", while PEAK's main data fall at the forefront of the industry.

PEAK explained that its reform over the past few months in the channel and order system has resulted in a sharp decline in company performance and number of stores, but it is hoped that the company can get rid of this industrial crisis at a faster pace by adjusting and optimizing it as soon as possible.

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< p > < strong > the number of stores decreased suddenly due to channel reform < /strong > < /p >

< p > before PEAK, Anta (02020.HK), 361 degree (01361.HK) and so on have also released 2012 results.

Among them, Anta's turnover declined by 14.4% to 7 billion 623 million yuan, and net profit fell 21.5% to 1 billion 359 million yuan.

The 361 degree performance was equally bleak, with sales of 4 billion 950 million yuan in 2012, down 11% from the same period last year, and net profit of 707 million yuan, down 37.6% from the same period last year.

Among them, PEAK's decline in operational data, such as performance, profit and closing numbers, ranks among the forefront of the industry.

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< p > "the decline of sports brand in reality may be even more pessimistic than the data released in its earnings report."

Zhang Bingliang, general manager of Shanghai lion Consulting Co. Ltd., said that the published industry data showed that in the first half of 2012, Lining had closed 1200 stores, and China's trend was close to 1000 stores, while the number of Anta stores in 2012 decreased by 590. It is expected that 475~575 stores will continue to be reduced in 2013.

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Less than P, behind all the major brand operators' close shop actions is the reason for the decrease in the entire industry demand and the saturation of the number of stores.

CEO Cheung Ching, Beijing key sports Consulting Co. Ltd., said that before and after the Beijing Olympics in 2008, the major brands including Nike and Adi had anticipated the market demand and kept issuing new stores.

Another part of the domestic sports brands in order to impact the listing, get a higher price earnings ratio, and at the expense of the blind expansion shop.

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< p > with the cooling of sporting goods industry in recent years, a large number of poor performance stores have become hot potatoes in the hands of major brands.

In some industry circles, PEAK has closed more than 1300 stores in 2012, which is far faster than domestic counterparts.

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Liu Xiang, deputy director of PEAK public relations, denied the above statement to P.

Liu Xiang said that PEAK was an early prediction of the industry's "cooling" trend in the industry. Therefore, in the second half of 2011, the company has planned to optimize the channel, adjust some store images, lots and performance stores that do not meet the company's requirements.

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At the same time, PEAK started the flat management reform of the channel management structure from 2012. Through screening, some qualified retailers can be directly promoted to p distributors.

"For example, dealers in Taizhou, Zhejiang, were formerly distributors in Hangzhou, but now they are directly responsible for the company."

Liu Xiang said the move is aimed at reducing communication costs between distributors and companies and improving terminal reaction speed.

Before some large distributors, the scope of control is smaller, management can be more elaborate, and the efficiency and output of stores are bigger than before.

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< p > according to PEAK, the number of PEAK's distributors is growing behind the heavily closed stores, increasing from 50 in 2011 to 59 in 2012. It is expected that the number of distributors will increase to 70 in 2013.

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< p > < strong > changing the order mode to reduce inventory < /strong > /p >

< p > Liu Xiang said that in the embarrassing 2012 earnings report of PEAK, there were actually two data that satisfied the management of the company.

First, the sales volume of PEAK's international market reached 388 million yuan, the proportion of total turnover increased to 13.4%, and the proportion of overseas income increased for 3 consecutive years. Two, the inventory dropped from 530 million yuan in the middle of 2012 to 390 million yuan at the end of 2012, a 26.9% decrease.

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< p > > a href= "http://sjfzxm.com/news/index_s.asp" > inventory < /a > is another big burden on all sports brands.

In the newly announced Q2 performance, the industry leader Nike's turnover in China dropped by 11%, making the international brand, which is far ahead in the Chinese market, had to plan to open 40 to 50 factory stores in 2013 to clean up its stock.

Adidas, another big international brand, is also cutting stock by way of opening up new stores in the new market.

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< p > industry sources also say that some brands continue to pursue the past craziness and shop strategy in pursuit of better sales data, which not only causes the market supply exceeding demand, but also causes the entire sporting goods industry to fall into the "price war" whirlpool.

The ultra low discount strategy launched by some serious inventory enterprises has also greatly hurt the sustainable development of the company.

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< p > compared with Nike and Adidas, Anta and PEAK adopt the measures of self production capacity to regulate production rhythm and so on to clean up stock.

Liu Xiang said that unlike the international brands of "light assets", PEAK and Anta had their own sporting goods factories, which allowed them to have more room for maneuver when the industry growth rate declined.

If there is a change in the market, Anta and distributors adjust the number of orders that have not yet been delivered to reduce the potential stock.

PEAK also began to adjust orders, reduce market supply, optimize channels and other strategies since 2012, and has achieved certain results.

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PEAK P is gradually changing the futures system adopted by various brands in the past and increasing its reliance on the "fill in" mode.

The so-called "fill in list", that is, if the distributor expects to sell 1 million pieces less than a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > within six months, it can place 700 thousand orders first, and the remaining 300 thousand parts will be made up according to market conditions.

Liu Xiang said that such measures can prevent dealers from misjudging the industry situation and increasing the burden of inventory.

The premise of achieving this goal is that branding firms must have their own factories.

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< p > "in the past few months, the company has adjusted the ratio of futures orders to spot orders from 9 to 1 to 7: 3."

At the investor meeting in Hongkong recently, PEAK CEO Xu Zhihua said that the futures orders and supplement rates of the order will continue to decline after the distributors are fully adapted to the new order pattern.

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