Anta Ding Shizhong: Sports Brands Are Fighting For Second Wars.
< p > at this moment, Chinese sports brand dealers are going through extremely difficult years. High inventory and order slipped into a sharp sword hanging on their heads, which may fall at any time. < /p >
< p style= "text-align: center" > img border= "0" alt= "align=" center "src=" /uploadimages/201303/18/20130318124432_sj.JPG "/" < < > >
The 2012 annual report released by Anta group, led by Ding Shizhong P, showed that the net profit and operating income of the company were 1 billion 359 million yuan and 7 billion 623 million yuan respectively, down 21.5% and 14.4% respectively from the same period last year. This is the first time that the net profit has slipped since its listing in Hongkong in 2007. < /p >
< p > before that, from 2008 to 2011, Anta's turnover increased from 4 billion 627 million yuan to 8 billion 904 million yuan, and net profit increased from 895 million yuan to 1 billion 730 million yuan. < /p >
By the chance of the 2008 Olympic Games in Beijing (franchised stores), China's sports brand has been expanding wildly. In order to compete with international brands for market space, P has expanded rapidly in the short span of a few years, achieved rapid growth and completed the upgrading of its capital level by listing in Hongkong. < /p >
Less than P, the shops and shopping centers in all parts of the country, and even small cities with limited consumption capacity, can see their shops everywhere. < /p >
Behind the rapid expansion of P, however, is oversupply, backlog and management lag. In 2012, these hidden problems began to concentrate on fermentation. < /p >
< p > according to statistics, in 2012, Lining, Anta, 361 degree, XTEP, PEAK and China had the total stock of six brands, up to 37. 2 billion 100 million yuan. "The first thing to do to survive and maintain market competitiveness is to get rid of the burden. Hou Lidong, who was once the brand director of PEAK sports, said. < /p >
"P" started last year, and the major brands announced the closure: Lining closed 1200 stores in the first half of 2012, closed 1067 in the first three quarters of the year, and closed 569 stores in China in the first half of 2012. XTEP has closed more than 200 so far, with 361 at least, and 96 at the same time. < /p >
< p > Anta has not been spared. In 2012, its series of shops were 8075, compared with 2011 less than 590. The annual report shows that the company expects the total number of shops to be 7500~7600 this year, which means that it will continue to shut down 475~575 stores. < /p >
"P >" we must carry on the commercial spanformation, one of the most important means is the shop upgrading, the end of the extensive mode of opening shop. Before it was a conquering territory, and now it should be the result management after fighting, which is market integration. "Ding Shizhong said," if anyone fails in the second war, it means that he will always be eliminated. < < /p >.
< p > "wholesale" era ends < /p >.
< p > in Ding Shizhong's view, behind this wave of shop closing, it means the end of the era of "wholesale sale" of sports brand, which is also a change of business mode. "Wholesale" means the traditional business mode, that is, brand operators do not control the retail channel, and sales performance depends on agents. In this mode, they are often sold out of products, mediocre products are backlog and inventory management is difficult. < /p >
< p > Ding Shizhong thinks that the biggest disadvantage of this "brand + wholesale" mode is the lack of information. "In the past, our practice was to provide only a set of standards for goods, and the rest to wholesalers and franchisees. < < /p >.
< p > for brands, as long as they go wholesale, sales have already been formed, but they can not feel the changes in the market and retail terminals. < /p >
< p > this mode has been brilliant. Taking China's trend as an example, in the 2009 and 2010 years, its net profit has exceeded 1 billion 400 million yuan, and the average profit per employee has reached 1 million 500 thousand yuan. < /p >
< p > in fact, when China's economic development slowed down in 2009, the sporting goods industry problem already existed, but the Beijing Olympic Games delayed the exposure of the problem. < /p >
< p > according to the research, the Olympic Games can generally stimulate the sports consumption of a few people of the host country. Therefore, according to the usual practice, Adidas calculates that the growth rate of the Beijing Olympic Games in mainland China will reach about 40% in that year. < /p >
< p > but this estimate is too optimistic. After Adidas and Nike rushed to the first, second industry, stocks began to backlog. < /p >
Less than P, the more influential brands are local brands. Adidas and Nike have a discount, second tier international brands and sales of Chinese brands are even worse. < /p >
< p > the way to resolve the crisis is to change the traditional channel mode of "brand + wholesale", and draw on the business model of "brand + retailers" of clothing retail brand UNIQLO. < /p >
"P >" in the 10 years of Japan's economic downturn, UNIQLO came to the fore. It broke the situation that Japanese integrated commerce companies control all aspects of the garment industry, and vertically integrated all aspects of the product chain. "Hou Lidong said. < /p >
< p > Zhang Bingliang, founder of Shanghai lion consulting, believes that ZARA, H&M, UNIQLO and Muji are popular with Chinese consumers because the supply chain system is short and the circulation of commodities is fast. Every week, new products can be seen on the market. < /p >
< p > "more emphasis should be placed on Retailing in future management. Who can manage the store better in future market competition, and who will survive. "Ding Shizhong said," for this reason, we put forward a new viewpoint: only one party B is the consumer. < < /p >.
< p > multi brand breakout > /p >
< p > "now Anta needs to develop, not just an independent brand. "Ding Shizhong said this is the second front that Anta is trying to break through. < /p >
Less than P, Anta's multi brand road actually started 4 years ago to acquire Italy brand Fila China Trademark and operation business. < /p >
After the 2008 P Olympic Games in Beijing, the Chinese people knew more clearly about the two concepts of sports and sports. Before that, local brands almost used the concept of "Universal Sports" to guide consumers. Sportswear was sold as a casual fashion product. < /p >
< p > a typical example is that outdoor activities such as climbing, cross-country, mountaineering, skiing and so on have become the lifestyle of urban white-collar workers. According to public data, over the past 10 years, China's outdoor products market has increased by more than 40% per year, and has formed a market scale of more than ten billion yuan. < /p >
< p > this allows Ding Shizhong to see a "blue sea" --2013 --2013 outdoor sports series is expected to be released and is expected to reverse the trend. < /p >
< p > other Chinese brands are also marking the outdoor sports market. According to an industry insider in Quanzhou, Fujian, 361 degree is planning to buy a bicycle manufacturer to build a high-end bicycle brand, but the news has not been confirmed by 361 degrees. < /p >
< p > sports brand is keen on outdoor sports market, the most direct driving force is outdoor unit price is significantly higher than the average level of sports goods. However, consumers of outdoor sports products are relatively rational. So far, foreign brands are still dominant in this market. < /p >
< p > this is obviously a great challenge for Anta. < /p >
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