High Inventory Has Become A Common Problem Of Sports Brands In China.

< p > from the published annual reports, high storage has become a common problem of sports brands in China.

The total inventory of the six sports brand enterprises is as high as 3 billion 327 million yuan.

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< p > after experiencing problems such as closing shop tide, discount and tide, high storage and so on, the performance of all major sports brands in 2012 has been reported.

According to the annual report released on a daily basis, the performance of Anta (franchised store) sports, PEAK (exclusive store) sports, XTEP international, 31st degree and Lining in 2012 in the five major local sports brand manufacturers declined.

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< p > net profit decreased < /p >

< p > February 25th, Anta sports first released the 2012 annual report. The report shows that in 2012, the company's operating income was 7 billion 623 million yuan, down 14.4% compared to the same period last year. Net profit was 1 billion 359 million yuan, down 21.5% compared with the same period last year, and gross profit margin also dropped 4.3 percentage points to 38%.

This is the first decline in Anta sports since its listing in 2007.

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< p > according to the annual report released by PEAK sports, in 2012, PEAK's turnover was 2 billion 903 million yuan, a decrease of about 37.5% compared with 4 billion 647 million yuan in 2011, and net profit of 311 million yuan, down 60.1% from the same period last year.

In addition, PEAK also announced that the company's net profit growth rate in 2012 was only 10.7%, down to the lowest level since 2008.

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The annual report of < p > shows that in 2012, the sales volume of the company reached 4 billion 950 million yuan, down 11% compared to the same period last year, and net profit was 715 million yuan, down 37% from the same period last year.

The performance decline was mainly due to the oversupply of a target= "_blank" href= "http://www.91se91.com/" > clothing "/a" over the past year, and the average selling price and gross margin of products were dragged down. The competition in the industry was fierce and the business environment was difficult.

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< p > annual report of XTEP International announced that in 2012, the company realized a total income of 5 billion 550 million yuan, and equity holders should account for 810 million yuan in profit, a decrease of 156 million yuan over the previous year's 966 million yuan.

In addition, the company also announced a gross margin of 40.7%.

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< p > Lining reported net loss of 1 billion 979 million yuan in 2012, and the group's income was 6 billion 739 million yuan, down 24.5% from the same period last year; gross margin was 2 billion 550 million yuan, a decrease of 36.9% over the same period last year.

Lining, founder and executive chairman of Li Ning Co, explained to reporters that losses were partly due to reduced wholesale sales, accounts receivable and inventory provision, implementation of change plans and related costs of channel rehabilitation plans and other restructuring costs.

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< p > in the six major Chinese sports brands published in the annual report, China's trend is the only company that has a net profit rise.

However, the net profit of the company rose, but sales fell by 35.4% to 1 billion 772 million yuan.

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< p > annual report shows that China's sales volume was 1 billion 772 million yuan in 2012, and its operating profit was 69 million yuan, down 30.3% compared to the same period last year. Net profit was 177 million yuan, up 73.5% over the same period last year.

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< p > Xiong Xiaokun, a light industry researcher at CIC, told reporters: "the decline of the performance of several major sports brands in China is caused by the internal and external factors. On the one hand, the external economic environment is not good enough to lead to limited market demand. The global economic downturn and the slowdown of domestic economic growth can be a double blow to domestic sports brands. On the other hand, the blind development of sports brands has resulted in self eating consequences. The major brands do not accurately estimate the market capacity, blindly expand their stores, expand their capacity, and finally fall into the high inventory and low profit level.

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< p > > over 4000 stores, < /p >

< p > through the expansion of several years, the number of stores in the six major sports brands in China has risen sharply. However, after the market demand has shrunk, the hidden worries of expansion have emerged. What follows is a wave of closing off of the six major sports Brand Company.

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< p > Anta annual report shows that there were 8075 Anta stores last year, a decrease of 590 compared with 2011.

This year, the total number of Anta stores (including sports life) is estimated to be 7500-7600, which means that Anta will continue to close 475-575 stores this year.

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< p > in addition, the number of retail outlets in 2012 was 6483, compared with 7806 retail outlets at the end of 2011, a net decrease of 1323 in 2012.

Li Ning Co also mentioned in its annual report yesterday that the total number of stores in 2012 amounted to 6434, representing a net decrease of 1821 compared with 2011.

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< p > for the number of stores, 360 degrees in the annual report, the number of retail outlets is 8082, and the number of new stores is about 72% in three lines and smaller cities.

Among them, there were 1590 children's wear stores, a year-on-year increase of 433.

Although the number of Customs stores was not mentioned, the company has disclosed 96 news outlets in the fourth quarter of 2012.

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< p > XTEP international also said in its annual report that in 2012, the total number of XTEP brand retailers was 7510, which was 1.1% lower than that of last year's 7596.

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"P" China has also publicly announced that it closed 569 stores last year.

According to the company's annual report, the company had 33 distributors in 2012 and operated 2009 or Kappa retail stores directly or indirectly.

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< p > industry analysis shows that stores are mainly related to the marketing channel of the company. The operation of distribution mode often leads to backlog of inventory, and can not adjust the inventory as quickly as the direct store does, and digest it in time.

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< p > sports brand generally high inventory < /p >

< p > the industry generally believes that the main reason why sports brands are closed is high inventory.

In recent years, six major brands in China are expanding continuously, and the result of expansion is high inventory.

From the published annual reports, high inventory has become a common problem of sports brands in China.

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< p > "high inventory is the biggest problem of domestic sports brand, so solving inventory problem is the top priority of sports brand.

"CIC consultant light industry researcher Xiong Xiaokun said so.

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< p > according to Anta annual report, the inventory of the company in 2012 was up to 687 million yuan, an increase of 11.17% over the 618 million yuan in 2011, and the average stock turnover days increased by 13 days to 51 days compared with the previous year.

In addition, the annual report shows that the company's accounts receivable in 2012 was 1 billion 370 million yuan, and the turnover days of accounts receivable increased by 8 days to 34 days.

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< p > PEAK also 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.

The annual report shows that PEAK's inventory amounted to 390 million yuan in 2012.

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< p > and according to XTEP international annual report, the company inventory 583 million yuan in 2012.

The company said that the average stock turnover days in 2012 were 70 days, which increased by 7 days compared with 63 days in 2011. Besides, the average turnover days of accounts receivable and bills receivable increased to 74 days from 64 days in 2011.

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< p > China's trend is indicated in the annual report that the company has digested the stock of the tag price of about 1 billion 300 million yuan as planned, but the stock of the company in 2012 is still 287 million yuan.

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There is also a stock problem at P > 31 degree.

According to the annual report, the inventory in 2012 was 460 million yuan, up 9 million 500 thousand yuan over the same period last year.

In addition, the average stock turnover days in 2012 increased to 56 days at the end of last year, compared with 40 days in the same period last year.

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In order to digest the inventory, P and the distributor have cancelled a number of orders that have not yet been produced.

In the autumn and winter order meeting in 2012, the orders for the 31st order decreased by 10% and 26% respectively.

In addition, the company expects 2013 spring and summer orders and autumn orders will be reduced by 23% and 19% respectively.

Meanwhile, in the spring and summer ordering meeting in 2013, the wholesale discount rate for wholesalers increased from 58% to 60%.

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< p > compared with 31st degree, by reducing orders and reducing inventory, Lining adopted a way of reducing the value of reserves to solve inventory problems once and for all.

According to the annual report, the inventory of Li Ning Co in 2012 was 920 million yuan.

The total stock of the six sports brands totaled 3 billion 327 million yuan.

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< p > the way out of sports brand < /p >

< p > from the above published annual report, we can see that the domestic sports brand's performance in 2012 is not satisfactory.

All big companies are aware of the high inventory problem caused by rapid expansion, and they also experience the low profit pain of having to sell at a discount.

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< p > but in Lining's view, homogenization is the biggest difficulty facing the domestic sports brands at present.

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< p > Lining told reporters: "wholesale mode and over expansion cause a distortion of supply and demand in the short run.

How to get out of this predicament, companies are facing the same challenges.

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< p > Xiong Xiaokun, a light industry researcher of CIC, believes that the company must face up to the problem of homogenization of products and focus on differentiated industries in the future.

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< p > it is understood that at present, 360 degrees and Anta are increasing investment in children's clothing, hoping to find a breakthrough from the road of children's wear.

And PEAK public relations director Liu Xiang also revealed that in the future on the basis of basketball as the theme, PEAK will also enrich other categories, such as running series, women's series, etc., through the continuous enrichment of categories to achieve performance improvement.

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< p >, Lining also said that the products in the future should be individualized and run mainly in running, basketball and badminton products.

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