Discount Become The First Weapon, All Clothing Brands Try Their Best To "Go To Stock".
< strong > six domestic sports brands closed more than 3000 stores last year, < /strong >
< p > < strong > clear inventory became the top priority of this season < /strong > < /p >
< p > > a href= "http://www.91se91.com/news/index_h.asp" > clothing < /a > industry said that the most powerful clothing discount will appear in the second half of this year.
< p > 365 days, almost every day wearing "a href=" http://www.91se91.com/news/index_c.asp "sportswear" /a "and" a href= "http://www.91se91.com/news/index_z.asp" sports shoes "/a", the age of 15 to 25 years old young consumer groups, when they are constantly famous overseas sports brand at a lower price to stir up nerves, what should the local sports brand do?
< p > this is probably a more brutal "competition" faced by Lining, a gymnastic prince.
< /p >
< p > according to incomplete statistics, in the face of the slow growth of the industry market in 2012, Lining, PEAK, Anta, China, and XTEP's six domestic sports brands, which had been hit by internal and external attacks, shut down more than 3000 stores.
< /p >
< p > with the 2012 performance reports coming out one after another, in 2013, the domestic sports brands expressed stronger desire in the process of fighting against the shrinking of the channel, inventory backlog and sales decline.
< /p >
At the same time, foreign brand Nike announced that it will open 40 factory shops in China, P.
The survival environment of sports brand in China seems to be more severe.
< /p >
< p > < strong > "horse race enclosure" will never return. < /strong > /p >
< p > people in the industry have joked that the killing power of Nike shop can not be underestimated. Other sports brands within a kilometre are difficult to survive in direct, exclusive or discount stores.
< /p >
Not long ago, P announced that Nike will open up 40 factory stores in China, pushing the one or two to three line market in China, with a discount of 3 to 60 percent off.
Originally, some "injured" local sports brands were forced to "scrape the wound" road.
< /p >
< p > recently, Lining < a href= "http://sjfzxm.com/DESIGN/designer/index.asp" > sports goods < /a > Limited (02331.HK, hereinafter referred to as Li Ning Co) published its annual report 2012.
According to the announcement, in 2012, Li Ning Co continued to streamline and rationalize its sales network, close its stores with low efficiency and open up more potential stores.
By the end of 2012, the number of shops in Lining regular stores, flagship stores, factory stores and discount stores was 6434, a net decrease of 1821 compared with December 31, 2011.
< /p >
< p > according to the HKEx information, Li Ning Co earned 6 billion 739 million yuan last year, down 24.5% from the same period last year.
Gross margin was 2 billion 550 million, a year-on-year decrease of 36.9%.
The profit attributable to equity holders should be reduced to a loss of $1 billion 979 million, partly due to reduced wholesale sales, provision for accounts receivable and inventories, costs associated with the implementation of change plans and channel rehabilitation plans, and other restructuring costs.
< /p >
Less than 1/4 of PEAK's net profit is far from Anta's 770 million yuan, P said.
< /p >
< p > Anta sports (02020.HK), for the first time in 5 years since the listing, the company has slipped in its performance for the first time since the first half of last year, Anta sports performance has declined for the first time.
According to the 2012 annual report, Anta sports business income fell 14.4% to 7 billion 623 million yuan over the same period, and net profit fell 21.5% to 1 billion 359 million yuan over the same period.
< /p >
< p > local sports brand PEAK sports (01968.HK) released its 2012 annual results in the afternoon of March 11th. Last year, PEAK recorded a turnover of 2 billion 903 million yuan, 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% from the same period last year, while the net profit margin was only 10.7%, falling to the lowest level since 2008.
< /p >
< p > by the 2008 Olympic Games in Beijing, the sports brand once added hundreds of stores.
But after the "Olympic market" ended, the brands had to face the consequences of excessive expansion - increased inventories.
Additional sales declined, and the company had to take a retreat strategy.
As a matter of fact, since 2011, the major brands have already started off shop fever.
< /p >
< p > however, the narrowing of channels will undoubtedly add to the cost of inventory.
In the post Olympic era, high inventory has become the "number one public enemy" of many brands.
< /p >
< p > the responsible manager of sports and outdoor products at the first incom discount store in Hangzhou City, also told reporters that it felt more and more anxious.
< /p >
< p > "14 sports outdoor brand on the whole floor, the discount time is more and more dense.
Some of the styles that haven't been listed for a long time are not very popular in the past, and now they are basically discounted.
There are no new discount prices for promotional holidays.
The manager said.
< /p >
< p > Miss hang Col. Zhang, who wandered in department stores in the city center, has always been a stingy discount Adidas clover series. She also promoted the "half off promotions" for winter money.
Under the general discount of sports brand, "no discount, no buy" has become the main shopping mode of many people in the physical store.
< /p >
< p > there are also netizens in the three or four line cities, who have encountered the promotion of domestic sports shoes "buy one get two", and the ultra-low price can also frighten people to "do nothing".
< /p >
< p > in the area of Jiangsu, Zhejiang and Shanghai, facing the high storage dilemma, supermarkets also joined the army of selling stocks.
Nike and Adidas will sell the supermarket as a "sewer", 3 to 50 percent off strength, 200 yuan, a pair of shoes, 100 yuan, a T-shirt, the price can be compared with the supermarket's own brand.
< /p >
< p > meanwhile, 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 > in the interview, Lining, a famous sports brand in China, has also spoken frankly about "going to stock".
"First of all, we should reduce the proportion of stocks."
Data show that as of the end of June 2012, Lining stock has reached 1 billion 138 million yuan.
It is the surge in inventories that adversely affects the retail business and profitability of retail stores, and leads to continuous deterioration of cash flow and financial conditions.
< /p >
< p > in the interview, we know that the inventory problem is not only the sports brand.
Deal Madge is a main brand of men's wear. Li Junhui, founder, told reporters that he is worried about the clothing industry. The key factor is inventory.
< /p >
< p > "not only is us, but the vast majority of garment enterprises in China have large inventory problems.
In the second half of last year, whether it is offline or online, you can see a lot of discount on brand clothing, so the purpose is to clear the warehouse.
Li Junhui said, "this year's situation is more serious, until the second half of the year will be a concentrated season of clothing discount."
< /p >
< p > he said that many clothing brands still had "old books" to backlog their stocks. Now the "old version" is getting less and less. Only by clearing the warehouse to recover the funds, the pressure of high inventory has made many garment enterprises breathless.
< /p >
< p > in addition to the simple discount sale, many clothing businesses also realize that the "full delivery" joint selling method can give extra incentives to the guide staff or stimulate consumption. Besides, some closed shop sales and special welfare sales meetings that are open to members will also add a powerful weight to inventory.
< /p >
< p > but for the garment industry with high turnover rate, it is not obvious to digest large quantities of stock, discount sales on the "slow several pats" in the exclusive stores, or enter the factory stores to engage in "special sale" or to hope that the electricity providers will not close for 24 hours.
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< p > < /p >.
< p > Li Junhui said that the second half of the year is the peak season for clothing sales. This year there will surely be the most giving discount season, and all clear stock actions will focus on the outbreak.
< /p >
< p > < strong > discount becomes the first weapon. Every brand goes all in to "inventory" < /strong > /p >
< p > < strong > channel mode rethink < /strong > < /p >
< p > < strong > change is expected to affect earnings performance < /strong > < /p >
< p > behind many high inventories, many people in the industry will point to the "root of the problem". When the whole industry is declining and showing signs of saturation, has the previous "wholesale core", rapid establishment of marketing network, market share and too fast channel sinking been out of date? < /p >
Song Weijun, a garment practitioner who has been climbing for many years in the clothing industry of the province, now focuses on the O2O network business mode of clothing brand. He has participated in the ordering of large and small brands for many years. P
He admitted that such a "regular" order would require agents and distributors to have extremely keen anticipation of the market.
< /p >
< p > "the whole market is planned, and the information of producers and sales terminals is asymmetric.
Even if the number of orders given by the brand representative is not scientific, it is only a reference to the salesperson's prediction on the market, then add a plus, then order quantity.
If the agent orders more, the brand will get more stock and the stock will come out. "
< /p >
< p > it is difficult for many dealers to solve inventory problems by improving the way of internal operation, which may be fatal to the channel of sports brand enterprises.
< /p >
< p > "ERP information system construction is not perfect, multi-level game among businesses is also playing.
For some clothing companies, a lot of goods are not in the hands of consumers, but in the warehouse of dealers, which gradually creates channel pressure and inventory crisis.
Song Weijun said.
< /p >
At the same time, the high channel cost coupled with the low consumption directly led to the rapid decline of the garment industry. P
As the industry has said, at present, many second tier brands have less than 50% sales, and some brands have less than 30% sales.
It is not difficult to understand why the "outlets" (the discount shop), which is pursuing the reasonable profit at the same time, will be favored by the industry.
< /p >
< p > Chen Yihong, chairman of the trend group, told the media that many Chinese clothing companies went through the wholesale mode, and brands did not control the retail channels.
Not only is the sporting goods industry, but the whole industry is facing the plagued by the "brand + wholesale" mode, and some companies are slow to respond to market changes.
< /p >
< p > how to enhance the control over the retail end? The industry suggests that it will intensify the integration efforts of the channel providers.
Take the United States barrack as an example, the proportion in 2012 continued to rise to more than 25%.
< /p >
Lining has a deep understanding of this point, P.
"In 2010, the company was already aware of the industry problem.
In the future, enterprises should emphasize retail oriented. "
Li Ning Co related people said, "production, purchase, sale, the whole front is too long, it is easy to keep up with the rhythm of consumers.
For example, a product sells quickly, and there is a situation of goods being discontinued or goods being pferred.
If the company is too late to respond, it will eventually make the information and goods feedback less than the terminal market "/p".
"P" not only that, Lining also threw out the 14 to 1 billion 800 million yuan "Grand Canal revival" plan, and even targeted "please" the younger generation.
At present, after Lining's return, he put forward the strategy of "Three Focuses": focusing on Lining, focusing on the essence of sports and focusing on the mainland of China. Besides, Lining spent a lot of money on launching the limited "war boots" with NBA star Wade, which is extremely keen on sponsoring the CBA events in China.
But how to pform these actions into profits in the short term has made many people feel "not easy".
< /p >
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The Clothing Industry Is Facing A High Inventory Dilemma And Will Be Discounted In The Second Half Of The Year.
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