Major Sports Brands Expand Retail Channels To Seek Breakthroughs

< p > domestic sports brands struggling in inventory and closing stores began to use the retail channel as a breakthrough. Up to now, 6 Chinese sporting goods companies listed in Hong Kong have released their 2012 earnings reports. Behind a dismal figure, reducing dependence on suppliers and strengthening retail channels has become a breakthrough strategy for major sports brands such as Lining (exclusive store), Anta (franchised store) and PEAK. In the past, most local sports played the role of wholesalers only, and retail channels were mostly handed over to the suppliers to control them. < /p >
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Jin Zhenjun, executive vice president of Li Ning Co P, said in his earnings report last year that the retail business model that Lining is now trying to create is quite different from the previous model. It will implement a retail channel led mode that combines the "order placing order" and "quick response product line" and "quick replenishment". Anta is also transforming into a retail channel. Ding Shizhong, chairman and CEO of Anta's board of directors, said in a media interview that the transformation from wholesale to retail needs to start from the entire supply chain process, and the demand of stores is more important than suppliers. It is understood that Anta implemented the IT integration project, which is expected to cover 70%-80% stores at the end of the year. It will strengthen the terminal management of stores and require each store to achieve a separate order, making the replenishment mechanism more flexible. < /p >
Chen Yihong P once pointed out that "in the past, brand dealers did not control the retail channel. If you only wholesale, you would have completed the task for the brand players, and the brand owners would not care about the changes in the retail outlets." CEO The industry believes that this is not a problem when the retail situation is good, but once the market situation is not good enough, because of the unfamiliarity with the market, the inventory of the brand will appear in large numbers. Over the years, ignoring sales terminals and over reliance on wholesale sales have led to the backlog of inventory that has made sports brands suffer. Last year, Lining lost nearly 2 billion yuan, and Anta, PEAK and 361 degrees showed a double drop in operating income and net profit. XTEP's revenue increased slightly by 10 million yuan over the previous year, and net profit fell 16.2% compared to the same period last year. < /p >