Shoe Brand Wholesale To Retail Mode Flat Adjustment

Less than P, the wholesale business model which was highly dependent on the past has shifted to a more retail and consumer oriented retail business mode. It has become a common move for the sporting goods industry in 2012 to seek breakthroughs and resuscitation.

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< p > several sports brands released the annual performance bulletin for the year ended December 31, 2012 (hereinafter referred to as the annual report), offering a distinct banner of pformation.

In the annual reports of local brands, only XTEP's exclusive report rose, increasing revenue by about 10 million yuan.

Lining finally released the annual report in March 26th, earning 6 billion 700 million yuan, a drop of nearly 2 billion yuan compared with 2011, becoming the biggest decline brand.

The "fall" in 2012 is an industrial one, and it reserves strength for the future.

Zhang Qing, President of the key sports value research institute, believes that the pformation of marketing mode closer to consumers is only a matter of time in the big pattern of brand awareness.

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< p > reporter inquiries about brand annual reports found that when the outside world shouted "cold winter", the major brands had hoarded a large number of grain and grass, and more than ten billion yuan of cash and cash equivalents, foreshadowed an imminent terminal change war, will rekindle the marketing war.

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< p > < strong > store 16 billion 400 million yuan, six brands cash adequacy < /strong > /p >

< p > with the cash and cash equivalents in the annual report, six local brands, such as Anta, Lining, XTEP, 361 degrees, PEAK, China and so on, amount to 16 billion 474 million yuan.

The industry believes that the increase in cash reserves for internal adjustment is of great significance.

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< p > "if Lining's cash flow is the only one from the data, it will still increase by 50 million yuan compared to 2011.

The total assets decreased by about 8 hundred million, but Lining's burden was lighter. "

A target= "_blank" href= "http://www.91se91.com/" > shoes < /a > service industry observer Ma Gang believes that Lining's subtraction effect is obvious.

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< p > from the data, Lining inventory reduced by 200 million yuan, and trade receivable reduced by 600 million yuan.

This is not an example. Brands such as Anta, XTEP, 361 degree, PEAK, China trend also exist, but the degree is different.

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< p > "the company's discount policy for dealers has not changed much, but the reconciliation period has been raised.

To put it simply, it is to reduce credit on large agents. "

After the Spring Festival, Mr. Lin resigned from the marketing department of a listed sporting goods company, because the pressure was too great: headquarters for capital flow "can not enter", almost implemented to a severe degree.

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This p upheaval has made the market department accustomed to "placing orders" overall discomfort, but has played a very positive role in the overall financial affairs of the company.

"Owing to the decline in overall revenue, receivables have been reduced, but the rate of return in three months has exceeded 70% for the first time in several years."

Mr. Lin laughs, perhaps because of the relatively large amount of money in his hands, the boss paid a lot of money for the "severance pay", and the market team almost shuffled the cards. "Many old experiences are useless."

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Before and after the Spring Festival, the most important feature of the changes in the sporting goods industry in Quanzhou is the adjustment of the marketing structure: the market department that should have taken the profit function in the first few years in order to grab the market, because a large number of order bubbles have become the gate of spending money. P

The company's cash reserves have also surged in the wake of the return of revenue and expenditure.

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< p > with the cash and cash equivalents in the annual report, six local brands, such as Anta, Lining, XTEP, 361 degrees, PEAK, China and so on, amount to 16 billion 474 million yuan.

This has also attracted the attention of the industry. "Cash is the operating capital, there are many, some are few.

Anta, PEAK and China have more trends and others have financing. "

Ma Gang believes that the increase in cash reserves is of great importance to internal adjustments.

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< p > < strong > wholesale to retail mode flat adjustment < /strong > < /p >

< p > "flatten" has attracted more and more attention. Local brands including Anta, Lining and XTEP have made their own attempts to increase the number of dealers and increase the number of proprietary stores.

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Lining P's annual revenue was 6 billion 739 million yuan, a year-on-year decrease of 24.5%, gross margin of 2 billion 550 million yuan, a decrease of 36.9% compared to the same period last year, and a loss of 1 billion 979 million yuan, in part due to the reduction of wholesale sales, provision for accounts receivable and inventory, related costs of carrying out change plans and channel rehabilitation plans, and other restructuring costs.

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Less than P, of course, Lining is not the only one. There are many common reasons, including reducing wholesale sales and increasing the proportion of retail sales.

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< p > PEAK CEO Xu Zhihua introduces that the company is implementing a more flat marketing system, that is, the three level distribution system from the traditional "Brand Company provincial distributor - Municipal distributor retailing (franchisee)" four level market sales system, and reduced to "Brand Company city (county) distributor" - franchisee.

One of the advantages of this way is to reduce the intermediate links and speed up the decision-making process, thereby enhancing the operational efficiency of the company. Two, it enables the company to discover changes in the market and consumer spending habits in a timely manner, and introduce products that are more suitable for consumers' tastes.

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At the beginning of P, PEAK has developed many provincial agents, because they can carry out territorial management and service nearby.

Now a municipal agent can sell tens of millions of sales a year, much more than a provincial agent at that time, so PEAK chooses to increase the number of agents at the municipal or county level.

"By reducing the level of agents and flat management, we can greatly reduce channel costs and enhance market competitiveness."

Xu Zhihua disclosed that this brings good news to the long-term development of the company.

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< p > the annual reports of the major brands show that the "flatten" has attracted increasing attention. Local brands including Anta, Lining, XTEP and others have made their own attempts to increase the number of dealers and increase the number of self owned stores.

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< p > "we have been exploring the pformation and innovation of sales and marketing methods."

Xu Zhihua introduced PEAK's traditional operation mode of "sales centered (product)" to "brand centered", and realized the pformation from meeting the needs of distributors to meeting the needs of consumers. The marketing and promotion strategies of local market in subregional and sub markets have made PEAK's brand concept and product performance acceptable to more target consumers.

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