Local Sports Brand Downturn Is Expected To Usher In "Golden Ten Years"

< p > < strong > industry growth is braking. Anta (franchised store) is sitting on top of the table. < /strong > < /p >

< p > recently, the five major domestic sports brands -- < a href= "http://www.91se91.com/news/index_x.asp > > Anta < /a >, Lining, PEAK, XTEP, and 31st degree, have announced the 2012 annual performance report.

The annual report shows that the overall net profit of the whole industry is negative.

Among them, the former "leader" Li Ning Co lost nearly 2 billion yuan a year, which is the first time since its listing in 2004.

PEAK and 31st degree had double income in both operating and net income, and net profit fell by more than 30%.

XTEP, which has been enjoying high growth since its listing in 2008, is no longer in sight. Last year, its a href= "http://www.91se91.com/news/index_x.asp" > revenue < /a > increased slightly by 10 million yuan compared with the previous year, but net profit fell 16.2% compared to the same period last year.

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< p > when the industry is in the doldrums, the ranking of brands is also changing.

Although Anta has been listed for the first time in the past 5 years, its operating income and net profit have been "double down". But with its turnover of 7 billion 622 million yuan and net profit of 1 billion 358 million yuan, Anta has gone beyond the "big brother".

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While P is declining, the market fronts of the major sports brands are also shrinking and they are closing in.

Among them, a href= "http://www.91se91.com/news/index_x.asp" > Lining < /a > has the largest number of stores, from 8255 in 2011 to 6434 in 2012, closing 1821.

PEAK followed its retail outlets by 1323.

The total number of stores in Anta also decreased by 590.

On the one hand, the surge in operating costs and the unsatisfactory return on investment are due to a large backlog of stocks.

Relevant data show that last year, Lining, Anta, XTEP, XTEP and PEAK 5 domestic well-known sports brand inventory total reached 3 billion 28 million yuan.

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Ma Gang, an expert in sports apparel brand observation, believes that there are three main reasons for the overall decline in the performance of the sports footwear industry in China. One is the rapid rise in the operating costs of the enterprises, while the overall consumption desire of the residents is weak. The two is that the retail channel of sports brand is becoming saturated and the phenomenon of product homogenization is serious. Three, the trend of mass consumption is shifting from the trend of sports to the wider trend of choice of leisure and fashion. Three,

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< p > < strong > the era of making money by closing eyes is gone forever. < /strong > /p >

< p > "the era of making money by closing eyes is gone forever."

Zhang Tao, vice president of Anta company, lamented in an interview with reporters.

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< p > its words are true.

After Beijing's successful bid for the Olympic Games, the sporting goods market in China showed a blowout. The local sports brand ushered in the "golden ten years".

According to the statistics of China Sporting Goods Federation, the number of stores in the domestic a href= "http://www.91se91.com/news/index_x.asp" > sports goods < /a > grew at an average annual rate of 10% in the 5 years from 2007 to 2011, and sales increased at an annual rate of over 20%.

Against this background, the prospect is over optimistic, which makes enterprises increase investment and expand production capacity, and expand the stores rapidly by virtue of the large amount of capital brought by the listing.

However, behind the extensive expansion in the long run, there are many problems, such as oversupply, high inventory and lagging management level.

With the gradual saturation of the market and the rise of upstream costs, China's sporting goods industry finally fell into a trough in 2012.

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< p > Zhang Tao's attitude is very calm for the overall performance decline of the industry.

"No industry can always maintain a positive slope development. It must go forward in a concussion and spiral upward." he said that the predicament of sports apparel brands is a precursor for the industry to mature.

"From everyone rushing to the frenzy to make money to most enterprises to earn money, then to most enterprises do not make money, and then opt out, is the inevitable development path of many industries in China, household appliances, mobile phones and automobile manufacturing industry came that way."

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< p >, however, Zhang Tao admitted that the situation in 2013 is still grim, and it is hard to say when to usher in the industry recovery.

In the process, some brands that are not suited to the situation will be eliminated, and enough excellent enterprises will survive and reoccupy the market.

In the Li Ning Co performance 2012 press conference, Lining himself also said that although the company has passed the most difficult period, it is estimated that -3 will remain an industry adjustment period in the next 2 years.

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< p > < strong > strengthening retail pformation and looking forward to the future < /strong > < /p >

< p > to accurately grasp the market trend and consumer demand, Ding Shizhong, chairman of the board of directors of the "a href=" http://www.91se91.com/news/index_x.asp "Anta" /a, has almost visited all the prefecture level cities in China in the past two years.

He found that with the acceleration of urbanization and the continuous growth of residents' income, the public's demand for leisure and entertainment is also growing.

Therefore, for the future, he is very optimistic: "after this adjustment, the industry will usher in a new golden ten years."

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< p > but in the background of the continuous decline of orders and the difficulty of cleaning up stocks, it is imminent for local sports brands to find a breakthrough.

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< p > Lining pointed out at the annual report conference that the main task of 2013 is to clean up the stock, adjust the business mode and strengthen the retail business.

Anta also believes that the existing "brand + wholesale" mode is difficult to meet the market demand. In the future, it will pform to a retail oriented business mode, from the pursuit of order growth to the single store revenue.

Ding Shizhong said that the past development mode was to first advertise, to make the brand and sell the goods to wholesalers.

In the retail mode, we must take into account the situation of distributors under the jurisdiction of the shops, and the demand of stores is more important than wholesalers.

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While P is actively going to "inventory", sporting goods manufacturers are also accelerating the pace of business diversification.

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< p > in the annual report, Anta expects that by the end of this year, the total number of "a href=" http://www.91se91.com/news/index_x.asp "children" /a "sporting goods store" will increase from 833 last year to 1000.

Ding Shizhong said that due to the promotion of urbanization and prosperity in China, parents are paying more and more attention to the quality of children's sporting goods. "Their demand for the purchase of children's products brand is increasing. Meanwhile, children's sporting goods are more dispersed than the adult sports market, and it is expected that the growth of public spending on famous brands will bring opportunities for us to expand our business."

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P and XTEP also plan to increase investment in children's clothing, hoping to bring new growth points to the company.

In addition, the outdoor products market is another breakthrough. Lining, Anta and other brands have launched their outdoor products.

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< p > however, insiders remind us that we need to guard against a new round of overproduction.

Whether children's clothing or outdoor products are likely to follow the footsteps of the footwear industry, there are similar problems such as product homogenization, channel saturation, high inventory and vicious competition.

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