Sporting Goods Industry Shuffle Prelude Opening Can Not Afford To Play Out

P, a local sports brand developed on the basis of rapid expansion mode, I am afraid the ceiling of this model is so fast.

No, in recent years, the industry has staged the price of Chinese cabbage in turn.

At the same time, last year, local sports brands that handed out the negative results were also "abandoned children" in shopping centres.

For a time, the collapse of China's sporting goods industry was rampant.

In the industry's view, the current problems in the sporting goods industry mean that the industry has entered a period of deep adjustment and is moving towards centralization.

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< p > < strong > industry pain adjustment < /strong > /p >

Less than p days ago, Lining, the old powerful local sports brand boss, once again joined hands with fans to perform a sober scene. The product sold a cabbage price of as low as 19 yuan.

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< p > it is worth noticing that Lining has been promoting sales promotion on the Internet at the same time, but the promotion of his shop has not been interrupted for nearly half a year.

Lining, a shop assistant at the Beijing landscape garden, Yonghui supermarket, said that the sales of 40 percent off new products and 70 percent off of the old products had been done for some time.

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< p > why would Lining make such a great effort to promote sales? Li Ning Co responsible person said that increasing discount sales efforts is part of the company's channel revival plan, the purpose is to clean up inventory.

In addition, in order to reduce the inventory pressure of retail terminals, the company will also increase the construction of factory and discount stores.

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< p > in fact, in the face of the industry problem of high inventory, it is not only the Lining family that uses discount sales to promote double-edged sword.

Many sports brands, including kappa, 31st degree, Jordan and so on, are doing promotional activities of up to 70 percent off of the sports energy hall on the ground floor of Zhongyou department store in Beijing.

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< p > this is not a solitary case. Similar discount promotions are spreading rapidly from many retail outlets from south to north.

For a while, "discount" became a necessity for local sports brands. It seems that enterprises can not sell without discount.

In shopping malls, sales promotion of sports brands full, full and discounted can be seen everywhere.

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< p > it is undeniable that the Olympic Games held in Beijing in 2008, like a match, ignited the sporting goods industry.

The local sports brands obsessed with the "Wan Dian plan" have achieved extraordinary development.

However, in 2012, after the bottleneck of opening up shop to develop, the sports brands took the strategy of contraction and carried out the reform of the channel drastically.

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< p > reporter statistics show that in 2012, the local sports brands released a total of 4930 stores closed to 5 other than 331 degrees last year.

Among them, PEAK, Lining, and China are the three shops that closed more than one thousand.

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Han Yu, director of public relations of P & amp; 31 (China) Limited, told an interview with China Daily News that last year the company's stores mainly concentrated in children's wear market.

For stores that are not optimistic, the strategy is also closed because the only way to improve the overall operation capacity of stores is to improve.

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< p > for this reason, Li Ning Co, which regards the closure of inefficient stores as the core initiative of the change plan, believes that the emphasis now is not to increase the number of stores, but to improve the operation efficiency and profitability of the shops.

Therefore, it is imperative to optimize retail channels and close down inefficient stores.

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< p > strong > congenital malformation can only be gained by post natal fertilization < /strong > < /p >.

Why does the myth of the rapid growth of sports goods industry come to an end? < /p > p

< p > it is undeniable that factors from the great environment can not be ignored.

After all, last year, affected by the slowdown in the economy, many industries were not optimistic. The overall growth rate of the sporting goods industry was inevitable.

However, the industry's own shortcomings have also contributed to its eventual unsustainability.

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< p > in Li Ning Co's view, the problem is in the mode.

In the past decade, in order to seize the market share, the local sports brand, which grew up in the wholesale operation mode, has woven a huge marketing network.

However, the consequence of over expansion is that the retail channel is in a vicious circle. The inventory pressure of distributors is generally increasing, and the profitability of the shops has decreased in a comprehensive way, and the industry has shown signs of saturation.

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< p > for this reason, Han Ye believes that the pursuit of "breadth" ignoring the "depth" of the local sports brand, the foundation is not solid, one is that the franchisee is uneven, and the living conditions are different.

After the Olympic Games, competition among local sports brands and competition with international sports brands is becoming more and more intense.

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< p > in addition, the sports industry was not satisfactory last year. It is also closely related to the immature development of mass sports and the uneven development of sports industry's internal structure.

At present, the dominant sports value orientation of China is competitive sports, and the demand for mass sports consumption that the sporting goods industry relies on has not been completely released.

Because sports has not yet become an indispensable part of the general public's life, this has affected the development of sports goods industry, Han Ye stressed.

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< p > although the Beijing Olympic Games did not effectively release mass sports consumption demand, it played an important role in promoting the local sports brand.

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< p > a reporter looked at the time for the listing of 6 local sports brands and found that they were basically carrying a ride on the market before and after the Olympic Games.

For example, the trend of China and Anta's listing time were in 2007, XTEP was listed in 2008, and 360 degrees and PEAK landed in the capital market in 2009.

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< p > in the view of the industry, the listing of local sports brands is inseparable from the promotion of capital. This is also a major reason for the rapid expansion of the sporting goods industry before last year.

However, the consequences of not opening stores blindly according to market demand are very serious.

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< p > as mentioned by the insiders mentioned above, PEAK got the favor of many venture capitalists such as Sequoia Capital, Jiayin international, Lenovo investment and so on, and got three rounds of investment.

After the end of the last round of financing before the listing in 2009, PEAK CEO Xu Zhihua said in an interview with the media: "this fund is mainly used for brand building and channel construction of the company, and 1000 new stores will be opened this year."

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< p > the promotion of capital can help the sporting goods industry grow rapidly. However, ignoring the development of the connotation of sports itself can hardly stand the test.

At present, the investment of local sports brands in professional and R & D is not enough. Most of them are sporting "sheep heads" selling the "dog meat" of leisure. How can this mode last? The key way is CEO, Zhang Qing, a sports consultancy.

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< p > look at the history of local sports brands. Most of them are from foundry, such as Anta, XTEP, PEAK and so on.

The rise of these enterprises is closely related to their superb imitation skills and the promotion and promotion of big handwriting.

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< p > it is understood that in the 90s of last century, there were nearly 3000 enterprises in Jinjiang, Fujian, namely "a target=" _blank "href=" http://www.91se91.com/ "shoes" /a "products, and the manufacturing enterprises made OEM for foreign brands.

After copying, asking for celebrity endorsements, advertising on the CCTV and other media, and opening up stores on a large scale, Anta, 31st, XTEP, PEAK and other local sports brands represented by Jinjiang began to sprout up like mushrooms.

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< p > it is worth noting that the clean inventory strategy widely used in the sporting goods industry has achieved initial success.

At the end of last year, the total inventory of the six major local sports brands including Lining, PEAK and XTEP, compared with 3 billion 721 million yuan in the middle of last year, had dropped by 10.67%, to 3 billion 324 million yuan.

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< p > but the sequelae of inventory are also exposed.

The gross profit margin of 6 local sports brands listed on the market has almost declined, and net profit has dropped to 5 in varying degrees.

Among them, the biggest decline in Lining, appeared in the first 8 years of listing losses, loss of nearly 2 billion yuan.

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< p > however, a number of related personnel, including Liu Xiang, deputy director of Public Relations Department of PEAK China Limited, said that channel reform is a painful process and a continuous process.

In the long run, this strategy will continue this year.

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< p > < strong > can't afford to go out < /strong > /p >

"P", "international sports brands are Adidas, Nike, Reebok and Puma. There are 6 brands listed on the mainland in Hongkong. Are you surprised?" Zhang asked.

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< p > Zhang Qing told reporters that at present, there are as many as more than 20 listed companies in the sporting goods industry, and there are more than a dozen companies selling more than 3 billion yuan in line.

Does the market really need so many enterprises? Obviously, it is not the most powerful proof of the surplus of industrial products caused by homogenization.

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< p > "next step, if the company does not make rational judgments, it will still be very risky and may even collapse if it is still fooling around by investment institutions.

Zhang Qing judged.

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< p > the independent critic of shoes and clothing industry Ma Gang believes that people used to wear sports a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > or wear casual clothes. Now there are more than 10 choices.

If the product is not featured, it will easily lead to a surplus. This is the case in the sporting goods industry.

And throughout the development of the clothing industry, the vanishing brands are not few.

The local sports brand, which is in its saturation stage, has entered a period of adjustment.

In the process, some brands will disappear, some brands will be reborn after experiencing the Phoenix Nirvana, and the majority of the market share of the industry will be held in the hands of a few enterprises.

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Many people in the industry, including Zhang Qing, believe that the market space of the sporting goods industry is still very broad. For example, with the realization of urbanization and industrialization, the aging population will not reach P. The tough families need to maintain a healthy body to serve the society. This demand can not be ignored.

Moreover, with the development of sports goods industry and the breaking of policy barriers, the league can form an organic combination with the market. After being controlled by the system, the industry can really rely on the noumenon industry to develop.

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< p > data show that in the current sports industry value of China, the core industry is only about 10%, and the proportion of industry contribution to sports goods is as high as 80%.

This situation is completely opposite to that of the sports industry.

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< p > undoubtedly, when opportunities and challenges coexist, it is very important for local sports brands to occupy the commanding heights in the wave of industry concentration.

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< p > Li Ning Co responsible person said that from the perspective of the industry development law, it is inevitable to pform to a retail oriented business mode, because only demand driven, can consumers be satisfied.

Next, Lining will focus on sporting goods business, focusing on the domestic market, focusing on Lining.

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< p > "in the sporting goods market, it is very important to enrich the product line. The next step is to make effective distinction between professional equipment, fashion equipment, children's clothing and public leisure products to meet the needs of different consumer groups, and create a one-stop shopping experience through the collective store."

Han Ye said.

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< p > Ma Gang believes that in the process of industry concentration, local sports brand segmentation market is a good choice.

For example, to seize the outdoor supplies market, which is in a state of competition, adding professional equipment and moving into light sports.

However, we must find out our own characteristics.

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