Sports Brand Sales Decline, Inventory Pressure From Brand To Channel Business

< p > for those sports brand dealers, almost all of them rely on support from brand enterprises, and they can not choose many ways to survive. < /p >
< p > however, under the pressure of the market front of the major sports brands and the pressure of "a href=" http://www.91se91.com/news/index_h.asp "less than /a", the discount of Direct stores is also becoming lower and lower. It is almost impossible for franchised stores to resist the market downturn alone. Nowadays, when branding is not enough, it is a puzzle and problem that dealers have to face. < /p >
This year, a round of big sales promotion and crazy sale have been staged frequently in sports brand P. The cold winter of the once famous sports brand lasted until the end of last year. < /p >
< p > recently, the announcement of several local sports brands showed that the decline in orders and the decline in profits are still common phenomena, and the road to recovery is still far away. 361o's recent 2013 winter orders will reduce the order by about 17% compared with the previous winter order. The order volume of XTEP's order meeting in the fourth quarter of 2013 (at wholesale value) dropped by about 15%~17% compared with the same period in 2012. However, the order volume of Anta's orders in the fourth quarter of 2013 (calculated at wholesale value) also dropped by 5%~15% compared with the same period last year. < /p >
< p > sales decline, allowing inventory pressure to flow from brand dealers to channel providers. Dealers who once made great contributions to the sports brand enterprises have done a lot of work. But now a lot of them are leaving in a dark mood, and the dealers who remain in the industry are not very well off. In 2013, whether these dealers can recover from the cold winter and whether they can survive the high inventory pressure, it seems that the prospects are hard to predict. < /p >
< p > < strong > or changing or wait-and-see < /strong > /p >
< p > "buy one get one", "minimum 3 to 60 percent off"... In the major commercial circles of < a href= "http://www.91se91.com/news/index_p.asp" > Beijing < /a >, the major sports brands have entered the "Crazy" low sale period. From 2012 to now, most domestic sports brands are almost synonymous with "endless sale" in the eyes of mass consumers. < /p >
< p > Chen Hongsheng is the responsible person of a sports brand in Fujian. He said frankly, "compared to our next level dealers, we can get a lower discount from the company, and the sales pressure will be smaller. But the only thing we can do now is just keep selling. < < /p >.
< p > in addition to the regular store sale, Chen Hongsheng has recently sold a more than 1000 square meter field in Wanda, Cangshan, Fuzhou, for half a month. The sale will be carried out by distributing DM leaflets and advertising on buses, and the commodity discount will be around 1~4. "Compared with the agents in other provinces, the agents in Fujian are fairly good. After all, our brand is Fujian's local brand, and its recognition is relatively high. At present, our stocks are basically in 2011. Agents in other provinces, apart from doing special sales, have to take the channel of electricity suppliers and have greater pressure. "Chen Hongsheng revealed that some brands had 88% off super low discounts in some areas, most likely there were goods in 2008 and 2009. < /p >
< p > Chen Hongsheng has been able to do this in sports clothing, < a href= "http://www.91se91.com/news/index_c.asp" > shoe industry < /a > now. A total of more than 60 phone calls were made through the affiliate store's sports brand affiliate store provided by the "franchised store" website and Alibaba website. Nearly more than 40 of them said they had switched to other industries in 2012. Dealers still operating in the industry said they were not satisfied with the current market. Some old dealers even said they were not profitable, but because they were not familiar with other fields, they had to stay in sports clothes and shoes. < /p >
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< p > < strong > failure of manufacturer's strategy affects distributor < /strong > < /p >.
< p > Wang Licheng is a senior franchisee of PEAK in Wuhan, Hubei, and joined PEAK in 2007. He has gone through the process of PEAK's massive expansion, and saw more PEAK franchisees fall down. < /p >
Before P, PEAK moved its agent from the provincial level to the municipal level in order to quickly distribute the goods. Although this method can quickly increase the order amount of the enterprise's brand, it also can easily lead to the serious backlog of the inventory of the dealers, and the action of going out of stock becomes fragmented and complicated. < /p >
< p > it is understood that in 2011, in response to the cold winter of sporting goods, PEAK reduced the dealer discount to 65% off, and the retailer discount reduced to 57% off. The original old franchisee's order quantity did not increase rapidly, because the whole sports industry was at a low ebb. The reduction of discount, though attracting many new franchisees to open shop, but the new franchisee did not achieve good sales performance. Therefore, in 2012, PEAK stores, which were eliminated in 2011, were mainly new franchisees in 2011. < /p >
At present, PEAK promotes the renewal and innovation of the seventh generation shop (basketball Theme Store) well, and directly expresses the brand image of P. However, the high cost of decoration and the rise of costs have discouraged franchisees. Therefore, the current seventh generation shop is mainly PEAK's own direct shop in the laying. < /p >
< p > reviewing his 7 years of career experience, Wang Licheng admits: "pessimistic about future market." < /p >
< p > < strong > "new products" accelerate the vicious circle < /strong > < /p >
< p > nowadays, price discounts seem to be the only way for channel operators to compete. However, for dealers, the low discount advantages of the electricity supplier market and the tail cargo market make it difficult for them to shoulder the same. < /p >
< p > Wang Licheng told reporters that his store sales almost hardly maintain normal operation of the shop. In order to increase sales, Wang Licheng had to open an online store on Taobao. The selling price of online shop products is much lower than that of facade shops, but the consumers in the country are facing the loss of the income of the entity stores after the increase in net sales volume. In Wang Licheng's words, its stores are now only capable of distributing PEAK products, as well as the "experience shop" of neighborhood residents near the store. The real profit making is Taobao online shop. < /p >
< p > although online stores are popular, it is hard to replace most consumers' shoes. Therefore, online stores will have a certain impact on the sale of physical stores, but after all, the impact is limited. The real sales of stores are products that flow into the tail market and sell at below cost. < /p >
< p > "usually, the sports brand that flows into the tail market is at least 2 years old stock. This part of the product is not fashionable because of its old style. Its low price sale does not affect the normal sales of specialized stores. "Recently, Liang Jiliang, chairman of China's tail goods Merchants Union, found that in the tail cargo market, it could be seen that a brand had just been on the market for one or two months. Most of these products are dealers who have lost a lot of money and close their stores. Because they can not get the cost of the manufacturers, they have to sell their products to the tail market at a low price in order to stop the loss. < /p >
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"P >" another reason for the emergence of new products in the tail cargo market is that when some enterprises are too high in inventory and cash flow is difficult to transfer, in order to ease financial pressure on funds, fabric producers, foundries and logistics enterprises will pay for raw materials, foundry and logistics costs with products. However, the holders of this part of the product do not fully grasp the price system and distribution system of the whole market. Therefore, in order to get cash flow as quickly as possible, the quickest choice is to let these products flow into the tail market. "Liang Jiliang said. < /p >
< p > this "new product tail cargo" phenomenon will directly affect the sales of dealers, and accelerate its development to a vicious circle. Liang Jiliang analysis pointed out that, because this part of new products and the products sold in the brand stores are homogeneous, they sell at a very low price. Naturally, the sales of the stores will be greatly affected, resulting in high inventory. In order to reduce storefront inventory, dealers will return products to the tail cargo market at cost price, and the resulting impact will form a vicious circle. < /p >
< p > at present, how to walk side by side with distributors in the cold winter industry has become a common understanding of sports brand in the whole industry. However, in Liang Jiliang's view, although stabilizing the dealer team can make enterprises temporarily tide over difficulties, it is only a temporary solution. The real solution to this problem is that all major brand enterprises need to fully study the market demand, not only to study the demand of the market, but also to study the fabric, style and trend of developing the real demand of consumers. Otherwise, even if the industry recovers, the production and sales pattern that does not meet the needs of consumers will be eliminated. < /p >