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The Authenticity Of The "Golden Ten Years" Of Sports Brand Urbanization In China

2013/8/6 9:03:00 52

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earnings report shows that Anta's turnover declined 14.4% to 7 billion 623 million yuan in 2012, and net profit fell 21.5% to 1 billion 359 million yuan.

In 2012, sales in 361 yuan decreased by 4 billion 950 million yuan, down 11% from the same period last year, and net profit was 707 million yuan, down 37.6% from the same period last year.

PEAK's turnover in 2012 decreased by 37.5% to 2 billion 903 million yuan, and net profit dropped by 60.1% to 311 million yuan.

In recent years, Lining, who has attracted much attention due to changes in management, earned 6 billion 739 million yuan in 2012, down 24.5% compared to the same period last year. The company lost 1 billion 979 million yuan, and for the first time in the eight years since the listing of the company, there has been a huge loss for the first time.

During the period of less than P, the negative news of sports brands in China is constantly changing. From the industry to the public opinion, the development mode of China's sporting goods industry has been deeply reconsidered in recent years.

However, whether the big brands spontaneously expose the problem does not mean that the profits will come to an end. Will the sweeping analysis and reflection lead to the thorough reform of the whole industry?

the whole industry awakening time .

"the reason for the failure of domestic sports brands is the phenomenon of" making money "and" running on the market ".

Next is the blind expansion on the scale, the brand dealer pressure the dealer, causes the stock backlog.

Third, we are slow to respond to the changing market situation and unable to come up with the response plan quickly.

Fourth, the brand has no history and no long-term plan.

All of these can be regarded as the "Chinese characteristics" of the sporting goods industry.

An insider told reporters.

in the reflection of the current predicament, people are more blamed on the "fatal temptation" brought by the 2008 Olympic Games.

"Whether China's Lining and Hongxing Erke, or the international sports brand Nike and Adidas, the stock backlog in China started before the Beijing Olympics."

A sports electronics channel employee told reporters.

it is reported that in the 5 years from 2007 to 2011, the annual average growth rate of domestic sporting goods stores was 10%, and the annual growth rate of sales was up to 20%.

In the second years after the Beijing Olympic Games, Lining, the leader of the domestic sports brand, exceeded the Adidas in mainland China and ranked second in the Chinese market, second only to Nike.

However, looking back at the historic moment when Lining surpassed Adidas, there was another explanation: that Adidas had foreseen that the Chinese market would soon be saturated, so it took the initiative to slow down the pace of expansion.

at the same time, the sports brand of China is not afraid to overtake risks to seize the Olympic Games. The driving force behind it is the rising capital market at that time.

In addition to Lining, which has been listed in 2004, several major Chinese sports brands - Anta, China trends, XTEP, PEAK and 31st degree - have been listed successfully before and after the Beijing Olympic Games.

With the explosive growth of the number of retail stores, it is reported that in 2010, the number of stores of the six major domestic sports brands was basically over 5000, with more than 7000 stores, almost equal to more than 20 sports brand shops in every county in China.

, as the decline of every industry cycle, the driving force of Beijing Olympic Games has come to the end of the London Olympic Games four years later.

In fact, some clues appeared in 2010.

That year, Lining was affected by the change of bid, which aggravated the backlog of old stock and made Anta's first profit.

In 2012, the major sports brands realized that the backlog of inventory was not a problem of Lining company, so the inventory and channel adjustment became the loudest slogan in the industry.

inventory is also not smooth road .

the inventory problem of domestic sports brand comes from the channel mode of "brand + wholesale" to a large extent.

"Brand makers hope to make quick profits, speed up the operation of cash flow and reduce investment risks, so any brand dealer wants to sell to wholesalers, without risk and no account period, which has created a unique marketing campaign of Chinese sports brands.

A sports brand dealer told reporters.

When the market is better, there is no problem with this model.

However, when the market demand is declining, because brand operators do not directly control the retail channel, do not understand the real market situation, they still distribute goods to wholesalers in accordance with past indicators, which brings serious inventory backlog.

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"over the past decade, the company has rapidly expanded its marketing network through wholesale operation, occupied market share and seized the first round of development opportunities.

However, in recent years, the growth rate of the whole industry has been declining rapidly and showing signs of saturation.

Li Ning Co told the journal that "the past development mode is no longer suitable for the future development of enterprises."

in fact, when the demand for Chinese sporting goods market is weakening, the international brands such as Adidas and Nike are also facing a backlog of inventory.

"Last year, Nike and Adidas also began to streamline futures purchases because of inventory problems. The fastest response was Nike, which started selling discounts very early, and offered profits to dealers. Moreover, it was a national factory store in 2012. Nike was a rare growth product for sports products, accounting for the growth of water in this sector.

Adidas did not make any adjustments at the beginning, but still kept the index to the distributors. But after Nike began its action, it followed various promotional activities and developed direct sales channels.

In contrast, the movement of domestic brands is very slow. "

The dealer said.

Although several major domestic brands have made clear that they will carry out channel reform and solve inventory problems.

But the relevant data show that this goal is still a long way to go.

According to reports, last year, Lining, Anta, XTEP, XTEP and PEAK 5 domestic sports brand inventory totaled 3 billion 28 million yuan.

Last year, Li Ning Co's inventory decreased by 1 billion 133 million yuan, but it still stands at 920 million yuan.

Lining pointed out at the annual report conference that the main task in 2013 was to "clean up stocks".

December 17, 2012, Li Ning Co began to implement the "channel revival plan" as part of the expansion plan announced in July 2012. This plan, which amounts to 1 billion 400 million yuan to 1 billion 800 million yuan, is mainly aimed at speeding up the liquidation of backlog of inventory, revitalization of downstream effective circulation, and enhancing the profitability of the channel. It focuses on supporting dealers to clean up inventory, buy back and integrate sales channels, and reorganize the dealers' accounts receivable through targeted rejuvenation schemes, so as to help dealers improve their financial status and cash flow.

At the same time, Lining launched the quick replenishment system, changed the traditional ordering mode, and guided the development of new products with consumers.

"in the second half of 2012, Lining's channel inventory level continued to decline through factory outlets and discount stores.

At the same time, we also launched a channel revival plan to deal with inventory problems.

Since the announcement last December, the plan has been progressing smoothly.

Li Ning Co told the magazine, "by February 2013, the Treasury sales ratio was about 7 and a half months, significantly lower than the peak value in the 2 quarter of 2012, and it is quite close to our target," the ratio of Treasury to sales fell to 6 months. "

however, in the case of international brands taking the lead, domestic brand inventory cleaning is by no means a smooth road.

Not long ago, Adidas announced that it plans to open 800 stores this year, of which 2/3 is below two or three lines, and Nike has also announced that it will open 40~50 factory stores this year.

In the first tier cities, domestic sports brands have been squeezed by Adidas and Nike. If we lose the two or three line market again, the prospect is not objective.

"Nike has already played half off or even seventy percent off, so how much discount will it be for Lining and Anta?" a local dealer said that even if the domestic brand wanted to imitate the sales pattern of the factory store, there was no corresponding talent reserve and no adjustment time. Without further courage, the reform of the channel would be empty talk.

channels are mutually exclusive, /p >

Less than P, it is worrying that domestic brands, which are also in urgent need of inventory clearance, are closing their stores at a faster rate when the two major international brands expand rapidly.

Among them, the number of Li Ning Co stores was the largest, 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.

It is expected that 475~575 stores will continue to be reduced in 2013.

China trend (03818.HK) predicts that 400 stores will be closed and the total sales network will be reduced from 2070 in 2012 to 1669 in 2013.

Since 2013, BELLE (01880.HK) has ended its cooperation with China and no longer distributes Kappa products (Kappa) from China.

although the reduction of retail outlets runs counter to the goal of going out of stock, it is still a labour pains that must be experienced in the reform of domestic sports brand channels.

Whether Lining's "channel revival plan" or PEAK's adjustment of order mode is aimed at flat channel, reducing intermediate level and strengthening control over the retail terminal.

However, those wholesalers who will be abandoned in the reform are the only buyers and sellers of the brand in the old mode.

While brewing the channel reform, domestic brands are also faced with the dilemma of being stuck in the old channel mode.

{page_break}, according to reports, Lining, former chief executive of Zhang Zhiyong, who has already been released, has repeatedly promoted the reform of the channel, hoping that the merger and integration of dealers will eventually be abandoned because of conflicts of interest among all parties.

Last July, Li Ning Co welcomed Jin Zhenjun, a Korean American partner of strategic investor TPG, as executive vice chairman of the board of directors, and launched the "channel revival plan".

"We are now pursuing a fast response channel suitable for market demand.

So this change is more thorough - the channels which are not suitable, cannot keep up with, or are hard to save and revive may be eliminated.

Including our store has been closed 20% to 30%, leaving behind will be brought out a lot of money to support them to improve their current operation models, including our 2 billion has now spent a large part, mainly to help channel regeneration, and to solve the accumulated cash, inventory, business problems.

Jin Zhenjun said.

In 2012, Li Ning Co launched the three phase of change blueprint: the first phase is a short-term action plan of 6~12 months, with the aim of improving channel inventory, improving cost structure, strengthening organization and execution capability, improving channel profitability, attacking domestic market core products, investing in brand and improving market efficiency. The second stage will focus on improving group supply chain, product listing and sales mode; in the third stage, establish a good business mode to achieve the goal of improving profit structure, channel, sales ratio, retail production rate and raising cash and return on investment. P

Li Ning Co told global finance that the first stage has achieved initial success, and the second stage is proceeding steadily.

"In the overall progress of reform, we have gradually entered the second stage of medium and long-term change in depth implementation, this stage will improve supply chain, listing and product planning, establish a retail oriented business mode, create more first-class products and customer experience."

"we believe that by the end of this year, you will see the effectiveness of our measures."

Li Ning Co brand director Li Wei said.

However, "foreign monks" may not be a panacea for all problems. Even Daphne, a more successful channel reform case before TPG, last year's "go to join" storm also led to a strong protest from small dealers.

on the other hand, under the strong attack of the two major international brands, the dilemma of domestic sports brands is not simply saved by channel reform.

A sports e-commerce personage told reporters: "from the perspective of e-commerce, domestic sports brand is not channel is not smooth, and mainly the problem of brand strength.

For example, we do not need to promote the channels of ADI and Nike, retailers are naturally in the rush, but Lining and other domestic brands need to be promoted.

however, from the perspective of brand, this industry crisis may become an opportunity for some domestic brands to gain competitive advantages.

"Under the challenge of changing demand and rising costs, it is expected that in the next three years, there will be new changes in the competition pattern of China's sporting goods market, and the pformation of the industry itself and the pformation of competition pattern are inevitable."

Li Ning Co said to this magazine, "however, the management changes and strategic adjustments made by Li Ning Co will help us to better adapt to the long-term development of China's sporting goods industry and gain an advantage in the future competition."

"gold ten years" true and false is difficult to distinguish .

When p thinks about the future of Chinese sports brand, many entrepreneurs invariably mention a word: "urbanization".

Ding Shizhong, chairman of Anta's board of directors, has said 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."

Lining also said that China's sports industry will usher in the next golden ten years, that is, in the process of urbanization in China, sports consumption and sports culture will become the most important consumption growth space.

Li Ning Co told global finance that the company is still optimistic about the prospect of China's sports market.

"In the long run, four aspects will continue to promote the development of China's sporting goods industry: the first is China's rapid urbanization process, which will pfer 1%~2% townships to cities every year. Second, with the increase of disposable income, participation in sports and the improvement of professional level, the purchasing power of Chinese consumers is gradually increasing; third, the purchase of products will gradually shift to brand products, or more attention will be paid to product design, technology content or functional pfer. In the long run, this will benefit more enterprises with brand strength and product quality; fourth, inflation will continue to drive prices up in addition to the increase in consumer buying patterns."

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it is reported that during the "11th Five-Year" period, the sports consumption of Chinese residents increased rapidly, and the number of employees continued to increase. In the 2008 Olympic Games, 3 million 170 thousand of the sports industry employees in China increased by 155 billion 500 million yuan, accounting for 0.52% of GDP in that year. The added value in 2010 was 222 billion yuan, and the proportion of GDP increased to 0.55%, an increase of 13.44% over the previous year, which is obviously higher than that of GDP.

if the above data are compared with that of the United States, 2011 of the US sports industry's income is nearly RMB 2 trillion and 300 billion yuan, and the output value of China's sports industry is less than 1/10 of that of the United States.

The sports industry in the United States accounts for 12% of GDP, and China's sports industry accounts for 0.7% of GDP, which means that more than two trillion of China's sports industry needs to be developed.

however, whether the "golden ten years" of Chinese urbanization can be effectively pmitted to the sports industry or even to the sporting goods industry is still uncertain.

First of all, although China is a big sports country, but the development path of sports industry is different from foreign countries, the "gold medal strategy" still occupies a large proportion, and most commercial sports competitions do not form benign development.

secondly, in the western sports market, the main contribution value is the sports noumenal industry consisting of sports performance and fitness leisure. Sports consumption accounts for only about 30% of the value of the whole sports industry.

China's sports noumenon industry accounts for only about 10%, while sporting goods account for 80% of the total.

This means that the speed of development of the sports industry is not exactly the same as that of the sporting goods market.

Besides P, Chinese sports brands still rely heavily on "a target=" _blank "href=" http://www.91se91.com/ "clothing" /a "a target=" _blank "href=" href= "," shoes "and" casual "products, rather than more difficult to replace sports equipment, which leads to the impact of domestic brands not only by international sports brands, but also by domestic and foreign casual wear brands.

Therefore, China's sports industry's "golden ten years" can be expected, but the future of domestic sports brands may not be optimistic.