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    Sports Brand Clothing Orders Decline Channel

    2013/8/14 18:24:00 31

    SportswearClothing IndustryGarment EnterprisesClothing Orders

       Decline in order volume


    "The order meeting in 2008 will bring about a two digit increase in the volume of orders, which is now reversed." Insiders said that the order volume of sports brands this year is still in a downward path, which is gratifying to a gradual narrowing of the decline. XTEP In the fourth quarter, the order volume dropped by 15% to 17%, the average annual decline was between 15% and 20%, 361 in the spring and summer, 23% in the fall, 19% in the fall, 17% in the winter, and the decline in the annual performance of the order was about 20%. And PEAK's orders will change significantly, the spring was flat compared with the same period last year, down 18.5% in the second quarter. PEAK said, "due to the change of the order mode, the Group believes that the order from the third quarter of 2013 will not be comparable. Therefore, the order will be suspended from the beginning of this quarter to avoid misunderstanding." Li Ning Co stopped publishing the results of the order meeting in 2013 when the Q2 order meeting was held.


    The person believes that it is understandable for the major brands to avoid the practice of announcements of orders. After all, after 2008 shouting and beating, overproduction was not fully realized at that time. At the forefront, injuries are most obvious. The whole sports brand plate is the first to expose problems. As long as the malignant inventory is not digested one day, it is impossible for an enterprise to increase the order quantity only for the surface data.


    Inventory problem is not domestic Sports brand Unique. For example, the second tier brand Reebok in Adidas group, its series of products in the first quarter of the wholesale sales showed a "two digit" decline, so that Adidas's first quarter wholesale business revenue decreased by 3%, while the data in the same period last year was 10% year-on-year growth. Last year, Reebok Q4 sales fell 12% to 428 million euros, due to Reebok brand impairment of 265 million euros, Adidas lost fourth quarter last year. In 2008, the British UMBRO (Umbro), which was purchased by Nike at 285 million pounds, was sold at a loss of 225 million dollars in December last year. The shopping malls of large shopping malls in the mainland are now hard to find UMBRO, while UMBRO, the agent of UMBRO brand in mainland China, is claiming a big loss to Nike. MIZUNO, Japan's biggest sports brand, was also abandoned by Chinese agents because of its poor profitability.


    "Adidas's new product is now hitting 25% off, which was never before." Sports brand related personages analysis said that the domestic front-line sports brand should do is to avoid confrontation with them, snatch the market of the two or three line international brand out of the rest, and stabilize the main battlefield with cost-effective products.


    Enterprises expect bottom to rebound


    "Without revolution, they will be revolutionaries." A middle-level manager in XTEP group said that the market could not be hot or cold, otherwise it would be out of line with the market rules. Nowadays, many enterprises have learned lessons from homogenization and price wars. They have learned from the functional application and innovation of production technology at the beginning of product development, avoiding homogenization and reducing dependence on front-line workers. In the order meeting mode, from wholesale to retail control, the data management system is used to increase the ratio of supplement and turnover. In the later stage, from the promotion of the terminal store's image, we should work hard from the marketing grasp of the online platform, and achieve all-round self-improvement.


    "Now many franchisees have adopted semi futures and semi spot orders, and orders will naturally drop." The industry believes that such data changes can be regarded as an initiative, the purpose is to rebound after the rebound.


    This change has achieved some success. At PEAK's 2014 spring and summer ordering meeting, we can see that most of the eyes of foreign dealers are mainly stars. shoes And the newly launched cultural leisure shoes these two kinds of shelves, in addition, some of the functions are obvious, such as outdoor clothes with quick drying function also attracted some distributors to stop.


    PEAK's relevant person in charge told the media that PEAK had voluntarily reduced the supply in response to market changes, and changed the original order from the futures system to the "explosive payment" mode: if the distributor expects to sell 1 million pieces in half a year, clothing 700 thousand orders can be placed first, and the remaining 300 thousand parts will be processed according to market conditions. At the order meeting in the first half of this year, some of PEAK's "exploding" basketball shoes received 400 thousand double bills, worth more than 100 million yuan, showing signs of warming in the footwear industry.


    XTEP also stressed the importance of the "return payment", which will accelerate the production cycle of the "explosion", such as striving for a pair of jeans to be shipped from 7 days to 10 days next year, and completing the "explosion payment" supplement in 15 days.


    Anta is also showing signs of warming. Last week, Anta Sports Products Limited announced the first half of 2013 performance bulletin and 2014Q1 order meeting data. During the reporting period, the company's operating income was 3 billion 370 million yuan, gross margin 41.1%, net interest rate 18.6%. Despite fierce competition in the industry, operational data show that Anta's retail transformation is beginning to take effect, and turnover, gross margins and net interest rates are all higher than market expectations. Especially, the first positive growth of 2014Q1 order data has been achieved since 2012Q3. On that day, Anta's shares closed at HK $9.33, the highest in 15 months. The industry is optimistic that the sports brand will lose its burden next year, and will be able to go back to the bottom to achieve a rebound.


       Industry adjustment continues next year


    In addition to continuing to find domestic and international channels to digest inventory, changing orders and actively reducing orders, sports brand's involvement in other fields has never stopped. This year, the outdoor field, which is popular among all sectors, has become a new force in many sports brands. For example, the recent XTEP 2014 spring product order meeting, as the new trend of the city's 20 hot riding costumes collective appearance. It is reported that these riding apparel will not appear in XTEP's physical store sales, but to take the electricity supplier channels. In addition, Adidas has opened more than 30 new business circles in China. Outdoor products Shops, mainly located in northern China, will continue to open new stores this year. The total number will be around 100.


    "The development of new categories needs to be supported by a clear brand positioning, otherwise it can only be a stock of new products." Zhong Minglang, head of Shanghai Ming Yi strategy consulting firms, said that we should face up to the decline of orders at the moment. Although the company is actively adjusting the ordering method, it is also forced to make adjustments under the premise that the flow of funds is not smooth and dealers still have stock pressure. The industry should not be blindly optimistic about the slight rise of some categories. According to the existing circumstances, he personally believes that the concussion will continue. Consumers' consumption habits and ways of purchase are changing. The demand for pure sports brand is occupied by outdoor and leisure products, and the market share is shrinking. In order to adapt to these new changes, it is not enough for enterprises to change their order patterns and get involved in other types of development. No matter whether the main brand or sub brand operation needs to have a clear market strategic positioning, and then focus on this goal, all products, management and marketing will be done to the utmost to achieve real healthy operation.


    "The situation in the clothing market, especially the sports brand, is still not optimistic." Zhu Qinghua, a light industry researcher at CIC, said that under the background of a weak economy, the marketing strategy of foreign sporting goods enterprises has been sinking, which has increased the competitive pressure of domestic enterprises. Under this situation, domestic Garment industry The crisis should be tackled as soon as possible. The deep adjustment of industry and the transformation and upgrading of enterprises are imperative.

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