Retail Oriented Pformation Strategy Or The Key To Sports Brand Recovery

< p > "the industry in the future can't grow like a shop in the past, but depends on the growth of same store sales."

Recently, Anta chairman Ding Shizhong told reporters that the most difficult time for the industry has passed, but in the short term it is still full of challenges.

< /p >

< p > over the years, the excessive expansion finally led to the Chinese sports a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > industry broke out in a crisis last year. Several major sports brands in China were spared, including the total number of shops closed by Lining, Anta and 361 degrees, which exceeded 3000.

Recently, Anta, Lining and PEAK have released their first half financial reports. Anta's revenue in the first half of 2013 was 3 billion 370 million yuan, net profit was 626 million, Lining's revenue was 2 billion 906 million, net loss was 184 million yuan, PEAK's revenue was 1 billion 170 million, and its net profit was 90 million yuan.

< /p >

< p > as of June 30th this year, Lining closed 410 stores, Anta closed 273 stores, PEAK stores 6194, 289 stores, 361 degrees total number of stores 7826, total number of 601 stores.

< /p >

< p > from the data, the Chinese sporting goods industry has not yet got rid of the difficult situation of decline. < a > Lining < /a > from the first half of last year, net profit has dropped to net loss, and Anta and PEAK's revenue and profits are still in a double decline.

But the decline is already better than previous industry expectations, and Anta's 2014Q1 orders will also achieve the first positive growth since 2012Q3.

< /p >

Ding Shizhong P attributed Anta's super performance to the "retail oriented pformation" strategy. He said: "Anta has found a way to revive, and the retail oriented pformation strategy has achieved initial success."

< /p >

< p > "in the past, China's sporting goods market and clothing market are all brand wholesale models, that is, spending money on advertising, setting up brands, selling products to dealers, providing a set of standards for distributors, basically finished."

In early 2012, when the industry began to decline, Ding Shizhong began to think about the feasibility of pformation to retail.

< /p >

< p > by establishing a unified inventory management system, expanding the degradation channel, optimizing inventory management and refining category management, Anta finally restored the national treasury ratio to a relatively benign level in the first half of this year.

"Inventory is almost clear now, and the ratio of Treasury to sales has returned to a healthy level."

Ding Shizhong said.

< /p >

< p > earnings data show that the inventory of < a > Anta < /a > has dropped from 687 million yuan at the end of 2012 to 576 million yuan in the middle of 2013.

Although Lining's inventory was not large, there were signs of improvement, from 919 million yuan at the end of 2012 to 841 million yuan in the middle of 2013, and the average turnover period of channel inventory dropped from 9 months to 7 months.

< /p >

< p > sports marketing expert and key Road Sports Consulting Co. Ltd. CEO Zhang Qing believes that Anta and Lining both actively degrade their inventory and pform to retail, and have achieved some results.

But the most important thing is that dealers' confidence is slowly recovering. This is a very optimistic signal.

He believes that China's sporting goods industry is expected to stabilize in the first half of next year.

< /p >