Sports Brand Industry Is Slow To Pick Up

The domestic sports brand in "depth adjustment" has been published in 2013.

As of August 23rd, Lining, China trends, China trends, 360 degrees, Anta, PEAK, XTEP and other enterprises have disclosed the first half of 2013 performance report. The above companies reported that sports clothing The industry is still out of stock in the first half of the year. But most of these companies expect that the industry downturn will continue in the second half of the year, and it will only improve at the end of this year.

On the one hand is the industry's sustained weak expectations, on the other hand is the labor pains in the transformation of enterprises. Experts believe that the local sports goods industry "cold winter" has not yet gone, the market is warmer, "a long way ahead."

　 Negative revenue growth

"Shut shop tide" and "go stock" is still the industry keyword.

"Going forward" has become the pronoun of Chinese sports brand in the first half of this year.

In August 6th, Anta released its interim results: by the end of June this year, net profit fell 18.7% to 626 million yuan. Lining's interim report showed that the net loss in the first half was 184 million yuan, compared with 44 million 290 thousand yuan in the same period last year. In August 13th, PEAK's interim results showed a net profit decrease of 62.5% to 89 million 900 thousand yuan.

At the same time, "shut shop tide" and "go stock" is still the key word in the industry. In the first half of this year, the number of stores in Lining, Anta, PEAK, XTEP and 331 companies decreased by 1271. In the first half of the year, the total number of China's Kappa brand stores decreased from 3119 at the end of the year to 2550 now, a decrease of 569 and a decrease of 18.2%.

Stocks haven't improved. As of June 30th this year, Lining's inventory was 841 million yuan, which was 79 million yuan lower than the end of last year, and the stock of Anta was 576 million yuan, which was 110 million yuan lower than the end of last year. PEAK's inventory was 340 million yuan, which was 46 million yuan lower than that at the end of last year.

Business model hit

Consumers' personalized and differentiated demands show a significant trend of change, and higher requirements for products are presented.

Most of the brands attributed the "mid-term exam" to "continuous inventory clearance activities in the first half of the year". However, in terms of cleaning up, most of them are very similar: they include reducing orders, closing stores, cleaning up aging stocks and improving retail channels.

According to Lining's official sources, more than 90% of Lining group distributors participated in the channel revival plan in the first half of this year. The group will continue to solve the problems caused by early overexpansion through optimizing the sales network, and will continue to optimize the sales network in the future, making its structure and scale healthier, and in line with the new business model after transformation.

Ding Shizhong, chairman of Anta's board of directors, told the media that on the one hand, by controlling the quantity of orders, e-commerce channels, factory stores and discount stores were used to help clean up the off-season stocks. In the early warning of performance, PEAK said that the reasons for the decline in performance were in addition to clearing inventory. The weak economic situation had a negative effect on the group's demand for new products. Since May, Xu Jingnan, chairman of PEAK's board of directors, has continued to increase shares in the two tier market. Among them, from May 6th to May 15th, a total of 7 million 850 thousand shares were added. After the increase, the share of issued shares of Xu Jingnan and his family increased from 65.76% to 66.13%.

Xiong Xiaokun, a light industry researcher at CIC, pointed out that the poor performance of the sports brand in the semi annual report lies in the macroeconomic downturn and slow or even slower demand growth. In addition, the personalized and differentiated demands of consumers show a significant trend of change, and higher requirements for products are made. "The economic downturn, the consumer demand for products has been declining, which is adding insult to injury for enterprises. In addition, the channels such as e-commerce and other channels have a great impact on the original sales channel and business mode of the brand.

　　 Industry slow down

The key problem is the weakness of the whole industry. Perhaps by 2014, the growth of the industry will be difficult to achieve.

"In the second half of the year, the industry is getting warmer and slower, and the situation of different brands is different." Sports brand Industry Gang Ma Gang said in an interview with reporters. Under the impact of the downturn in sales and sales of the same store, and with the changing economic environment, fewer and fewer people are willing to spend money. PEAK CEO has told the media that he is not optimistic about the performance of the sports brand in the second half of the year, and believes that it is still difficult to recover in the second half of this year.

Although part of the brand semi annual report revealed that the market has been initially warmer, the second half is expected to see a turning point. But the analysis thinks, at present several big tycoons channel reform is in the labor pains. Ma Gang believes that the key issue is the weakness of the whole industry. Perhaps by 2014, the growth of the industry will be difficult to achieve.

In fact, in the Chinese market, not only local brands encountered the cold winter. Taking the American brand Nike as an example, its Greater China performance has been a drag on the global market. In the 2013 fiscal year ended in June 30th, the revenue of Nike's Greater China region fell 5% year on year, the only region in the six largest Nike sales area without growth.

China Merchants Securities analyst pointed out in the research report that as the expansion of capacity is faster than demand, those small and medium sized sports brands that have not yet been listed will be slowly squeezed out of the market under the premise of lack of funds and lack of brand awareness.

Ma Gang said that the next step is to shrink the early expansion of the channel, on the other hand, we should grasp the weak mentality of consumers to make targeted marketing. It is understood that in order to deal with the crisis, some brands have begun to transform. For example, the layout of children's wear brands is 360 degrees and Anta. Of which, Children's wear Revenue has accounted for 10.4% of the company's total revenue. The total number of retail outlets for children's wear increased from 1590 to 1678, but the income of children's clothing decreased by 37.8% in the first half of this year. "Besides, the domestic brand needs to be improved in terms of brand positioning ambiguity, product homogeneity, and low brand recognition." Ma Gang said.