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Six Major Brands Shut Down 2249 Stores And Digest Less Than 10%.

2013/9/2 16:02:00 23

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6 sports brands reached 3 billion 293 million yuan at the end of 2012, 3 billion 29 million yuan as of June of this year, and less than 10% "/p".

"new 30 percent off Cap."

This is the latest discount on the price of new products, such as XTEP and 360 degrees, which are well-known sports brands in China.

In many stores, in order to digest inventory, the major sports brands frequently offer special products, and individual brands even offer a discount of 90 percent off to 50 percent off.

The discounted activities of major sports brands will inevitably hurt P and lead to a sharp decline in performance.

XTEP made the lowest discount of 90 percent off to 50 percent off, and its business revenue in the first half of this year is the first decline in five years.

Behind the frenzied sale of discount, it is also one of the reasons why the major sports brands in China are being heavily closed.

the major sports brand performance in China is not optimistic because the macroeconomic trend of China has not yet been recovered. Sports a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > industry is closely related to the macro economy and is hard to recover in advance.

Secondly, the major sports brands in the early stage of the horse racing enclosure, excessive expansion, for the current inventory has caused greater difficulties.

Ding Shizhong, chairman of the board of directors of Anta P, said that sporting goods brands generally solve the problem of overstock through discount, and the industry competition is further intensified.

the performance of major sports brands is less than /strong > /p >

after all the major sports brands in China have experienced the process from extreme prosperity to extreme decline, what the major sports brands can do now is to try to recover the losses and control the decline of performance.

However, after a substantial adjustment last year, its aftermath has not yet ended and the performance is declining.

data show that in the first half of this year, Anta achieved operating income of 3 billion 370 million yuan, down 14.4% compared to the same period last year, net profit of 626 million yuan, down 18.7% compared with the same period last year, XTEP's operating income was 2 billion 98 million yuan, down 19.5% compared to the same period last year, net profit was 340 million 900 thousand yuan, down 27.1% from the same period last year.

Lining's operating income reached 2 billion 906 million yuan, down 24.6% compared to the same period last year. China's trend of business income was 563 million yuan, down 32.4% compared to the same period last year, net profit was 91 million 866 thousand yuan, down 5.4% compared to the same period last year.

in addition, PEAK realized operating income of 1 billion 173 million yuan, down 27.3% compared to the same period last year, and net profit was 89 million 900 thousand yuan, down 62.5% compared with the same period last year.

Compared with PEAK's semi annual reports since 2010, its net profit fell the most in the first half of this year.

In the first half of, the inventory of clothing products was larger than that of < a target= "_blank" href= "http://www.91se91.com/" shoes "/a" products, so the company offered special discounts to distributors on clothing products, resulting in the turnover of clothing products higher than that of footwear products, and the proportion of clothing products in total sales increased.

Net profit fell 65.5% in the first half of this year, and the highest in six major brands. P

According to the China Daily, the turnover in the first half of this year decreased by 30.4% to 1 billion 998 million yuan, gross profit decreased by 36.3% to 780 million yuan, and net profit was 205 million yuan, down 65.5% compared to the same period last year.

for this reason, the company explained that there was a big discount in the inventory of retail channels, which led to a weaker demand for new products and a sharp decline in the number of orders placed recently, resulting in a sharp decline in performance.

inventory less than 10% /p >

After the rapid development of the domestic sports brand, the overdevelopment of the traditional wholesale mode of the whole industry has led to the high inventory in the industry at present, resulting in a sharp decline in its performance. P

At present, sports brand stocks remain high.

from last year until the first half of this year, the main task of the six major sports brands is to digest inventory.

By the end of last year, China's movement, 31st, Anta, PEAK, XTEP, Lining and other 6 sports brand inventories totaled 3 billion 293 million yuan, by June this year, 6 sports brand inventories only dropped 8.02%, to 3 billion 29 million yuan.

This shows that in the first half of this year, fewer than 10% of the major brands were reduced.

some analysts believe that at present, several major sports brands are not competing for a better performance to some extent. Rather, they are going to inventory capacity, who will first clean up the stock to a reasonable level, so that the channel can be revitalized and who will be the first to recover in this low tide.

Although the stocks of major sports brands remain high, many companies have told reporters that inventory has improved and that the company's performance is expected to recover.

data show that as of June 30, 2013, the average turnover period of Lining channel inventory dropped from nine months to seven months, and total inventory dropped by more than 30%.

At present, Li Ning Co is trying to solve the problems of early overexpansion by optimizing the sales network.

in addition, Anta inventory dropped from 687 million yuan at the end of 2012 to 576 million yuan in the middle of 2013.

Ding Shizhong, chairman of Anta's board of directors, told the media that Anta will control the quantity of orders, and use e-commerce channels, factory stores and discount stores to help clean up the off-season stocks.

Anta's inventory has been almost cleaned up.

PEAK claims that it will continue to narrow its channels by closing retail outlets while clearing inventory at a low price strategy.

PEAK CEO Xu Zhihua [micro-blog] said in its interim results conference that the net interest rate of the company has improved from 5% at the end of last year to 7.7% in the first half of this year.

Due to the optimization of channel inventory in the first half of the year, the inventory pressure in the second half of the year is expected to decrease, and net interest rates in the second half of this year will continue to rise.

although many companies say that the inventory pressure has obviously decreased, it only takes time to digest, but how long it takes to digest inventory is unknown.

due to the rapid expansion of sports brands in the past few years, most companies have generated large inventories.

When these stocks can reach a reasonable level depends on the economic development.

"If China's macroeconomic trend is able to pick up in the past two years, and the level of consumer income rises, the speed of sports brand inventory will accelerate, and within two years, it can basically get out of the high inventory level, otherwise it will take three to five years."

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six major brands, 2249 stores,

factors such as declining performance and high inventory make a href= "http://sjfzxm.com/news/index_c.asp" > sports brand < /a > have to make large-scale decisions.

All inefficient stores with poor performance are included in the list.

This large-scale activity has continued since last year.

According to statistics, in the first half of this year, the number of Lining, Anta, PEAK, China trends, 31st, XTEP and six major brands closing stores totaled 2249, that is to say, 6 companies closed 12 stores a day on average.

data show that in the first half of this year, the number of Chinese brand stores decreased by 611, which was the largest in 6 sports brands.

"China's sales trend is lower than expected," said Zhao Xiao, an analyst at China Merchants Securities. KAPPA retail outlets dropped from 2009 in late 2012 to 1398 in June 30, 2013, a net loss of 611.

in the first half of this year, except for the number of stores in China, the total number of stores was 31st, 7826, 601, and the number of outlets was second.

in addition, the number of sales outlets of PEAK in the first half of this year was 6194, down 12.3% compared to the same period last year, closing 289 stores in the first half of this year, 7834 stores in the first half of the year, 263 in the first half of the year, and 7435 in the first half of the year, and 75 at the end of last year, the lowest in the Anta stores.

the industry believes that the blind expansion of enterprises or the decline in net profits, and too few retail terminals may also affect the operation of the enterprise capital chain.

Although the major sports brands in China have closed 2249 stores in the first half of this year, there are analysts who believe that the tide of local sports brands has improved.

"Compared with the past 5000 years, the local sports brand has begun to consciously adjust itself after swallowing the blind expansion, resulting in the negative consequences of passive shops."

in fact, the above sports brands do not delay the opening of new stores while closing stores.

The semi annual report shows that the total number of retail outlets for children's clothing products has increased from 1590 to 1678, of which 390 are located in retail outlets for adult products.

Thirty one degrees said that about 71.5% of the company's stores were located in three lines and smaller cities. The brand influence has been established and will continue to promote and develop children's clothing in the target market of three lines and smaller cities.

, Li Ning Co also told reporters that in the first half of this year, the company closed down a certain number of inefficient stores and opened a new efficient shop.

The closing of stores and rationalization of sales network have made great changes in the sales network.

"The company is very satisfied with the current store network.

It should be emphasized that the number of shops is not the most important, and the key is to improve the profitability of the shops. "

the company is not in conflict when opening stores.

The major sports brands are constantly closed down so as to save operating expenses and generally close down the less profitable stores.

And the new store wants to plan ahead in order to pre empt the industry recovery.

"The company's new stores often have obvious advantages in location, human flow and so on, and have great potential for development."

promising sports brand prospect

although in the first half of 2013, the performance of all major sports brands in China was overwhelming, most companies expressed optimism to reporters about the future of the industry.

Li Ning Co believes that in the first half of 2013, major enterprises in the industry took measures to solve the problem of overcapacity and declining profitability. It is expected that this situation will continue in the second half of this year.

"We believe that Lining has a successful plan. The downturn in the industry does not mean that all brands will fail. We will seize the opportunity to give full play to the potential of the company."

Lining responded to reporters in this way.

it is noteworthy that the performance of sports brands has already reached bottom and rebounded.

Taking Lining as an example, the gross profit margin in the first half of this year rose from 43.2% in the same period last year to 43.6% in the period, an increase of 0.4% over the same period last year, and more than 90% of dealers participated in the channel revival plan, and the average turnover period decreased significantly.

In addition, China's gross margin fell by 2.1% to 48.1% in the first half of this year, but the gross margin of KAPPA business in the Chinese region improved by 0.5% to 54.4% over the same period last year.

Ding Shizhong said that at present, Anta's new stores have increased by 20%, and the monthly sales rate has increased by 10% annually.

Now that the inventory problem has been solved, the company's goal is to resume growth in the same store sales this year, and strive for growth in all aspects next year. Anta is confident that it will become the first enterprise to go out of the bottom.

sports brand has basically completed the layout of the whole country based on the early development foundation, and has a good development prospect in the future.

At present, the profit margins are squeezed due to the low market demand and high inventory prices.

When market demand improves and the economic situation improves, the sports brand will regain its former vitality.

for the future of sports brand, Li Ning Co said that in the long run, we still have confidence in the growth potential of China's sporting goods industry.

The company firmly believes that China's sustained and rapid urbanization process, the increase of disposable income of residents, the consumer demand for better products and brands, the rising price of consumer goods and the participation of sports activities will provide more space for the development of China's sporting goods industry.