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    Domestic Sports Brand Channel Reform Is Still In Labor Pains.

    2013/9/3 21:17:00 32

    Local BrandSports BrandChannel Reform

    < p > in the first half of the year, the performance of several major sports in China, namely a href= "http://www.91se91.com/news/index_c.asp" > clothing brand < /a >, was not satisfactory. "Loss or fall" became the key word of corporate earnings performance.

    According to the Beijing Business Daily reporter statistics, 6 listed domestic sports brand net profit decreased year-on-year, of which, Lining made a loss of 184 million yuan, compared with the net profit of 44 million 290 thousand yuan in the same period last year, is already the ice and fire two days.

    Although many garment enterprises claim to have exceeded expectations in the medium term performance, the reality is that the number of stores is still increasing, inventory problems are still serious, and the spring of sports apparel industry still seems to be out of date.

    < /p >


    < p > < strong > net profit > /strong > < /p >


    < p > data show that in the first half of, the net profit of the company decreased by 18.7% to 626 million yuan.

    Lining net loss of 184 million yuan, down 515.4% over the same period.

    PEAK's net profit decreased by 62.5% to 90 million yuan compared to the same period last year.

    China's net profit was 92 million yuan, down 5.2% from the same period last year.

    The net profit of 361 yuan was 210 million yuan, with a record decline of 65.5% over the same period.

    Finally, the semi annual report of XTEP is the first time in five years, a decline in revenue. Its first half operating income was 2 billion 98 million yuan, down 19.5% compared to the same period last year. Net profit was 341 million yuan, down 27.1% from the same period last year.

    < /p >


    < p > in the case of the overall economic recovery is weak and consumers' purchasing power is not strong, the net profits of garment enterprises have been declining for more than two years. During this period, enterprises have to choose a large area to save costs. In the first half of this year, though the number of clothing brands has decreased, the number is still huge.

    Lining closes 410 stores, Anta stores 273, PEAK closes 289 stores, and 361 points closes 601 stores. In addition, China's power shutting shop is 611.

    < /p >


    < p > 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.

    < /p >


    < p > in addition, for sports apparel brand, it has been regarded as the "a href=" http://www.91se91.com/news/index_c.asp "high inventory < /a > disaster area.

    In the first half of the year, the enterprises took the lead in selling inventory as a top priority.

    During the reporting period, Lining's inventory dropped from 919 million yuan at the end of 2012 to 841 million yuan in the middle of 2013.

    PEAK's inventory decreased by 50 million yuan from 390 million yuan at the end of 2012 to 340 million yuan.

    The inventory of 361 degrees also decreased by 20 million yuan from the end of 2012 to 460 million yuan, to 440 million yuan.

    But the industry generally believes that from the above figures, we can see that the overall decline in brand inventory is not large.

    < /p >


    < p > < strong > suffer overseas brand shock > /strong > /p >


    < p > when domestic brands have attributed their net profit reduction to objective factors such as poor economic environment, foreign sports brands are still relatively stable in China's second tier cities.

    < /p >


    < < p > > a href= "http://www.91se91.com/news/index_c.asp > > Adidas < /a > the two quarter earnings report recently showed that its net profit level increased by 4.1% to 172 million euros compared with the same period last year." this is mainly due to the Latin American market and the Greater China region's performance, which has set off the negative impact of the decline in Western European market performance ".

    According to another set of data, Adidas's sales growth in the Greater China region in the one or two quarter of this year has been maintained at around 6%, although this figure is lower than the 19% growth rate of the same period last year, compared with the domestic sports apparel brand, Adidas's growth is still very impressive.

    < /p >


    < p > as to why China's clothing brands are in a weak competitive position, Zhu Qinghua, a consultant of CIC light industry, explained that weak brand power is a bad job.

    "Horse race enclosure" and "big expansion" have become the real portrayal of sports apparel brands in China in recent years.

    Many domestic brands avoid direct competition in the first tier cities with Nike, Adidas and other international brands, and quickly layout three or four line cities, forming a scale advantage.

    However, from the perspective of competition, the market positioning of domestic sportswear brands is relatively low, and the brand image is not strong enough to compete with international brands.

    Zhu Qinghua said.

    < /p >


    < p > especially noteworthy is that this pattern of brutal growth in the three or four line cities has also brewed a high inventory crisis.

    "In order to further seize the three or four line market, sportswear brands frequently open new stores on the one hand, and on the other hand constantly increase production to meet the sales demand of new stores.

    The three or four line market is rapidly saturated in the expansion and competition of the sportswear brands, and the efficiency of single store stores has declined rapidly, and the clothing inventory has rapidly increased.

    Zhu Qinghua explained so.

    < /p >


    < p > another analyst pointed out that China's sportswear brand is homogenized and is lack of unique innovation in function or design. This is another manifestation of the weakness of local sports brand, and it also aggravates competition among domestic brands.

    "Many sports brands in China are rooted in the most active generation of post-80s generation. They have always catered to the" 80 generation "group, which has always been the same for four or five years.

    What companies do not know is that the pursuit of fashion, variety and personality has become the main force of social consumption. What they like has directly affected the direction of the clothing market.

    < /p >


    < p > according to the Beijing Commercial Daily reporter, in recent years, fast fashion brand is becoming the new favorite of the market. UNIQLO, H&M and other brands are everywhere in China.

    Under this pressure, the international sports brand is very helpless, Nike in the 2013 fiscal year ended in June 30th, its Greater China income decreased 5% compared to the same period.

    < /p >


    In order to compete for the market, Nike has also launched some products to expand the three or four line market in China. < p >

    "Since its main market is mostly in a second tier city, once its channels go down, it will be a new growth opportunity."

    One industry insider said.

    Obviously, this poses a new challenge to the domestic sports brand.

    < /p >


    < p > < strong > the local sports brand can not be warmer than /strong. < /p >


    After the half year press release, the enterprises were very optimistic. Both Anta and Li Ning Co indicated that the most difficult period of the industry has passed, and the channel has begun to restore confidence gradually. P

    < /p >


    < p > but on the other hand, in the eyes of many people in the industry, the channel reform of several big tycoons is still in the throes of pain. The domestic brands competition, including the homogeneity and serious competition, and the double-sided attack of the international big brands, will be difficult for the whole industry as of 2015.

    < /p >


    < p > Zhu Qinghua further analyzed that the domestic sportswear market is still in a state of oversupply.

    "Although the sales volume of clothing has been improved with the help of e-commerce and offline discount sales, it is also accompanied by a decline in the price.

    On the whole, the pressure on the sportswear brand to go stock is still large.

    At present, the domestic sports clothing brand is in the stage of de stocking, supply and marketing system arrangement, and channel network optimization.

    The recovery of the industry in the future will depend on the results of inventory and market demand recovery.

    < /p >


    < p > in fact, this industry pain period is not a good thing for the local sports apparel brand.

    There is a view of the industry that the rural areas can encircle the city, and domestic brands can see through the market rules in small cities, accumulate certain capital, and increase their investment in style design, function research and development, and then turn back to the second tier market.

    < /p >

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