PEAK Leads The Recovery Of Other Sports Brands In China

China in cold winter Sports goods The market has finally welcomed a warm current. According to the latest PEAK sports 2014 second quarter order meeting data and the third quarter 2013 sales statistics report, PEAK 2014Q2 (second quarter) orders and 2013Q3 (third quarter) same store sales growth simultaneously. Analysts at Credit Suisse, an international investment bank, said: "PEAK's worst moment has passed."

This marks the first time PEAK has stepped out of the winter market of sporting goods, leading the industry to recovery. PEAK sports CEO Xu Zhihua said: "this is mainly due to a series of effective reform measures in the past two years, including strategic focus, channel segmentation, upgrading of products and R & D, etc. it is estimated that next year will be the recovery year for PEAK."

The worst is over.

According to PEAK business routine "Recent China business operation bulletin", the total order volume in the 2014 second quarter was higher than the actual sales in the same quarter in 2013. This reflects that PEAK's distribution channel has greatly increased its de stocking capacity, and its inventory has been greatly reduced, which has stimulated distributors' demand for goods. At the same time, PEAK Q2 2014 will also show the company's excellent product development capability. According to the trend of sporting goods market, relying on professional innovation and technology, it will launch a new theme series of NBA and FIBA. In the field of football, comprehensive training and other fields, more products that meet consumer's fashion concept and needs are also developed. Products that are leading the trend, with higher technology content and huge sales potential are easier to get the favor of distributors and consumers.

The announcement shows that another growth point came from the comparison of the same store sales in the third quarter of 2013 and the same quarter in 2012, which recorded a low growth in unit number and a distinct improvement in the profitability of single stores in 2013. This small increase can be attributed to the gradual reduction in the discount rate of consumers supplied by PEAK in the third quarter of this year and the diminishing scale of inventory promotion. This also means that PEAK's inventory digestion is coming to an end, and the distribution of new products will become the main theme. On the other hand, PEAK's protection of brand value and the market pull brought by brand marketing are also considered as one of the factors for PEAK's turnover growth.

In November 21st, after in-depth communication with management on operational data, Credit Suisse reported that PEAK's latest operating data were pleasantly surprised, and its business continued to recover moderately. "I believe that with the return to normal level of inventory, the profitability of distributors will be enhanced, PEAK industry can maintain a moderate recovery, and management at the analysts' conference is more optimistic about the prospect of operation than before."

In fact, PEAK has long been a precursor to the recovery of other sports brands in China. PEAK's 2013 semi annual report, which was released not long ago, showed that in the first half of this year, PEAK took the lead in stopping orders. Net profit has rebounded for the first time since 2012, up 28% from the second half of 2012, and the proportion of overseas market also increased from 13.4% in 2012 to 14.8%.

　　 "PEAK style" reform has made fruitful achievements.

"PEAK rate before the industry to achieve warmer is not accidental." A sporting goods industry analyst said PEAK was one of the first sports brands to adjust to the market downturn. "For early changing markets, early adjustment means early harvest."

Since 2013, PEAK has continued to upgrade its brand, accelerating its internationalization and specialization and increasing its added value. At the beginning of the year, NBA star Toni Parke was signed. Parke was a hot competitor of NBA in MVP. After that, she led the team in the European Championship and won the MVP. This summer, the two wave pick NBA Star China trip, PEAK brand and NBA players were widely reported in the media, and NBA's widely praised Star Wars boots were also touted.

Meanwhile, Peak Through the adjustment of business mode and the continuous optimization of channels, the enthusiasm of distributors has been mobilized. Since the order began in the third quarter of 2013, PEAK changed its order mode, which increased the reliance on the invoice and greatly reduced the inventory pressure of distributors. In the same period, PEAK continued to promote channel optimization, opening larger retail outlets through distributors and retail outlets, and closing more smaller and less efficient retail outlets. By the end of June 2013, the number of PEAK distributors has increased to 63, and the sales area of individual retail outlets has increased to 88.6 square meters.

In addition, products are the foundation of enterprises based on the market, and PEAK products, which are endowed with more scientific and technological connotation and fashion elements, have won the market's favorite. At present, PEAK has more than 40 sports technology patents, and the PEAK style is more vivid. Parke's "TP9" boots, which are equipped with PEAK's new "gradient kinetic energy technology", sell for more than 90 euros in the European market. PEAK's "Battier eight generation" also caused a sensation in the fans group. Professional sneaker began to compare PEAK with world-class brands. PEAK's NBA star boots were sold out. As Battier eight generation, Parke generation, and lightning two generation, hurricane two generation have been listed in full swing, PEAK professional basketball. shoes It will trigger a new season of panic buying.

"Brand upgrading, channel upgrading and product R & D innovation will be the three driving force for China's sports brand to continue to grow for a long time in the future." Xu Zhihua said that with the the third Plenary Session of the 18th CPC Central Committee tone more emphasis on "making the market play a decisive role in the allocation of resources", China's economy will burst new vitality, which is a new opportunity for PEAK, which is aiming at internationalization. "I have already smelled the smell of spring."