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    The Six Sports Brands Are Up To 3 Billion 100 Million Stores.

    2014/4/2 15:20:00 47

    SportsInventoryShop

    In 2012, the domestic sports brand went through a closed shop tide, and in 2013, it did not stop the pace of closing stores. It is reported that in 2013, the top six sports brands in China were over 3000 stores. According to incomplete statistics from the Securities Daily, the number of other 5 companies is over 2200 except for the number of shops in China.


    On the optimistic side, the performance of major sports brands has begun to show a gradual recovery. Analysis of the industry, the current sports brand enterprises have entered a rebound period, the industry is expected to enter the warmer period.


       Customs shop continues


    Since 2012, affected by inventory, the domestic sports brands have been caught in the cold winter. In order to reform the channels and digest the inventory, the shop trend has been staged in various sports brands. The number of six major sports brands of Lining, Anta, XTEP, 31st degree, PEAK and China has exceeded 3000, of which PEAK and Lining have more than 1000 stores in 2012. Following the closing of the store in 2012, the six major sports brands in China did not stop closing stores in 2013.


    According to the annual report, as of December 31, 2013, the number of shops in Lining regular stores, flagship stores, factory stores and discount stores was 5915, representing a net decrease of 519 compared with December 31, 2012. At present, Lining franchise stores and direct stores are in a state of decline. Lining said that the company will continue to carry out channel changes and increase investment in direct outlets.


    Compared to 2012, Lining's number of stores was reduced. PEAK, like Lining, also cut down on the number of stores in 2013. The company's annual report shows that in 2013, the number of retail outlets authorized by PEAK was 6012, representing a net decrease of 471 compared to the end of 2012. Compared with the 1323 net loss of PEAK retail outlets in 2012, the number of stores closed by PEAK and Lining is decreasing. This shows that the adjustment of domestic sports brands has stabilized.


    In 2013, the number of stores in the six major sports brands in China was the largest. In 2013, there were 7299 retail outlets for adult sports apparel, compared with 8082 at the end of 2012, with a net decrease of 783. XTEP has the lowest number of stores, the total number of retail stores in 2013 was 7360, and the total number of retail outlets in 2012 was 7510, with a net decrease of 150.


    It is worth noting that after the six major sports brands in China were continuously closed in 2012 and 2013, Anta's number of shops was ranked first in terms of the total number of shops opened today.


    The annual report shows that the number of Anta stores and sports life series stores is 7757, compared with 8075 in 2012, a net decrease of 318. Among them, the number of children's sporting goods stores is 881.


    Compared with the 5 companies mentioned above, China's trend indicates that the Chinese branch has 21 dealers and operates 1183 Kappa brand retail stores directly or indirectly. In 2012, there were 8082 retail outlets in China.


       6 companies stock 3 billion 100 million yuan.


    After the six major sports brands in 2012 were injured due to high inventory, even after digestion in 2013, the inventory of the 6 companies was still unable to digest.


    According to the statistics of the Securities Daily, in 2013, the inventory of six major sports brands in China, Lining, Anta, PEAK, 31st degree, China trend and XTEP, were 942 million yuan, 689 million yuan, 366 million yuan, 409 million yuan, 183 million yuan and 537 million yuan respectively.


    Lining's inventory is in the top place, which is closely related to Lining's early expansion. The annual report shows that in 2013, Lining realized a 5 billion 824 million yuan income, down 12.8% compared with the same period last year, and net profit loss of 390 million yuan, compared with the 1 billion 979 million yuan loss amount in 2012, the deficit area narrowed by 80.2%.


    For the reasons for the loss of performance, Lining, acting chief executive officer Jin Zhenjun said, first, the company invested some funds in dealing with the problem dealers; two, last year, the company invested about 600 million yuan of funds for new business and marketing promotion. A person close to Lining has said that most of Lining's dealers have completed the clearance process, and some are handling the inventory.


    Similarly, Ding Shizhong, chairman and CEO of Anta's board of directors, also said publicly that we basically cleared up inventory in 2013. We can say that the most difficult period of clothing industry since 2012 has passed.


    However, Anta has doubts about the inventory problem of the industry. The company believes that some enterprises still have inventory problems, and the homogenization of brands and products has not been fundamentally resolved in the current round of industry adjustment. Sporting goods industry is still facing great challenges.


    {page_break}


       Industry shuffling is around the corner.


    According to the annual reports disclosed by the major brands, the performance of the other 5 companies has not yet increased except for the net profit growth of China's trend in 2013, and the performance of the other companies has dropped by nearly 70%.


    Although sports brand performance is not ideal, but analysts pointed out that careful analysis of the various earnings reports can be found that each brand's order 2014 orders have shown signs of bottoming out, which is one of the most important data in the industry to measure corporate performance and industry rebound.


    Data show that Anta's three consecutive quarter of 2014 orders showed positive growth, XTEP, 31st orders decline narrowed, PEAK achieved double-digit growth in the third quarter.


    However, the analysts pointed out that the industry's warming does not mean that the adjustment of the industry has ended. The concentration of China's sporting goods industry is relatively low. The rise in orders of some enterprises can not hide the fact that the second tier and three line brands are still struggling.


    It is understood that the current Chinese market has nearly 30 well-known sports brands in competition, coupled with unknown brands, hundreds of sports brands compete for the market.


    In response, Zhang Tao, vice president of Anta, said at an industry conference that the industry concentration had been improved, and a few excellent companies occupied most of the market share. This is the process that the industry must go through when it becomes mature. With the deepening of industry adjustment, good enterprises will be better. Some enterprises without core competitiveness will be eliminated.


       Industry rebound


    At present, the domestic sports brand industry pattern has already appeared the obvious change. From the annual reports released by the major sports brands, Anta's turnover in 2013 was 1 billion 500 million yuan more than that of Lining. At the same time, Anta achieved more net profit than Lining, XTEP, PEAK, and 331 degree four companies. This shows that Anta has benefited greatly from this great change in the industry. It is worth noting that in the financial market, Anta's market capitalization exceeds that of Lining, XTEP, PEAK, and 31st four.


    "Anta can surpass its competitors in the adjustment period of the industry and stabilize the industry first, because Anta is willing to innovate and dare to transform." An industry expert said that after the current round of adjustment in the sporting goods industry, the scale of competition and the number of shops will become a history. In the future, the sporting goods industry will enter a period of innovation.


    Anta believes that the popularity of sports is getting higher and higher, the economy is developing and the national income is higher and higher. Ding Shizhong, chairman and CEO of Anta sports director, also said: "the sporting goods industry will always be a sunrise industry."


    For the future of the sporting goods industry, PEAK sports CEO Xu Zhihua has publicly stated that the winter of the sporting goods market is past and is accelerating. While the net profit in the past two earnings cycles has increased significantly, PEAK's second quarter and third quarter 2014 orders continue to grow, indicating that the industry is getting stronger and stronger.


    Anta believes that with the deepening of the transformation of the retail industry, Anta's performance will be better and better. When to return to 2011, we need to look at the overall economic environment and market environment.


    However, both Lining and Anta are worried about the current homogenization of the industry. They believe that the key issue that the major brands need to solve in the future is the homogenization of brands and products. To this end, Lining continuously launched technology cards, launched "Li Ningyun", Anta also introduced such as soft columns and other unique technology products.


    The path of the differentiation of the major sports brands will go elsewhere. At present, it is impossible to say that only through market tests can we see who will come to the end.

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