2014 Shoes And Clothing Interpretation Of Internal Control Stabilized Sports Goods Back To The Right Track

In the middle of this year, the listed companies' reverse performance reports also showed the strong self repair ability and market potential of the domestic sporting goods industry.

As Ding Shizhong, chairman and chief executive of Anta, said, "the sporting goods industry is still faced with factors such as product homogenization and fierce competition in the short term, so there is uncertainty.

However, as urbanization continues and the proportion of urban population increases, it will help to promote sports demand, and urbanization will increase public incomes, and there will be great potential for the sporting goods market in the future.

In the first half of this year, in addition to the "new" birds, Anta, Lining, XTEP, PEAK, 361 degrees of revenue were recorded positive growth, the highest growth rate of Anta increased by more than 22%, compared with last year, the overall implementation of the reversal.

Behind the boom of revenue, several enterprises reported the effectiveness of retail pformation in their performance reports. After three years of pformation from wholesale to retail, several enterprises basically completed the supply chain reform and the pformation of business models.

After closing a large number of poor performance stores, the overall sales system of enterprises is also healthier.

From the first half of the data, these enterprises have basically completed the pformation of the terminal, and the large-scale closing shop tide has ended. While closing down a few loss shops, the number of shop opening in flagship stores, boutiques and children's wear shops is also increasing.

In contrast, the situation of the "noble bird" is very special, because it is the last time that several enterprises are listed on the market, and the pformation speed of the system is slower.

You will continue to focus on retail management pformation in the second half of the year, improve the depth of operation in the three or four line market, and absorb franchisees in the layout of e-commerce channels and try O2O operations.

At the same time, it will continue to adjust the company's market system, and plan to shut down 100~150 stores in 2014.

In addition to revenue, the six companies

Anta, PEAK and 361 degrees have taken the lead in achieving a positive growth in net profit.

Besides the oversupply of the market and the reduction of the discount rate, an important factor is the more precise control of the cost.

Taking 361 degrees as an example, sales and distribution costs decreased by 3.3% to 345 million yuan in the first half of the year, and administrative expenses decreased by 3.1% to 147 million yuan.

Despite the decline in net profit, the average bird declined significantly compared with the two digit decline in the first quarter of last year, largely thanks to the meticulous management within the company and the cost savings.

In the first half of the year, the bird launched a retail oriented pformation and upgrading, adjusted the advertising strategy, reduced the more expensive "air advertisement", and increased the relatively low price of "ground advertising", which reduced advertising costs accordingly.

At the same time, in the context of the reduction of new terminal stores, the brand promotion fees supported by the franchisees were reduced, resulting in a reduction of over 4600 yuan in the first half of the year.

In the first half of the year, Lining lost nearly 600 million of his profits. The cost of sales in the first half of the year was more than 1 billion 700 million, and the administrative expenses were nearly 500 million yuan.

In terms of administrative expenses, it accounted for 16.8% of Lining's brand income, up 12% from the same period last year.

Lining attributed it to a large number of Direct stores in the first half of this year, which led to a substantial increase in the cost of sales and labor costs. At the same time, many new experienced managers were recruited, which was also one of the reasons for the rise in administrative costs.

Judging from the amount of inventory in the first half of the year, six sporting goods enterprises are increasing without exception, and the stock barrier has not been completely driven away.

Among them, the highest inventory of Lining reached an astonishing 1 billion, and Anta and XTEP also had about 700 million inventory.

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In the higher case, XTEP said it was mainly due to the expected recovery of the industry in the second half of the year and the increase in finished products. By June 30th, the proportion of XTEP finished products to total inventories was 68.6%, which is basically the same as that of the same period last year.

Due to the increase in the average balance of storage and inventory, the turnover of inventory also increased by 8 days compared with the same period last year.

Ding Shizhong, chairman of the board of directors of Anta and CEO, have a more optimistic view of inventory. Ding Shizhong thinks Anta's inventory is at a healthy level, and its stock is too small. Too low inventory will affect sales.

Shoes and garment industry analyst Ma Gang believes that the pformation of the sports brand's delivery mode during the pformation period is also an important reason for pushing up the stock.

According to the previous "futures system", the enterprise will give all the 100% orders to the dealers in accordance with the deadline. But now the sports brands are trying to change, adopt mixed methods, and do not deliver all the goods. Through the prediction of the market, the 20%~30% goods will be left in their own warehouses to replenish the whole country.

"Obviously, this mode is bound to increase the inventory of enterprises."

Ma Gang said that since 2009, after four or five years of shuffling, some small sports brands have already withdrawn from the market, and six companies have also closed their stores on a large scale. The oversupply of sports goods market has gradually eased, and the domestic sports goods market has been basically established.

But in the long run, we must be alert to the harbinger of stock inflation.

Although in the current performance report, children's wear, outdoor products and e-commerce contribution data are still not obvious, but in the trend of view, these three parts have become the main direction of the six major sports products and channel expansion.

At present, there are 987 Anta children's sporting goods stores, 176 more than the end of the year, 361 children's children's clothing as an independent business, and 1965 children's clothing stores now. Lining has entered the children's clothing market with a brand-new management team and brand logo, and has released the development plan of Lining's children's clothing for the next 5 to 10 years. XTEP has also poured a lot of effort into the children's clothing, not only with the CCTV children's channel, but also sponsoring the children's programs of many TV programs.

"Despite the slowdown in the integration of China's sporting goods industry, the business environment is still challenged by the fierce competition in the industry and the homogenization of products.

However, as a strong industry with core brand value, we can overcome challenges and seize new market opportunities such as e-commerce and children, thus achieving stable financial performance.

Ding Shuibo, chairman and chief executive of XTEP, affirmed the contribution of children's clothing and electricity supplier in the first half of the year. In the early August 2014, the outdoor series XUP was launched to enrich the product supply of its e-commerce business.

In terms of electronic commerce, the six major brands in addition to operating their own official websites are also widely cooperating with famous electronic business platforms such as Tmall, Jingdong, Dangdang, and 1 stores.

"Although the proportion of e-commerce revenues to the total sales revenue of the group is still low, the growth rate is very fast.

At present, online sales are dominated by new and high-end products, so customer average consumption and gross margins have maintained a relatively high level.

PEAK CEO Xu Zhihua said that with the further improvement of the Internet and the penetration of mobile Internet, e-commerce will be one of the main platforms for setting up brand and product image, and will be an important part of the development strategy of the company in the future.

In addition to sniping international brands locally, the six brands are also accelerating the internationalization process.

Anta's distributors have spread throughout Southeast Asia, Eastern Europe and the Middle East market. It is reported that Anta is actively looking for suitable overseas companies to buy and buy. XTEP group opened its XTEP brand store in Spain in March 2014. Now it has more than 200 sales outlets in the Middle East, Central Europe and Western Europe, and 361 degrees slower. In the Middle East, South America and Southeast Asia, 39 stores have been opened, and a Brazil branch has been set up. It plans to cooperate with the Brazil Olympic Committee, and will play a big role in the 2016 Olympic Games.

PEAK, which has more experience in internationalization, has entered the stage of speeding up.

PEAK promotes PEAK to become an international and professional brand by launching sports products with superior functions and superior performance, and co operating with internationally renowned athletes and event organizers.

PEAK, with its success in basketball, has launched a new market strategy. In addition to continuing to focus on basketball, it also focuses on developing two sports of running and tennis.

In the first half of the year, PEAK has 24 spokesmen for International Women's tennis, signed an endorsement agreement with 10 NBA players, and sponsored three NBA teams. It also signed sponsorship agreements with eight national basketball associations such as Australia, Serbia and Germany.