China'S Sports Brands Accelerate Transformation And Diversify

After experiencing the radical expansion of the past, sports Brand Company have been shrouded in the shadow of high inventory. However, compared to the situation of thousands of shops in 2012, the overall rhythm of sports brands slowed down in 2013, especially in the second half of the year. This is undoubtedly a good thing for the whole sports industry, and in order to better cope with the difficulties of the industry, the major brands have accelerated the pace of diversification, and the initial effect is also very significant. It is worth mentioning that, according to the annual report data, we can see that Lining, PEAK, Anta, XTEP, 331 degrees and so on. Sports Brand Company's performance will be improved as a whole.

Slowing down

For sports brands, the direct performance of weak performance is a large number of shops. Compared to the customs store in 2012, the number of stores in 2013 has been generally controlled within 1000, of which XTEP international stores are relatively few, accounting for 150. Nevertheless, it is too early for the industry to return to the Soviet Union. This year, XTEP intends to close 100 to 200 stores, and will continue to integrate channels in low operating areas, and seize the opportunity of other peers to shop, placing XTEP in the prime locations of some cities. According to the data disclosure, XTEP has taken the initiative to control the order quantity, which helps to prevent the continuous deterioration of inventory at the retail level. The company also expects sales to fall to fourth in the first quarter of this year.

According to incomplete statistics, Lining and PEAK have more than 3000 outlets. The total number of stores in PEAK has reversed the negative growth situation in the past year, an increase of 4 compared with the end of 2013. Its CEO also indicated that PEAK would no longer open shop blindly, but would focus more on improving the same store sales and improve its performance through the improvement of commodity quality and channel management.

Transformation effect is emerging.

Although the industry is overstock, there is still a big problem of price reduction, but Anta has implemented a "retail oriented" approach. Transformation And future orders will continue to grow until recovery. Company data also showed that the number of orders increased in the first three quarters of 2014. Today, Anta has achieved positive growth in orders, adjusted its channel recovery and improved its operational efficiency. The next step is to achieve positive growth as soon as possible.

PEAK sports's first quarter 2015 order meeting data showed that its sales in the second quarter of 2014 and the first quarter of 2015 were double completed. It is gratifying to note that orders for orders in the first quarter of 2014 and the first quarter of 2015 were 20% and 10% more than the same period, which is the four consecutive quarter of PEAK's orders added.

At the same time, Lining also focused on channel adjustment and efficiency improvement, and set up his own brand, focusing on basketball, badminton, training, running and sports life five core sports brands, or stripped of non core brands.

I have to say that brands are speeding up. Diversification Step up and speed up the market for children. Last year, Anta's children's stores reached 881, an increase of 48 over the previous year, while XTEP had about 300 retail outlets selling children's products, an increase of 150 over the previous year.

According to statistics, in 2013, the income of children's clothing products increased to 11.7%. The gross profit margin of XTEP's children's series and other products increased by 1.4% compared to the same period last year, and its revenue grew by 114.9% over the same period last year. Statistics show that children's products have thickened the performance of related companies.