Clothing Industry: A Difficult International Journey

In December 17th, Premier of State Council During his first visit to Serbia, Li Keqiang received a special gift from Prime Minister Wu Qiqi of Serbia: a PEAK trademark. Basketball clothes.

This is the No. 1 jersey of the Serbia national basketball team, and Li Keqiang's name was written in Chinese and English respectively.

Received from foreign Prime Minister Chinese brand The gift, Keqiang's surprise from the prime minister can be seen from the photo. But it can not be overlooked that China's sporting goods market is experiencing a low ebb.

This wave of market began to take a turn for the worse in 2011. All sports brands had a large stock backlog, many brands were gradually disappeared, and the brands that were still persisting were also faced with enormous operating pressure. In the domestic brand, PEAK's international marketing is farthest. PEAK's sales in 2011 were 4 billion 600 million yuan, while in 2013 it was 2 billion 600 million yuan. According to the annual report of the first half of 2014, PEAK's overseas revenue has exceeded 20% of its total revenue. It is estimated that overseas revenue will reach 600 million yuan this year.

But at the same time, a large number of sports brands still face losses, such as Lining [3.34%], who has dominated the Chinese sports brand for many years. In 2013, Lining's revenue was 5 billion 800 million yuan, but the profit margin was -2.9%. The owner's equity yield was -18.2%. Although the -77.8% had improved a lot in 2012, it still lost 169 million yuan.

This wave of industry downturn almost affects every sports brand. According to the analysis of a sports industry industry for many years, the sporting goods market in China before 2011 was a false prosperity because 80% of sales actually went into the channel and did not really enter consumers' hands. The deeper reason is that most of the revenue of Chinese sports brand comes from non professional goods, that is, the clothing of life. This part belongs to the "casual sports" casual wear, while HM, ZARA and other European and American leisure brands have entered the Chinese market in large numbers, leaving the domestic sportswear and Sportswear away from a large number of rivers and mountains, and sales have dropped at a draught. "After the whole industry transformation in 2008, people saw that the sporting goods industry has declined, but I think more than 80% of the sporting goods industry is a substitute for leisure products." The source said.

　　 PEAK group CEO Xu Zhihua believes that the decline in sales in the entire sector is a natural adjustment process. "Before 2011, China's sporting goods market was not a real sporting goods market," he said. After 2012, consumers gradually matured, and the degree of brand centralization increased, and many brands went out. Now the industry concentration degree is relatively high, some pseudo sports market will lose some, let sports return to sports.

However, the demand for professional sports products has not been matched up, because the demand for professional sports equipment has just started in China, and the consciousness of mass sports is still being cultivated. The market of China's professional sporting goods market has great potential in the future. However, the current market demand is limited to professional competitions, and the public demand is still sprouting up.

Compared with Nike, Adidas Such an international first-line brand, PEAK is a latecomer, all aspects are just beginning, internationalization has just begun. Moreover, in the current and foreseeable future, China is still the main market of PEAK, and its overseas expansion has not yet achieved substantial growth in sales volume. "I started working with PEAK last year. Last year in Slovenia, PEAK's sportswear sales amounted to 200 thousand euros. Rene Mlekuz, Slovenia's first time to attend PEAK ordering conference, said: "because PEAK sponsored Slovenia's national team, we knew the brand. However, at present, we are mainly selling PEAK products in the club. Next year, I am considering opening a special store. "

Xiong Wei, director of marketing department of the International Business School of the University of foreign trade and economics, believes that if the value of the brand is only a functional appeal, it is very hard to win the hearts of the people. Behind the brand is the transmission of values.

The export of Chinese clothing products in the past was mostly foundry production, and PEAK also started from Nike foundry. But in the international market, Chinese clothing [1.96% funds research and reporting products are called rare brands. The brand export of sporting goods industry is premature. Represented by the United States Basketball Culture In the sports products popular with European football culture, Chinese brands hope to stand on their feet and even export their culture. There is still a long way to go. "The internationalization of Chinese sports brands, I hope more enterprises will push together, and we hope that the government will have some better policies to support us." Xu Zhihua said, "my policy is not subsidies, but tax policies and foreign exchange control policies. Overseas expansion has all kinds of costs, profits must come back, and money must be spent in and out, and foreign exchange can not flow freely. In addition, there is no value-added tax invoice abroad, no way to get back to deduct, it is difficult for us to do accounts. Therefore, we still hope that we can get more support in these areas.