Sports Brand Performance Gains New Opportunities

In October last year, the State Council issued the "opinions on speeding up the development of sports industry to promote sports consumption" (hereinafter referred to as "opinions"), and the total scale of sports industry reached 5 trillion yuan by 2025.

For domestic sports brands, this policy can be seen as an engine for the market.

The performance of Listed Companies in many industries may indicate that the two take-off of the market is coming.

Following the announcement of Anta's first 2014 performance in February, PEAK and PEAK delivered the 2014 performance papers in March 10th and yesterday (March 11th) respectively.

The reporter noted that Anta's revenue grew by 22.5%, net profit increased by 29.3%, and the turnover of 360% was 3 billion 906 million yuan, up 9% compared with the same period last year, with net profit of 398 million yuan, up 88.2% over the same period last year.

PEAK's performance has also been commendable. Its turnover has increased by 8.7% to 2 billion 841 million yuan, and net profit has increased by 31.3% to 321 million yuan.

With the popularity of these three brands in the past year, the industry believes that the two growth of the sports apparel industry is coming.

However, in the view of the industry, the revitalized local sports brands need to be on guard against competition from international giants.

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The 31st degree data show that the product orders in winter 2014, spring / summer and autumn in 2015 increased by 8%, 11% and 16% respectively.

The reporter noted that when the annual performance was announced last month, Ding Shizhong, chairman and CEO of Anta's board of directors, said that Anta had realized the growth of the order amount for 7 consecutive quarters, and the goal of 2015 was to break tens of billions of revenue.

PEAK chairman Xu Jingnan pointed out that the total amount of orders in the third quarter of 2015 was double digit growth year by year, which is the sixth consecutive quarter of the increase in the amount of orders.

In fact, inventory has always been a pain spot in the sports brand industry, and the problems such as the decline of gross profit and the decline of brand value have been emerging one after another.

At present, this problem has been basically alleviated.

Ding Huihuang, chairman of the board, pointed out that the retail discount has also narrowed with the normal stock level in stores.

However, it still stressed that if companies increase production again, the industry will oversupply again.

"I hope that the industry has learned from past experience."

2014 was the year when China's sports apparel industry began to recover after several years of downturn.

With the popularity of sports brands such as Anta, PEAK and PEAK last year, the industry believes that

The two growth is coming.

However, it is not just the local sports brand that sees the dividend of opinion.

In March 9th, Gao Jiali, director general of Adidas Greater China, told reporters that he welcomed the policy put forward by the Chinese government to promote the development of the sports industry.

Data show that Nike Greater China 2014 fiscal year (up to May 31, 2014) to achieve revenue of $2 billion 602 million, Adidas Greater China 2014 fiscal year (end December 2014) to achieve revenue of 1 billion 811 million euros.

"In the three or four tier cities, local brands have natural advantages and prices are more close to the people.

However, the preferences of consumers in this part of the market are also changing. The emphasis on sports lifestyle makes them pay more attention to products besides price, and international brands may be more attractive in this respect.

A sports industry analyst said.