Sports Brand: Reality TV Boosts Usher In "Second Spring"

The sports brand that has long been bogged down in performance is overturning.

With the favorable policies and the hot sports environment in China, the performance of the domestic sports brands has warmed up.

After losing three consecutive years, Lining announced that he would turn a profit last year.

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And so on.

Affected by this, the listed companies in Hong Kong performed well last year, the highest increase of more than 50%.

Reporters noted that many recent brokerage researchers are also highly recommended relatively rare A shares sports brand.

It is worth mentioning that under the eyes of famous brands abroad, the challenges of local brands are enormous.

Reality TV boosts usher in "second spring"

The domestic sports brands are pulling down the labels of the past with real reports, such as "inventory control", "closing the tide", "declining performance" and "pformation difficulties".

A few days ago, the Li Ning Co announced that it was expected that the profit and loss of the company's equity holders would be roughly flat in 2015, and that the company would turn a profit in 2015, which was the first time that Lining had made a profit after three consecutive years of loss.

As a matter of fact, the sports brand that has improved its performance is not only Lining.

Anta also said that after two years of performance climbing period, the company's performance reached the highest level in history, achieving the goal of breaking billions of turnover in 2015.

XTEP's three quarterly report also showed that the average sales volume in the same quarter increased in the third quarter, and the order volume increased by 10% in the second quarter of 2016.

In addition, the growth rate of orders in the first quarter and the second quarter was 15% in the first quarter and 2016 in the second quarter. The increase in the number of orders in the third quarter increased by eight consecutive quarters, mainly due to footwear products, especially running shoes, comprehensive training and outdoor functional categories.

The order volume of PEAK sports in the first three quarters of 2016 increased by 10%-20% compared with the same period last year, continuing the steady growth trend.

In contrast, these listed companies in Hong Kong last year were also proud of their share price performance.

In 2015, Anta sports rose more than 55%, and the gains of 360 degrees, XTEP international and Lining were 40.4%, 34.5% and 10.8% respectively.

Journalists contacted by a Securities researcher analyzed that last year, the sports industry frequency policy heating policy, coupled with the rise of various events and the germination of national health awareness, made the domestic sports industry usher in the "second spring".

He believes that the development of mobile Internet technology has given birth to all kinds of sports and social activities. People are keen on drying sports in their friends' circles and making sports consumption extremely hot.

Guo Lian Securities Research Report also pointed out that the consumption habits of the Chinese consumption elite team are changing. GPS sports watches, tights and water bag backpacks have become the new necessities for the rich. The reality shows that star participation is mostly related to sports, such as running men, ice and snow miracles, and going to the skies.

Fierce tiger infested hot soup difficult to grab

In the industry view, the 2016 Olympic Games will once again stimulate the development of sporting goods.

Euromonitor, the consumer market authority, judged that by 2020, China's sportswear market will outstrip the luxury market, with two digit growth to 280 billion 800 million yuan per year, and the luxury market will grow to only 192 billion 400 million yuan per year.

Europe's sports apparel market will reach US $64 billion by 2020, compared to Europe's international sporting goods market.

Although the A share brand listed companies are scarce, reporters found that many brokerages in recent years are also highly recommended for the Pathfinder (300005, stock bar) and Sanfo outdoor (002780, stock bar).

According to the financial report, the three quarterly report of the Pathfinder last year achieved operating income of 1 billion 941 million yuan, an increase of 92.63% over the same period last year, and the net profit attributable to shareholders of listed companies was 147 million yuan, down 17.88% from the same period last year.

The net profit of the company does not match the revenue, mainly because the income tax expense of the parent company in the first three quarters of 2015 was prepaid according to the tax rate of 25%.

Sanfo outdoor is the only domestic company to focus on the comprehensive brand retail of outdoor products. The company achieved 206 million yuan and net profit of 10 million 900 thousand yuan in the first three quarters of last year, and the increase was 3.63% and -22.81% respectively.

But Zhang Heng, chairman of the board, firmly believes that the impact of the downside on the macroeconomic situation is a short time. In the long run, it must be a very good high growth industry.

The former researcher reminds us that the turning point of sports consumption industry is already in place, but the competition between domestic brands and famous brands such as Nike and Adi has always been at a disadvantage. Not every company can get the hot spot of the industry.

In fact, the international brand has long been the tiger.

It is understood that Adidas launched the "2015 way" strategy in 2010. The sales target increased by 45%-50% in 2015 compared with 2010. According to the data released recently, the "road to 2015" project has been completed, and the next five year "new plan" has been worked out in the five driving areas such as soccer, running, women, children and sports classics.

In 2015, the revenue of Nike Greater China reached $3 billion 67 million, which also increased significantly compared with the US $1 billion 742 million in 2010.