Sports Brand: Industry Income Goes Out Of The Trough, Brand Concentration Will Increase.

After high storage and other business pressures, China

The days seemed to be getting better.

In March 22nd, the Kappa brand parent China trend released its 2015 annual performance report. The report shows that after a 4 year continuous income survey, its performance has finally bottomed out.

At this point, the mainland's leading brands of sports brands listed on Hong Kong stocks are already available.

,

, 361 degrees, PEAK and Lining and other successive releases of performance bulletin, ushered in the mainland manufacturing industry's "start".

For sports brand performance reversal in 2015, the key way, CEO Zhang Qing, a sports consultancy company, told reporters that the recovery of the sports brand belongs to the recovery of the whole industry, benefiting from the initial pformation of the speed of national urbanization and the completion of channel control by enterprises.

Industry income goes out of trough

According to the announcement, China's trend revenue increased by 16.4% from 2015 to 1 billion 469 million yuan in the year of Kappa, and the income of China's Kappa brand increased 25.8% to RMB 1 billion 30 million yuan.

After the peak of income reached 4 billion 260 million yuan in 2010, the Kappa brand parent company's China trend for the first time in the past 4 years after its earnings came down.

However, China trend company's net profit in 2015 was 803 million yuan, down 12.2% from last year.

China's trend is that in 2015, the total retail sales of social consumer goods increased by 10.6%, and with the support of national and local policies, social capital and industry began to set foot in the sports industry in 2015.

The group has replaced some inefficient shops, improved the quality and efficiency of sales channels, and effectively improved the profitability of retail outlets.

China's trend indicates that the mainland sports brands including Anta, XTEP, 361 degrees, PEAK, Lining and other mainland sports brands have released 2015 annual results, including Anta's revenue of 11 billion 126 million yuan and the growth of 24.7% over the same period.

In addition, XTEP, 31st degree (2.41, 0.02, 0.84%) and PEAK business income were 5 billion 295 million yuan, 4 billion 459 million yuan and 3 billion 110 million yuan respectively, and net profits were 478 million yuan, 518 million yuan and 390 million yuan respectively.

Lining also realized losses, earning 7 billion 89 million yuan, an annual growth of 17%.

In this regard, the key Road Sports Consulting Co., Ltd. CEO Zhang Qing believes that China's sporting goods in 2015 is an industrial recovery.

In addition, after more than three years of reform and pformation, the new channel construction and product structure have been further studied, and the performance of these listed companies has been changed.

Brand concentration will increase

So, for these sports brand enterprises, how did they achieve profits? What did they achieve by the year-on-year growth?

As for the growth of Kappa brand revenue in China, the trend of China indicates that, in terms of brand and product, the group caters to the consumers' preferences and needs to lock in the target consumer groups while strengthening the brand image.

In addition, in the retail sector, the group's e-commerce has been successfully pformed, and the network sales no longer go to the target of inventory, but instead of the new products for the new season. In the 2015 "double eleven" activities, the sales of electronic commerce increased exponentially over the same period last year.

The sales of Anta, which is worth tens of billions of dollars, has 2015 pairs of sports shoes and 40 million of the total number of sports shoes, with a global market share of about 13%.

In addition, the group executive director Lai Shi Xian analyzed that the growth of FILA and e-commerce business was the fastest.

As Anta's high-end brands grew rapidly, FILA stores in the mainland, Hongkong and Macao reached 591, and it is expected to reach 650 to 700 by the end of 2016.

According to the financial report, XTEP's innovation in 2015 helped the group's revenue grow to 10.8% yuan to 5 billion 295 million yuan (4 billion 777 million 600 thousand yuan in 2014).

Demand for professional sporting goods higher in XTEP's brand profits increased, making gross margin rise 1.4 percentage points to 42.2% (40.8% in 2014).

Zhang Qing said that for these listed companies, how to maintain sustained and steady growth of performance needs to inject more sports connotation into the products, while some three line brands will be eliminated further, and the market concentration will be further improved.