The Domestic Sports Clothing Industry Is Warming Up In Jinjiang "And" Lining "Is In The Opposite Direction.

In the face of the continued weakness of the domestic sports apparel industry in the past, and now that the industry is getting warmer, Lining has realized turning losses into profits. Lining has chosen to expand stores in the direction of development, while Jinjiang products have chosen to optimize their store structure.

Domestic sports Clothes & Accessories Signs of warming are evident. Since mid March this year, domestic brands Lining listed in Hong Kong, Fujian, Jinjiang sports brand Anta, XTEP, 31st degree, PEAK and so on have shown the 2015 earnings report, and the domestic A share Pathfinder has also released a performance bulletin. From the earnings data, each household's income and net profit have been improved. Lining has made a successful turnaround, but is still lagging behind in terms of inventory and turnover efficiency. In terms of the number of stores, Lining expanded the store for the first time, and Jinjiang sports apparel enterprises such as Anta continued to close stores to optimize the store structure.

Since 2015, the outbreak of sports industry has led to the growth of sports apparel enterprises, which has been in the doldrums for the past three years. In terms of industry, the apparel industry is in a period of adjustment, and the market concentration is becoming more and more high. Since last year, the trend of fashion has been biased towards sports and leisure.

Anta first broke through 10 billion mark in 2015. According to its 2015 earnings report, its operating income was 11 billion 126 million yuan, an increase of 24.7% over the same period last year. Net profit of 2 billion 697 million yuan, up 33.6% over the same period last year. Gross profit margin was 46.6%, up 1.5% from 2014. Anta management attributed its growth to its brand portfolio to meet differentiated demand and occupy the mass market.

For the first time since 2011, the Lining group has been able to turn losses into profits. According to the 2015 earnings report released by Lining group in mid March this year, the revenue was 7 billion 90 million yuan, an increase of 17% over the same period last year. Net profit from 781 million yuan to 14 million 300 thousand yuan profit, an increase of 101.83% over the same period. Gross margin remained at 45%.

XTEP earned 5 billion 295 million yuan in 2015, an increase of 10.84% over the same period last year. Net profit of 921 million yuan, an increase of 13.89% over the same period. Gross margin remained at 42.2%, an increase of 1.4% over 2014. In 2015, XTEP introduced the "3+" strategy, namely product + sports + and Internet +, and launched the "sports + entertainment" dual marketing strategy. A total of 17 large marathon competitions were held throughout the year, accounting for 1/3 of the domestic marathon.

In 2015, revenue reached 4 billion 459 million yuan, an increase of 14.14% over the same period last year. Net profit of 915 million yuan, an increase of 26.3% over the same period. Gross margin remained at 40.9%. The children's clothing has been operating by the independent department in the past six years, and the income has continued to grow. In 2015, it increased 16% to 589 million yuan, accounting for 13.2% of the group's revenue.

PEAK's revenue in 2015 was 3 billion 108 million yuan, up 9.4% over the same period last year. Net profit of 392 million yuan, an increase of 22.32% over the same period. Gross profit margin was 38.7%, up 0.7% from 2014. It is worth noting that PEAK's overseas market sales have also maintained an industry leading position of 672 million yuan, accounting for 21.6% of turnover. In contrast, Lining accounted for only 2.2.% of overseas market revenues.

Pathfinder is expected to disclose its annual report in April 23rd. According to its annual report is expected to disclose, its revenue in 2015, 3 billion 760 million yuan, an increase of 119.20% over the same period. Net profit of 299 million yuan, down about 2.64% year-on-year. With the further increase of market competition pressure, the gross profit level of outdoor products is lower than that of the same period last year.

Pathfinder has begun a comprehensive transformation in the first half of 2015, from the original operation and management of outdoor sports brand to the transformation and layout of "outdoor + tourism" ecosystem. In June 5th, the company set an increase of 2 billion 100 million yuan for comprehensive transformation. Its annual report is expected to disclose that during the reporting period, the company effectively promoted the construction of the outdoor ecological circle of the Pathfinder, and initially completed the strategic layout of the coordinated development of outdoor business, travel service and three major sports groups.

　　 Anta's performance is broken by billions of Lining.

In the post Olympic era from 2008 to 2009, the domestic sports brand developed rapidly, and the compound growth rate of the whole industry reached 20%-30%. From 2010 to 2011, the sports industry bubble disappeared, but the early expansion led to high inventory of various brands and sharp decline in industry profits. From the net profit point of view, Anta still maintained a slight increase from 1 billion 520 million yuan to 1 billion 730 million yuan. Lining net profit fell from 1 billion 108 million yuan to 386 million yuan, or 65.2%. From 2012 to 2014, Li Ning Co's performance has been in a state of deficit. The losses in three years were 1 billion 979 million yuan, 392 million yuan and 781 million yuan respectively, totaling over 3 billion 100 million yuan. Since then, Anta and Lining have split up.

In 2015, Lining turned around for the first time. Lining management analysis, first of all, because of the dealer's order, the order tag price increased year by year, sales of all categories have been improved, including sales of running and basketball products are particularly significant. Orders for the third quarter of 2016 will be increased by 10% to 20%.

Secondly, Online retailers Business grew rapidly, and its sales increased by about one year. Lining's two main sales channels, namely, the franchisee and the direct channel, account for a decrease in total revenue compared with 2014. Although electricity channel revenue accounts for only 8.6% of total revenue, it is 3.7% higher than that of 4.9% in 2014. In the rapid development of the electricity supplier, Lining actively promoted the O2O strategy: to promote the integration of full channel inventory, and open online sales to distributors and authorize network sales outlets.

Starting in 2013, Anta, whose revenue continued to grow, broke through tens of billions of revenue in 2015. Anta management attributed its growth to the multi brand portfolio to meet differentiated demand and to occupy the mass market. Specifically, for the mass market, Anta provides cost-effective sports products. In 2014, Anta became a NBA official market partner and NBA authorized provider to further enhance brand awareness. At the same time, Anta has established a nationwide distribution network and has absolute advantages in the two or three tier cities. Since 2008, Anta has launched the first sporting goods for children. Its FILA, a high-end brand for the high-end market, collaborated with well-known designers to optimize the design, and only opened in the first tier cities and major second tier cities, mainly shopping centers and department stores.

　　 Inventory and turnover improved. Lining is still behind.

The inventory and turnover efficiency of sports brands reflect their inventory pressure and the efficiency of sales channels. From this perspective, although Lining's inventory pressure is reduced, the efficiency of sales channels has improved, but it is still not as good as Jinjiang, XTEP and other Jinjiang brand.

In 2015, Lining's average stock turnover time was 100 days, which was 9 days shorter than that in 2014. The average number of days of receivable trade turnover was 69 days, which was 10 days shorter than the same period. In Lining's current assets, inventories in 2015 amounted to 1 billion 129 million yuan, down 37.64% compared with the same period last year, and the provision for inventory reduction was 170 million, down 55.29% from the same period last year.

Anta's average stock turnover in 2015 was 58 days, unchanged from 2014. The average number of days of receivable trade turnover was 33 days, which was 35 days shorter than the same period. Of Anta's current assets, 2015 of inventories amounted to 1 billion 16 million yuan, an increase of 17.19% over the same period last year, and inventories of 595 million yuan were sold, an increase of 20.2% over the same period last year, and the provision for inventory reduction was 9 million 810 thousand, down 83.28 from the same period last year.

Combined with other Jinjiang brands, compared with the same period in the previous two years, XTEP's stock turnover days continued to decrease to 58 days in 2015, 71 days in 2014 and 79 days in 2013. In addition, XTEP's inventory level decreased by 30% to about 398 million yuan in late 2015 compared with the end of 2014. PEAK's inventory turnover in 2015 was 63 days, 74 days in 2014 and 81 days in 2013. The turnover days of the inventory increased continuously, but still less than that of Lining. The stock turnover days in 2015 were 78 days, 77 days in 2014, 73 days in 2013, and 56 days in 2012.

　　 Lining expands sales outlets, "Jinjiang Department" continues to reduce stores

After experiencing the plight of high channel inventory, local sports brands have transformed from the traditional wholesale mode to the retail oriented rapid response business mode. Different from the closing shop trend in -2013 in 2012, the strategies adopted by various families differentiated in 2015: Lining expanded the sales outlets for the first time since 2011, cut down wholesalers' sales points and increased the proportion of Direct stores. The number of stores in Anta and XTEP continued to decrease, and the store structure was further optimized.

According to Lining's earnings report, as of December 31, 2015, the sales volume of Lining brand (including LNG and spring label) regular shops, flagship stores, factory stores and discount stores was 6133, a 507 increase over December 31, 2014. 56 dealers, a net increase of 5 compared to December 31, 2014. Dealer sales point increased by 194. This is the first time that Lining has expanded the sales network since 2011.

The net number of stores in Jinjiang is still decreasing, and management says its store structure is constantly improving. By the end of 2015, the number of Anta stores, Anta children sporting goods stores and FILA stores was 7031, 1458 and 591 respectively. At the end of 2014, the number was 7622, 1288 and 519 respectively. In this regard, Anta management said that the quality of shops (i.e. location, size, store decoration, etc.) is more important than the number of shops. In 2015, Anta continued to turn off smaller and less profitable shops, while continuing to develop larger and attractive shops in the superior zone. It is estimated that by the end of 2016, the total number of Anta stores, Anta children's stores, FILA and FILA KIDS stores will range from 7000 to 7100, 1700 to 1800 and 650 to 700.

At the end of 2015, XTEP's brand retail store was about 7000, 110 less than in 2014, and the total number of sales outlets for XTEP children was about 600, down 100 from 2014.

　　 Peak The number of authorized retail outlets in 2015 was 5999, a decrease of 5 compared with 2014, and the number of retail outlets directly operated by distributors was 36.1%. It is expected that the number of stores will remain roughly this level in 2016, while the profitability and efficiency of stores will continue to increase.

In 2015, there were 7208 stores in the country, which opened 1027 stores in the year, and closed 1138 stores, with a total reduction of 111 stores. Over the past six years, 360 children's clothing has been operated by independent business departments, and the number of stores has been increasing. Now there are 2350 stores.