The Market Value Of Expensive Birds Is Higher Than That Of Lining, But It Has Been Running For Two Consecutive Years.

Two consecutive years of negative revenue growth.

What is the market value of Lining's market? But from the first goal of the sports industry, the actual performance of the birds is worrying. How much time do you have before the new wave of sports brand shuffle?

"We want to be the first company in the domestic sports industry."

This is the goal of Chen Yizai, a senior advisor of the noble bird, in December 2015, when he announced that it would shift from the manufacture of sports shoes and clothing to the operation of the sports industry.

There are three layers of thinking for the sports industry, namely sports competition, entertainment industry, sports consumption service industry and sports goods manufacturing industry.

The judgement of expensive birds is that with the change of new consumer groups and the change of sports consumption trend, the traditional sports consumption era will gradually develop into sports service industry, and competition entertainment and consumer services will become the upper level of sports industry.

Judging from market expectations, this judgment is "no fault".

According to Plunkett Research data from the US Industry Research Institute, the US sports industry market scale in 2015 was US $498 billion 400 million, among which sporting goods were the first largest subdivision area, the proportion was 42%. The second major area was the consumption of professional sports events, which accounted for 18.6%; third and fourth were leisure fitness and venue construction, occupying 15% and 12.1% respectively.

In contrast, the structure of China's sports industry market is "top priority". The data of China Securities Securities show that China's sports service industry is lagging behind. Sports goods manufacturing and sales occupy 79.1% of the added value of sports industry, while sports events, leisure fitness and sports venues are less than 20%.

Lin Tianfu, chairman of the noble bird, believes that the sports industry wants to be bigger. It needs to focus on sports activities with the largest number of development and the largest number of participants, and sports enthusiasts make investment layout for consumption hot spots. Sports goods consumption is only the foundation of the industry.

The goal of "noble bird" lies in sports consumption and service industry. Ultimately, the strategy of "big industry ecology + multi product operation" is to be realized.

However, it can not be overlooked that the gap between the Chinese market and the US market is not a single star. Even with the support of "46 document", it is doubtful whether the 5 trillion output value of 2020 will really reach the expected proportion.

More importantly, at present, the sports industry in China is not perfect enough. It will not be enough to support the national fitness goals and the operation of the sports venues.

Like the pformation of most large companies, the pformation of noble birds is due to the contraction of main business. The 2014 annual report shows that the annual income of is 1 billion 919 million yuan (author note: to ensure that the financial data is not exaggerated, the data is not taken into the "five entry system"), which is 20.21% lower than the 2 billion 405 million yuan in 2013. The net profit also dropped from 423 million yuan in 2013 to 312 million yuan in 2014, a decrease of 26.27%.

Contrast can be found that in 2015, the revenue of the precious birds was 1 billion 969 million yuan, the revenue growth was negligible, and the net profit of 331 million yuan was in the stage of stagnation. At the same time, the birds were also faced with the pressure of rising sales expenses, management fees and financial costs.

Since 2012, the cold winter in the sports market has brought 3 years of inventory to the domestic sporting goods manufacturers. During the period, the brands have adjusted the focus of their products.

In the latest semi annual report of 2016, the company achieved 1 billion 18 million yuan in business income, an increase of 0.13% over the same period last year, and the operating cost was 582 million yuan, an increase of 6.09% over the same period last year.

Net profit of 157 million yuan, a decrease of 9.90% over the same period.

In the first half of the year, the birds closed 354 retail outlets and 202 new retail outlets. The overall performance is still in the doldrums.

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Obviously, the precious birds haven't completely relaxed their main business, but still have the idea of boosting the main business.

What you see is the channels of the two companies, trying to restart business growth by opening channels. At the crossroads of strategy, what the great bird thinks is whether to throw the burden forward or to face the future in a steady and steady way. At present, the birds haven't completely abandoned their main business. After all, it is difficult for the ship to turn around.

The market value is less than ten billion RMB, but the market value of the bird is over 15 billion yuan.

Despite the further decline in profits, the noble birds still maintain a market value of ten billion. The management behind the precious birds has been led to the industrial layout, and the "industrial investment" strategy is the core of supporting the high bird market value.

In order to achieve this goal, the way adopted by "noble bird" is "capital operation", and through early mergers and acquisitions to invest in start-ups and industrial companies to achieve early layout.

At the beginning of 2015, 240 million of them were in charge of tiger sports. In July 2015, the two sides jointly set up an investment fund with a total scale of 2 billion yuan and 1 billion yuan.

Up to now, domain capital has invested in more than 20 Internet plus projects, including star projects such as knowledge of the ball, fun sports, hot body building and Feel.

But unfortunately, due to project and investment characteristics, such "industrial layout" has not really formed a strong activity with the "noble birds". Instead, it is the momentum of tiger jumping sports which has started from the content to return to A shares through industrial layout.

The reason is still far from being thirsty, sports service,

It looks good. From a financial point of view, this kind of investment will continue to be a medium and long-term income.

Some projects even started the development of electronic commerce, the actual operation is still for Nike, Adidas "stand", the business level is difficult to help the birds.

Therefore, it is the key to "save yourself" by investing in Jay's trip and famous shoe store. Although the surface is the expansion of the channel, actually the business is upgrading. When the online store is running more and more difficult, the company wants the shareholders to continue to support themselves, and selling shoes and selling clothes is the right way.

In view of the development of sports market, the "sports industry first" of noble birds is not a castle in the air. The idea that the best bird needs to win is the contradiction between its main body and external growth. When the start-ups have not yet hatched to form a strong relationship with themselves, the trend of the main business will test the strategic thinking of a pformation company.