The Outdoor Sports Market Is Moving Towards High-End, And It Is Still A Blue Ocean.

After the golden period of development, China

Growth is slowing down.

Experts believe that the focus of outdoor sports products competition has gradually evolved from the initial production competition and price competition to channel competition, and then to the current stage of brand competition, the future industry competition will develop towards the comprehensive strength competition.

At present, the high-end market of domestic outdoor sports products should still be blue ocean, and enterprises can increase the core technology research and development in this area.

The outdoor sports market is booming again.

Reporters noted, "outdoor products first share".

Limited by Share Ltd semi annual report 2018 shows that its revenue has collapsed and another domestic outdoor sports brand.

Executives have reduced their holdings to hundreds of millions of dollars.

According to the insiders, outdoor industries, which once existed as a sunrise industry, are often blocked by development. Perhaps finding the brand positioning and increasing core technology research and development can find a way out again.

Outdoor sports market downturn

Semi annual report shows that in the first half of 2018, Pathfinder business income decreased by 31.38%, net profit decreased by 69.47%, and net profit excluding net profit decreased by 89.02%.

Tourism business takes up half of the revenue, but the gross margin is as low as 3%, which has led directly to the continued decline of the Pathfinder's performance.

In fact, this performance is only a continuation of the trend that the Pathfinder's performance has plummeted in 2017.

In 2017, Pathfinder business income of 3 billion 34 million yuan, net profit -8485.39 million yuan, a decrease of 151.24%, net profit excluding net profit is down 241.15% to -1.85 billion yuan.

This is the first loss in the past 10 years.

What is more worrying is the high inventory problem prevalent in the footwear industry.

The latest data in the first half of 2018 showed that the inventories of the Pathfinder were as high as 399 million yuan, compared with 497 million yuan in the first half of this year.

In fact, such a situation is not surprising.

After the rapid growth of -2012 in 2008, the growth rate has been shrinking year by year since 2013.

In the background of downgrading industries, Pathfinder chooses to diversify through capital operation.

In March 2015, the Pathfinder spent 230 million yuan on strategic investment to tour the world, and began to incorporate the tourism sector into the business of listed companies.

However, this is in exchange for losses in successive years.

In fact, not only the Pathfinder, but also the days of domestic outdoor sports brands.

According to the reporter, Sanfo outdoor executives reduced their holdings to 100 million yuan and pushed another 20 million yuan to increase their holdings. However, they failed to complete all of their commitments. One of the executives completed only half of the increase in their commitment, causing the executive to receive the regulatory letter from the Shenzhen Stock Exchange.

In terms of performance, Sanfo outdoors listed its first loss in two years last year.

Although the first quarter of this year turned losses into profits, operating cash flow is still negative.

Moreover, in recent years, Sanfo's outdoor sales revenue is still growing without revenue growth.

In the first quarter of this year, the sales cost of the company was 23 million 733 thousand and 400, about 15.5 times of net profit.

For the first time last year's losses, Sanfo outdoor said that under the background of the overall economic downturn, the main business revenue growth was weak, the cost of large-scale events organization and outdoor camp project increased, while the increase in the amount of manpower cost and inventory depreciation provision, all factors led to a loss of performance.

Indeed, a lot of new business has taken up the energy of Sanfo outdoor.

In September 2016, Sanfo launched an outdoor public offering plan, and the proposed increase was not more than 600 million yuan.

Among them, 398 million yuan will be used for Sanfo outdoor sports events, camp + training, retail + experience integrated operation center construction project; 202 million yuan will be used for Sanfo headquarters office and R & D center construction project.

In March 2017, Sanfo outdoor also announced that it would invest 400 million yuan to build 7 camps. The construction period is expected to be 3 years, with investment of 141 million yuan, 186 million yuan and 91 million 403 thousand yuan per year respectively.

According to the plan, the average annual operating income of the project is 414 million yuan, the annual net profit is 66 million 709 thousand and 400 yuan, the internal rate of return after tax is 13.78%, and the after tax investment recovery period (including construction period) is 7.47 years.

However, diversified business has not brought the expected growth of Sanfo's outdoor business, but has been a drag on the company's development.

According to the data, in 2017, Beijing Sanfo Outdoor Sports Management Co., Ltd., which was responsible for planning outdoor sports and sports, lost 1 million 260 thousand yuan in the Sanfo subsidiary. The Beijing Sanfo outdoor sports training Co., Ltd., which was responsible for planning and organizing outdoor camp and camp education and training, had a net loss of 3 million 350 thousand yuan.

The encounter between Pathfinder and Sanfo outdoor is a microcosm of the current outdoor sports market.

It has been shown that after 2009-2012 years of gold development, the growth of China's outdoor products market has slowed down. By 2016, the industry's growth rate has been below 10%, and has entered a period of deep adjustment.

The market report of China outdoor products 2017 released by COCA, the China Textile Business Association, pointed out that in 2017, the total sales of outdoor products in China amounted to 24 billion 460 million yuan, and the total annual growth rate of retail and wholesale markets was the lowest since 2002.

The reason for the slow growth of outdoor products market is mainly due to the compressed outdoor area of shopping malls, and the trend of small and medium-sized outdoor stores closing.

In the downturn of the physical retail industry, the outdoor products market, which relies on its growth, has also been affected. This is one of the reasons why the main business of outdoor brands has not invested much and diversified mainly.

In addition, Wang Yubao, the head of China Garment Association Industry Department, told China Daily reporters that most of the major outdoor brands abroad have entered the domestic market in the past few years. These international brands have quickly occupied a higher market share in China by virtue of decades of industrial development experience. They have taken the lead in three categories of outdoor clothing, footwear and equipment.

In addition, Wang Yubao believes that the current domestic outdoor equipment brands are facing a problem is that the brand positioning is not clear enough.

"This leads to the lack of a foothold in the high-end market and the mass market.

From 2010 to 2013, the outdoor products market was blowout and the brand was mixed up. Many brands did not have a clear definition of the outdoor market, let alone the road to differentiate.

He said: "enterprises need to judge whether they want to develop to professional equipment or to popularize the route, whether to make efforts for multiple brands or to work hard in a subdivision area."

Reporters learned from the interview that there is still a lot of space for outdoor markets to be excavated, including mountaineering, skiing and so on. At present, there is no brand that can really lead the development of the industry in China.

"At present, the high-end market of domestic outdoor sports products should still be blue ocean.

However, no one has been to the sea, the depth is unpredictable, the risk is bigger.

However, in the long run, with the increase of professional population, there should be more and more markets. Enterprises can increase the core technology research and development in this area.

The focus of outdoor sports product competition has evolved from the initial production competition and price competition to channel competition, and then to the current stage of brand competition. The future industry competition will go deep into the competition of comprehensive strength.

Wang Yubao said.

A professor at the Department of physical education and research of Peking University told reporters that the rapid development of outdoor sports is inseparable from the support of the government.

Such as funding, policy and management support.

Since 2010, the State Council and the General Administration of sports have issued relevant policies to support the sports industry and raise the national fitness to the national strategic level.

Outdoor sports are closely related to the development of China's sports industry and the public's participation in sports activities. Under the strong support of government policies, China's outdoor products industry will continue to benefit.