The Performance Of Sanfo Outdoor, Animal Husbandry And Pathfinder Are All Down. How To Break The Future?

In the first half of this year, the performance of Sanfo's three outdoor brands, outdoor, animal husbandry, and Pathfinder, all declined. Among them, the revenue and net profit of Sanfo outdoor and animal husbandry declined twice, and the Pathfinder faced the risk that the stock might be suspended. The Chinese Commercial Daily reporter found in the interview that many domestic outdoor brands are now in an awkward situation of "high or low." Under the background of the "Outdoors" campaign, how can domestic outdoor brands break down in the face of the attack of foreign outdoor brands and sports brands?

Poor performance

In the first half of this year, the performance of Pathfinder, Sanfo outdoors and Mu Gao Di were all poor. Among them, the Pathfinder issued a semi annual report, and issued a risk warning notice that its shares may be suspended. According to the announcement, the Pathfinder continued to raise a large amount of goodwill, investment and assets impairment for the investment projects that did not reach the expected investment in the early stage, which led to the loss of pathfinder for 2017 consecutive years and 2018 years. If the Pathfinder 2019 annual audit report was eventually identified as a loss, according to the relevant provisions, the Pathfinder shares will be suspended from the date of the 2019 annual report, and the Shenzhen stock exchange will decide whether to suspend the listing of the stock within 15 trading days after the suspension.

The semi annual report showed that the revenue of the Pathfinder in the first half of the year was 691 million yuan, down 21.16% compared to the same period last year, and net profit was 81 million 855 thousand and 900 yuan, an increase of 239.36% over the same period last year. However, the net profit growth of the Pathfinder does not come from the main business, but from the sale of real estate. It is understood that in the first half of this year, the company disposed of some of its own properties and realized net income after tax 36 million 252 thousand and 600 yuan, resulting in the current non recurring gains and losses also increased compared with the same period last year. Meanwhile, the loss of non outdoor main businesses also decreased compared with the same period last year. It is understood that the Pathfinder entered the gem in 2009, the original main business is outdoor products R & D design, organization outsourcing production and sales. Since 2015, the company has carried out many mergers and acquisitions, involving tourism services and major sports, and began diversified layout.

However, after implementing the diversification strategy, Pathfinder lost two consecutive years in 2017 and 2018, and the losses were 85 million yuan and 182 million yuan respectively, which led to the risk that the Pathfinder faced the possibility of a stock being suspended. This year, the company gradually stripped the loss of tourism services and sports and other businesses, hoping to reverse the performance. It is noteworthy that Sheng Faqiang and Wang Jing, the founder of Pathfinder, are constantly finding cash in the face of performance losses. Public data show that since 2012, Sheng Fa Qiang and Wang Jing have reduced the total number of Pathfinder shares 15 times, and total cash in the market has been 683 million yuan. Especially in 2017, Sheng Fa strong reduced the total number of Pathfinder shares 11 times.

Sanfo's outdoor revenue and net profit also declined. Data show that in the first half of this year, Sanfo's outdoor revenue was 185 million yuan, down 10.20% compared to the same period last year, and net profit was 1 million 640 thousand yuan, down 36.17% compared with the same period last year. Zhang Heng, Sanfo outdoor chairman, said the decline in performance was mainly due to the drop in sales of large client businesses, mainly concentrated procurement of large companies. However, he believes that the decline of Sanfo outdoor performance is related to the development stage of the outdoor sports industry. Sanfo outdoor will launch the X-BIONIC brand product that focuses on design and development, advancing towards the upstream of the industry chain. It is expected that the performance in the second half of this year will be greatly improved.

In the first half of this year, the revenue and net profit of the company also declined. Data show that in the first half of this year, the revenue of Mu Gao Di was 327 million yuan, down 8.25% compared to the same period last year, and net profit was 37 million yuan, down 4.24% compared with the same period last year. In the first half of this year, the uncertainty of macroeconomic growth and the decline in retail sales continued to affect the development of the industry, resulting in a slowdown in the overall industry, thereby affecting the company's performance.

Facing two obstacles

The 2018 China outdoor products market report shows that consumers are willing to take part in outdoor sports with the increase of spending power and disposable time. In addition, the vigorous development of outdoor sports events in China encourages consumers to choose more varieties, and consumers have more opportunities to participate in diversified sports.

So, outdoor sports heat greatly improved, why the domestic outdoor brand performance is poor? Yang Dayun, President of garment industry strategy and President of excellent fashion management group, told the China Commercial Daily reporter that there are two main reasons for the poor performance of domestic outdoor brands: one is brand positioning, the other is channel problem.

In terms of brand positioning, Yang Dayun believes that the domestic outdoor brand is in an awkward position of "high or low." The high-end outdoor products market is mainly occupied by overseas outdoor brands such as the ancestors, while the low-end outdoor products market is occupied by some scattered brands. The price of the single item is between 200 yuan and 300 yuan. In the middle end market, some of the sites are occupied by the middle end brands such as wolf claw and the northern part of the market. Some of the sites are occupied by sports brands, and their outdoor products combine with fashion, which are popular among young consumers. This has also squeezed the market share of domestic outdoor brands to a certain extent, and further intensified the market competition.

In terms of channels, Yang Dayun believes that compared to online channels, offline stores are more suitable for outdoor brands, because the store can enable consumers to feel the product's functionality and enhance consumer trust at a close distance.

However, for most outdoor brands, offline stores do not bring a good shopping experience to consumers. First, the size of a special store is about 100 square meters. Besides the corridor area, the area of the display product will be very limited, and the products will be limited, so it is impossible to set up the "consumer experience zone", which makes consumers lose the chance to experience products. Secondly, brand stores are the guarantee of quality in the impression of consumers, but because of the high cost of brand promotion and store operation, these costs will be attached to products, resulting in high prices. Consumers need products that match prices and values. With the gradual rationalization of consumers' consumption concept, if the franchised stores do not adjust their business models, their performance will go from bad to worse.

The Chinese Commercial Daily reporter visited the polar shop of Beijing Pathfinder. The salesperson of the shop said that the rental of the shop has always been high. Although the shop area is large, the experience area is very small, and the functionality of the product can not be shown to consumers. The best selling products in the shop are not products with technological content, but some half sleeves and shorts.

In Sanfo outdoor and Pathfinder shops in a shopping mall in Beijing, sales staff told the China Commercial Daily reporters that because of the high rental rate of the shopping center, the area of the shop would be smaller than that of the concept store and remained at 40 square meters in order to maintain a higher profit margin.

　 How to break the future

The report shows that the outdoor industry has gradually changed from a specialized market to a mass demand market, and the "Outdoors" movement has become the mainstream of the domestic outdoor industry development. It is reported that the "Outdoors" refers to any movement that moves out of the home, which is different from what is usually understood as a dangerous outdoor adventure. The "Outdoors" is closely related to the lifestyle and interests of consumers, and is closely related to the healthy consumption of the public. At present, the "Outdoors" industry has a market capacity of more than US $1 trillion.

According to Yang Dayun, consumers are more inclined to take into account outdoor sports and daily use in the case of "outdoor outdoor" sports. That is to say, in choosing outdoor products, consumers pay more attention to the style and design of products besides the functional nature of products. Therefore, domestic outdoor brands need to pay attention to the style innovation of outdoor products.

In addition, Yang Dayun said that the maintenance and expansion of domestic outdoor brands is also very important. Some outdoor brands have begun to set up offline experience stores, so that more consumers can experience products, so that more young consumers can understand outdoor sports and love outdoor sports.

An analyst who did not want to be named by CITIC Jian told the China Commercial Daily that the major outdoor brands began to clear their own development track, and the extension of the outdoor industry continued to expand, which brought more consumers to the market. But retail is still the backbone of the outdoor industry, and the exploration of the new model still needs offline retail. From the current situation, the multi category store and the scene marketing mode are more popular. Outdoor brands can enhance the effective supply of product quality and quantity through brand collection, cooperate with fitness clubs, travel agencies, enterprise groups, and after-sale value-added service system to enhance customer stickiness and drive product sales growth.