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    The Crisis Has Become An Opportunity For Enterprises To Transform Themselves And Upgrade Themselves.

    2020/3/9 13:18:00 8

    Capacity

    According to past practice, January to February is the peak season for sales of sports shoes and clothing products. However, due to the impact of the new crown pneumonia epidemic, since the end of January, almost all the shops under the sports shoes and clothing lines were closed, and sales fell off cliff.

    Under the epidemic situation, passenger flow is reduced, capacity is frozen, profits decline, inventory backlog... These problems are all being tested to the sports footwear industry.

    Dual door: shrinking capacity, high inventory

    Affected by the new crown pneumonia epidemic, most of the offline stores and factories of sports brands are temporarily closed. For the sports brands that rely on offline sales, the whole industry has been hit hard.

    Adidas said by e-mail that its sales fell by 85% in the past few weeks since January 25th. Puma executives also said its sales and earnings in the first quarter were damaged, and expected full year profits would be lower than expected. In early February, Nike officials also announced that they closed nearly half of China's stores.

    Hu Haobo, the founder of R2, who runs deep domestic road market, told Xinhua that most of his running shoes were sold through the Internet. Compared to the same period last year, the sales volume for online sales remained small. But he also admitted that the impact of the epidemic, the sales volume below the line is rather bleak.

    Hu Haobo originally planned to launch new cross country shoes after the year. But due to the factory shutdown, it is optimistic that the market will be launched until at least 5 and June. In his view, the impact of the epidemic on Nike, ADI and other shoes and clothing brand production capacity is relatively large, "because sales volume is the premise of capacity, and most of the domestic shoe and clothing factory during the serious epidemic situation is in a state of complete shutdown, at this stage after resumption, capacity is in a slow climb."

    He analyzed that although Nike, ADI and other futures oriented brands about 80% of the output has been transferred to Southeast Asia, but in the case of domestic capacity can not be rolled out, the first quarter and the second quarter of the overall sales volume will decline.

    For domestic sports shoes and clothing enterprises, they are facing the problem of backlog. "According to the normal mode of production, in order to ensure the supply of goods, the shoes and garments will be produced ahead of time before the season changes. Some sports brands may have produced some shoes and garments in the first quarter, that is, in spring. If they can not be processed as soon as possible, these goods may become backlog stocks. " The owner of a garment factory in Jiangsu said.

    Backlog will bring a negative impact on sports shoes and clothing enterprises and affect the cash flow of enterprises. In a sense, cash flow is more important than profit. Cash flow is a necessary condition for an enterprise to maintain its normal operation.

    Based on this, Han mu, founder of lazy bear sports, told Xinhua sports that "for the shoe and garment enterprises that overstock goods in the first quarter, there may be a vicious circle effect, which will affect the order in the second quarter."

    Industry will change

    During the epidemic period, shoes and clothing enterprises still have to bear many costs, including staff salaries and physical store rent. This not only tests the cash flow of enterprises, but also tests the ability of enterprises to resist risks.

    When the offline sales are blocked, the major domestic sports brands have "saved themselves", making up for the short-term impact of the epidemic by increasing penetration of online and private sector traffic.

    Recently, domestic sports leading brands such as Anta, Lining and 31st degree have all promoted online sales. Anta has launched and launched Anta micro Mall for each region to deal with goods under the line. It is understood that while promoting online marketing, Lining has also made certain reserves in brand endorsement and business activity planning. In February 27th, Lining officially announced that the new generation of singer Hua Chenyu became the spokesman for Lining's sports fashion product.

    Some sports brands also choose to cooperate with well-known network red "bring goods" anchor, or micro mall, and many other emerging channels. Through the way of profit sharing, we should open up new customers and supplement online consumption. To a certain extent, it accelerates the pace of domestic sports brand building online sales matrix.

    However, behind the domestic sports shoes and clothing brands actively developing the market, they are also facing the "international attack brand" attack. Some of the international sports brands also offered strong discounts to seize the share of the "cake" in the sinking market.

    In mid February, Nike carried out the "big 50 percent off" sales promotion activities in many parts of the country, while Adidas shouted the slogan of "21 in February, belonging to 11.11 of Adidas", and the annual discount of eleven or eleven was advanced to February.

    Compared with the sales price of international sports brand, Xinhua has found that its promotional price of some products is almost equal to that of domestic sports brand. In a live room with a cargo anchor, the famous running shoes brand new bran's hot shoes cost less than 200 yuan.

    In many ways, a race running in sports shoes and clothing enterprises is starting. No matter who wins in the end, it will speed up the transformation of footwear industry.

    Shoes and clothing market, impact into power

    To help enterprises get through this "cold winter", government departments at all levels have introduced relevant support policies. For the vast number of domestic shoe and clothing enterprises, this is undoubtedly a good news.

    The official of Bosideng, an ice and snow clothing enterprise, told Xinhua sports that the government recently launched a series of measures to increase fiscal and tax policy support and increase financial support, so as to effectively support enterprises' winter winter jasmine.

    It is true that the impact of the epidemic on sports shoes and clothing brand has caused a great impact, but it is a "double-edged sword".

    After the SARS epidemic in 2003, the statistics showed that the sales of sports shoes and clothing increased significantly. Expert analysis is mainly due to two points: first, the psychology of revenge consumption after the outbreak; two, the epidemic has promoted people's attention to physical exercise.

    In Hu Haobo's view, the positive irritation of the new crown pneumonia epidemic to the sporting goods market is self-evident, "opportunity is here, but there is a time." In the past one or two months, the epidemic prevention and control is still in a stalemate, which should not be reflected. But this stimulus will start from the middle of the year, benefiting from the Tokyo Olympic Games, and tends to be long-term and gradual.

    On the other hand, from the beginning of 2015, the domestic sports shoes and clothing market was in a boom period. The epidemic also broke the comfort zone of some enterprises, forcing some enterprises to re-examine their own development direction.

    Bosideng, responsible person said that the outbreak of Nami Jito in the digital business capacity improvement, development mode changes and other aspects of thinking and reform and innovation.

    In his view, the impact of the epidemic on the existing industrial structure, may stimulate the industry burst out huge development space and vitality.

    "We can look forward to and participate in this development process and turn the epidemic crisis into an opportunity for enterprises to transform themselves and upgrade themselves."


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