Sports brand expansion deceleration Li Ning crazy discounts to deal with the huge amount of storage stock

Source: Internet
Author: User
Keywords Expansion massive deceleration
Tags .net company consumption data direct direct shop discount enterprises
From Jinjiang's Quan an road to the shoe all road, everywhere Anta, the special step, 361 degrees, the gram these familiar domestic sports brand's specialty stores.  In these sports brand birthplace Jinjiang Chen Dai Town, all over the thousands of shoe factory and supporting manufacturers. Data show that Jinjiang currently has a total of more than 3,000 footwear production enterprises, annual output of 1 billion pairs of shoes.  Among them, sports, travel shoes accounted for 40% of the total production, the world's total output of 20%.  Brand crowding and crazy expansion once for these sporting goods enterprises to bring rocket-like growth, however, in the face of foreign sports brand direct competition and domestic market consumption of the two-sided attack, these companies are facing unprecedented difficulties.  Expansion deceleration in the country's major sports brand stores can be seen, whether Anta, special step, or 361 degrees, the new 2012 can hit 80 percent or more, some of the old paragraph to 50 percent or even 30 percent for sale. Li Ning (02331.  HK) Former chief executive Zhang has publicly stated that the discount rate for factory stores and discount stores was 50%~53% in 2012.  The culprit for such a crazy discount is a mountain of inventory. In the case of Li Ning, the amount of inventory in 2011 rose by 40% over a year earlier, to over $1.1 billion. In the first half of 2012, the company's net profit was only 44 million yuan, a year-on-year decrease of 84.9%, and its inventory turnaround days surged to 95 days.  Another leading enterprise Anta to the end of 2011 inventory of 618 million yuan, the first half of 2012 company shareholders should be accounted for net profit fell 17% to 769.6 million yuan.  Many companies have realised that the simple and extensive expansion of large quantities, large circulation and low prices in the early years is no longer applicable.  Contraction-Becomes the primary task of these enterprises. In the first half of 2012, Li Ning closed 1200 inefficient stores, up to 15%. By June 30, Li Ning's regular stores, flagship stores, factory stores and discount stores were 7,303, with a net decrease of 952 at the end of the year, and 5 after 52 by dealers.  Similarly, in 2012, the company has reduced 1067 stores, with Anta closing a total of 110.  Data show, Li Ning, anta, 361 degrees, special step, and the number of main brand stores, after some integration, have returned to the level of 7,000. One industry personage believes that in the lack of consumption power, product oversupply in the big environment, the previous few years blind expansion of the inventory and expansion of the store, but become the burden of major brands, "Normally, in the number of stores in the volume of 6000 to 7,000 feet have covered the national 80% of the market."  "said the person.  To inventory the face of a huge amount of inventory, apparel enterprises continue to try to discount, electricity, Direct Battalion, and repurchase methods to inventory. However, excessive discounts on the enthusiasm of agents will also cause contusion. A second-tier City leisure clothing agent Du said to reporters, remove labor, shop rental, profit space has been very limited, as long as the brand of direct shop a discount, I can hardly make any money. The price war without the bottom line makes the enterprise sometimes have to close to zero profit to push the goods quickly, become a kind of "cut tail to survive" the last resort.  To Anta 2012 years a new casual men's shoes For example, in the physical store to sell 239 yuan, and in the day Cat Mall, the group purchase purchase is 155 yuan, the equivalent of playing 60 percent. There are also enterprises to control the emergence of new inventory, and constantly establish direct shops and discount stores, and gradually increase the control of sales terminals.  However, the greater the proportion of the direct shop, means that the higher the operating costs, requiring enterprises to have a more secure level of cash flow to cover a variety of operating expenses.  Where to go wanguo a report says sportswear is the toughest test in the apparel sector, as the market for young people, the biggest target, is shrinking as the birth rate declines.  No one can give an accurate forecast when it is time to get back to the top.  However, the danger must be organic, in many sports brand revenue shrinking, a new field-children's wear series is bringing these brands a bright color. The only growth figure in the first half of the 2012-year performance of the 361 degree release is that children's clothing stores add 282 to 1439, and children's wear exceeds the group's revenue for the first time.  The report said that in order to division of business, footwear, clothing, accessories, children's clothing four products line, only children's wear products better performance, the average price increased by 40%, sales increased by 107%, accounting for the proportion of the group turnover from 3.6% to 11.6%.  Anta's 2012.5 Annual report also shows the growth of children's clothes, with the number of kids ' shops increasing from 623 to 691. Similarly, the special step also announced at the end of 2011 to expand the children's wear series, and in March 2012 special step Children's wear 2012 autumn and winter new product release fair, announced the completion of hundreds of millions of orders of the established objectives.
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