China will usher in the sporting goods industry or the overall recovery in 2014

Although the industry chill still lingers, but entering 2014 on the occasion, a number of representative domestic sporting goods business in 2014 in the second quarter order intake achieved an increase. This is a signal of an industry as a whole to recover. Industry nightmare After 2012 years ago, has been the rapid growth of the domestic sporting goods industry suffered nearly 10 years the biggest performance decline, Li Ning, Anta, Peak, Xtep, 361 ° and China trends and other six representatives of the domestic sporting goods barometer of Hong Kong stocks listed companies, annual results and net profit were sharp decline, the original industry leader Li Ning is the emergence of a serious loss, all the sporting goods business staged a collective nightmare shut shop. Homogenization of products and limited domestic market makes numerous brand management difficult, many brands experienced from 2008 to 2009 the rapid expansion after 2011 encounter fierce competition, companies are caught in a declining market share, the amount of days inventory embarrassment. Destocking initial results To reverse the situation, all companies have a discount, closed shop, clean up inventory. Data show that Li Ning, Olympic, special steps, several sports brand in 2012 closed the 4000-5000 stores. The first half of 2013, Li Ning, Anta, Peak, 361 °, Xtep five major brands off the total number of stores up to 2249. While reducing the number of Chinese brands overall trend of the 611 stores, is the six largest sports brand in a closed stores. Followed by 361 °, the total number of 601 stores closed. Third-quarter operating data showed 361 °, the second half of 2013 their number reached 443 shut shop. The other Hong Kong-listed sporting goods store brand Meike International distributors reduced by the end of 2012 to about 1197 to about 562 last year. Troubled industry-wide high inventory problem can be alleviated. According to last year's semi-annual report data show Anta finished goods inventory at the end of 2012 from 503 million yuan to 367 million yuan dropped 30 June 2013; the Li Ning finished goods inventory at the end of 2012, down from 1.419 billion yuan to June 2013 1.232 billion yuan on the 30th of; Pick, as at June 30 last year, inventories of its products in 183 million yuan, representing a decrease of 27.38% before year-end. Enter 2014 in the occasion of the enterprises said that begins with channel and product strategy adjustment in 2011 has been restored to a healthy level so that inventory. 2014 new sporting goods prices also confirms this phenomenon. Li Ning, Anta, special steps, Pick and 361 ° at the meeting were published in the ordering of sports shoes and clothing prices will again one to two percent of the news. Prospective net sporting goods industry analysis report that: Sporting Goods prices and strong growth in orders, to ease pressure on the stock of a certain relationship, in the sporting goods industry has been signs of improvement. Signs of improvement Anta first published in 2014 in the second quarter order to achieve positive growth in the number of units, and the third quarter of 2014 will show orders, order growth remained strong; Li Ning after the implementation of channel recovery plan, the first half of 2013 year-on-year decline in absolute inventory of about 30 % operated stores and dealers same-store sales growth than non-retail business model were up by 24% and 4%; Olympic sports orders will be released in 2014 total orders in the second quarter, with sales in the same quarter of 2013 compared to obtain more high growth; Xtep International orders will have continuous orders decline narrowed three quarters ...... "Sales prices rebounded in the third quarter 2014 orders at the order quantity increased significantly and so is every indication that the current sports brand enterprises have entered late to the inventory, the industry is expected to fully warmed up." Investment Advisor Light researcher Zhu Qing Hua told this reporter. Olympic Sports CEO Xu Zhihua also optimistically predicted that this year will be the year the Olympic recovery. Qilu International believes that the old product inventory gradually clean up various sporting goods company's new product orders are expected to have increased, "the industry has passed the worst time, growth inflection point is approaching." "Deep" market "Our position in the low-end sports brand in general, such as Anta, special steps you want to come out of their exclusive advantages such as development path, first of all, it should strengthen channel expansion tier cities; Second, go online and offline linkage development path; Finally, the characteristics of the development and avoid the homogenization of competition. "Zhu Qing Hua told this reporter. The first is the market segment. 361 ° has adopted a multi-brand strategy, at the same time retain 361 ° movement, has opened a 361 ° and 361 ° Kids yet. Allegedly, the three brands vary, but complementary, wide coverage to meet the basic needs of a family shopping sports fashion apparel category. Anta multi-brand road began four years ago to spend to acquire the Italian brand Fila trademark and operating business in China; outdoor sports high-growth markets ANTA saw a "Blue Ocean." After the launch of Kids Xtep brand Xtep1 + 1, also launched sub-brand Xtop, mainly compete Mainland second and third tier cities casual clothing market. With the breakdown of the maturing of the domestic consumer trends and sports industries, domestic sports enterprise in the past linked to "sports brand" title selling "casual clothing" real old road has come to an end, sports brands have begun to focus on a more fine industry sub-categories. Frequently contracted NBA players such as Anta, launched a signature basketball shoe with a clear positioning equipment; Li Ning is also not clear from the previous "90" position to return to professional basketball fields. Continuous efforts to expand overseas. Peak Group chairman Xu Jing Nan said that for the further increase of international investment Olympic confidence. 2013 report shows that, although the Olympic marketing in the country declined, but revenue in overseas markets has achieved growth. Pick overseas market revenue share of total revenue reached 14.8% compared with 13.4% at the end of 2012 but also to enhance and consolidate the Chinese sports brand overseas sales in the first position. For 2014 a new international marketing campaign, Pick proposed the "three hundred targets", the first "hundred" is to complete the registration 100 countries, and the current Olympic trademark registration has been completed in more than 160 countries around the world; another "one hundred "is sold in 100 countries and territories Pick products will achieve this goal the next three years; finally a" hundred "sales of 10 billion yuan in a decade. Facing the industry downturn and corporate malpractice When everyone on the highly anticipated sports brand ushered out of the winter warm spring occasion, this month issued a profit warning consecutive three companies gave the judge poured cold water. FLYKE International, 361 ° and Meike International issued a profit warning for the last year a series of results, forecast as of the end of December last year, the annual results for the year or a more substantial loss. Shoes and apparel industry research Magang had told this reporter, "For apparel companies, crazy shop, the old routines Bo eyeball marketing practices, such as the performance of garment enterprises have failed to stimulate growth, the new growth will be through acquisitions other brand or channel, the depth and the Internet and other new business models combine to achieve. " Insiders said that has not been successful transformation of sporting goods companies may decline will continue in the last couple of years, but it probably should face the industry downturn and corporate malpractice, faced up to change the business model, while the implementation of more market segments clear brand positioning.