Domestic sports brand giants "warm up for warmth"

In the past year and a half, the negative news of sports brands has always been a steady stream: the growth of performance ceilings, the sinking of international giant channels, the crisis of closed stores, inefficient marketing, cost increases, inventory crisis...

Behind this series of crises, as long as we talk about the sporting goods industry, the market will think of - the worry of inventory of sports goods, and the pressure of inventory.

Under such a haze, the market does not seem to see the turning point in the sports industry. On May 30th at the first session of the China Sporting Goods Industry Summit organized by the State Sports General Administration and the China Sporting Goods Industry Federation, Li Ning, Chairman of Li Ning Company, Ding Shizhong, President of Anta Sports, and Ding Shuibo, President of Xtep International, were listed on the Hong Kong stock market. Together, they discussed the development issues of the industry such as inventory, channel reform, and differentiation. It is worth noting that Ding Shizhong and Ding Shuibo have stated that the company’s inventory has been cleared. Faced with the competition of international brands, the three industries have expressed their enthusiasm.

Inventory processing is nearing the end of the second half of the sporting goods industry inventory has bottomed out?

Recently, the hot topic in the circle was that Li Ning was out of stock. It is said that at the Chengdu Fortune Global Forum 2013, there were several orders for group purchases. The customers had originally intended to buy Li Ning products and the result was not available. In addition to Chengdu, there is news that Li Ning Wuhan is also out of stock, and the shelves of factory stores are empty. The industry has speculated that Li Ning stocks have been basically cleared.

Coincidentally, at the summit forum, Ding Shizhong also made it clear that “we have good news that the inventory has been handled almost.” At the same time, Ding Shuibo also disclosed that “the inventory processing is very good, according to the plan at that time, it is almost It's up."

The inventory problem is one of the sensitive issues for listed companies of several major sports brands. Through inventory changes, investors can directly understand the company's operating conditions and at the same time have an impact on the trend of stock prices. For the inventory of the sporting goods industry, after the last year's clean-up, has the stock index on the market returned to normal levels?

"Daily Economic News" reporter asked a person close to Anta, the person said, "Several companies have stepped up their efforts to close their stores and sell their products, while at the same time digesting inventory through online channels and selling them to the Middle East through packaging. In Africa and other regions, at present, the inventory is almost digested."

Through the above-mentioned inventory clearance methods, although the indicators of each company's inventory have decreased, the above-mentioned approaching ANTA people also said that such inventory clearance is only a temporary solution. If several companies’ own sales models do not change, inventory problems will still be repeated in the next year. . According to the financial report data of major companies, Li Ning’s inventory at the end of 2011 was 1.13 billion yuan, and the inventory amount as of the end of 2012 was 920 million yuan. Anta's inventory at the end of 2011 was 620 million yuan, which rose to 690 million yuan as of December 31, 2012. Xtep's inventory at the end of 2011 was 670 million yuan, and inventory was changed to 580 million yuan as of the end of 2012. Among them, Li Ning's operating income fell by 2.2 billion yuan to 6.7 billion yuan, Anta revenue fell 1.3 billion to 7.6 billion yuan, special steps to grow slightly to 5.55 billion yuan.

At present, in order to tie in with the inventory clean-up of the three major brand companies to close stores one after another, incomplete statistics indicate that Li Ning closed 1,821 stores last year; Anta closed stores of nearly 600; and Xtebu Close stores had nearly 100. In terms of discounts, the three companies even got a 30% discount.

At the same time, the store will continue this year, with some analysts saying that the Anta brand is expected to close about 6.5% of retail stores in 2013. In the case of continuing store closures, it will be difficult to see high growth in the 2014 order book driven only by the same store, unless it continues to increase dealer stocks.

The growth of inventory and performance is closely related, and how to balance it is one of the most important topics for the three industry leaders. Looking at the current situation, the channel reforms of the three companies are in a period of pain. Some people in the industry predict that it will be very difficult for them to get out of the reforms by 2015.

Call for healthy competition Nowadays, competition with such powerful international giants as Nike and Adidas has caused the market to be extremely worried about the pressure brought by its sinking to domestic brands. When the industry entered the cold winter, three sports brands big brothers have expressed that they need to "hold warmth."

"One company can't compete with international brands. We can still lock our company." Ding Shizhong made it clear that why do you have a group? The overall scale of domestic companies is too small now, adding up to the entire scale. In fact, there is no Nike 1/10. Competition is not only a peer competition but also a scale competition. The first competition goal for Baotuan competition is, first of all, how to lock up the 1.3 billion people in the country. We must establish a healthy competition. Why the whole industry is developing in Jinjiang is very important.

"Specifically, Baotu should have a basic game rules. For example, during the Nanjing National Games, the director group wanted a group of sportswear to find me. I was wrong, the National Games was sponsored by water waves, and I gave waterwaves to He has a lot of things like this. It's important to establish a good mechanism to shape our brand."

In an interview, Ding Shuibo also said, “I am the president of Quanzhou. Ding Shizhong is the president of Jinjiang. We will always communicate with each other. Everyone is promoting each other in healthy competition. I believe that this industry through bundling can be more benign.”

As an industry senior, Li Ning made it clear that “I very much agree with Mr. Ding and everybody's point of view that the development of the industry requires everyone to work hard. In the endeavor, we can create some information, skills, and perspectives that can be shared. This is very important. Because the market economy is the largest Value is free competition, competition is inevitable, but there is a need for mutual respect in the competition, which should be the consensus of the industry."

Li Ning said that for the healthy competition, “Now we are facing the adjustment of the entire industry, so our company will adjust according to its own genetic and market opportunities.” The biggest problem is the industry, not just the enterprise. The biggest problem is the rapid development of the past and the homogenization of products, which means the homogenization of the entire business model. He said, "The current segmentation needs have begun to take shape."

According to the industry’s explanation, healthy competition means that the pattern that everyone had followed Nike’s wholesale has started to change, and major brands have begun to develop in the direction of the direct store model.

Behind the “big group warming” of the three industries, on the one hand, besides competition, the top five sports brands began to consider more benign competition; on the other hand, it was a signal that small and medium sporting goods companies began to integrate.

According to the “2012 China Sporting Goods Industry Development ***”, one of the most important trends is that the industry reshuffle has increased and the brand concentration has started to increase. UTA President Yang Dayun pointed out: "I think that in China's future sports industry, although it is currently a few thousand, there will be no more than 6-7 domestic brands that may survive in China in the future."