Jinjiang Sports Brand staged a knockout game: Selling on the street for $100

Recently, the mid-year reports of Jinjiang sports brands have appeared one after another, but the collective “face” is ugly: high inventory does not go, and the turnover is stagnant. Therefore, a “brand knockout” is quickly uncovered. However, the crisis is not only so, at this time, foreign giants Nike, Adidas also led many foreign sports brands to attack the Chinese market. It is not easy for domestic sports brands not only to compete in the “elimination play” but also to resist foreign invasion.

"100 yuan 3, just pick." Recently, Shanghai Xietu East Road, the emergence of a community buying rush, the reporter approached and found that the original Jordan apparel sale, any three only 100 yuan. The reporter saw that a customer who only spent 10 yuan bought a Jordan brand shorts

In the face of economic pressure, major sports brands have to engage in promotional activities, and high inventory may be the root cause of the massive price cuts of sports brands.

In the past, one hundred, even a few hundred dollars of sportswear had fallen from the price of twenty to thirty dollars. This is incredible. In fact, as early as June and July, major sports brands have launched promotional activities. The high inventory since last year may be the root cause of the massive price cuts of sports brands.

In contrast with the public sports brand selling, in the securities market, the sports brand's share price also suffers similar abandoned fate. On August 27th, the stock prices of the five major sports brands listed in Hong Kong again fell collectively. Xtep fell 1.045%, 361 degrees fell 0.962%, and the rest fell more than 4%, with Li Ning losing the most, at 5.855%.

Jinjiang brand "successful results" in the examination

Recently, the local sports brand's middle newspapers have appeared one after another, but collective "face" is ugly: high inventory does not go, the turnover is stagnant. Analysis of the industry, the collective decline in the share price of sports brands, and their "high school test scores" related.

In terms of specific conditions, among the top five sports brands in the country, Li Ning’s net profit fell by 84.92%, which was the largest in the industry. The stock amounted to 1.138 billion yuan, accounting for 14.98% of the total assets, and the pre-tax profit was 77.3% lower than the same period of last year. This year's performance is pre-losing.

In the first half of the year, Peak's inventory was 528 million yuan, an increase of 29.39% over the same period of last year. The turnover decreased by 28.5% from the previous year, and the net profit dropped by 43.35%. Anta and 361 degrees net profit decreased by 17% and 22.98%, respectively. Among them, Anta's Inventory increased by 82 million yuan over the previous year, and 361 degrees of inventory accounted for 5.11% of total assets.

In contrast, Xtep’s performance was a major highlight: Xtep’s turnover in the first half of the year was 2.607 billion yuan, up 1.44% from last year, and inventory was down by 186 million yuan from last year, but Xtep’s “2013 No. 1” was held in July. The quarterly trade fair clearly announced that "the amount of sales orders for the Group's ordering meeting in the first quarter of 2013 was about 15%-20% lower than the same period in 2012."

Local sports brands staged "knock-out match"

Before the release of the interim results report, major brands appeared to have taken corresponding measures.

Li Ning accidentally sounded the pre-loss warning. If the alert eventually becomes reality, Li Ning Group will face its first annual loss since it was listed in 2004. Chinese Star (Beijing) Information Technology Development Co., Ltd. commented on its official Weibo at 8 pm on August 26th. “The inventory crisis of local sports brand retailers has not yet bottomed out; in the adjustment process of the industry, there will be some The company was eliminated."

For the 627 million yuan high inventory, on August 6, ANTA issued an announcement saying that “after this careful adjustment, plus the Group’s new wholesale discount rate policy starting from the 2013 order, this will end in July. The order amount for the Group's first quarter 2013 trade fairs fell by approximately 20% to 30%."

Compared with the reduction of Anta and Xtep orders, Peak chose to reduce its sales outlets. On June 30, 2012, the number of authorized retail outlets of Peak Group in China was 7,059, a net decrease of 747 compared to the end of 2011. It is estimated that by the end of 2012, the number of Peak authorized retail outlets will be reduced to 6,500.

Domestic sports brands must not only compete in the "elimination game", but also have to resist foreign invasion.

Recently, Adidas also disclosed its global sales in the first half of 2012 reached 7.341 billion euros, an increase of 11%, net profit of 455 million euros, an increase of 30%. At the same time, Adidas also raised its full-year net profit forecast. It is expected that the annual net profit will increase by 15%-17%. Visible, Adidas not only performed well, the stock market also rose steadily, the stock price rose 19% last year.

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