The Sporting Goods Industry Is Facing Bottlenecks, And Inventory Can Not Only Be Temporary.

< p > over the past two years, "high inventory" has always been a lingering nightmare for Chinese sports brands.

A series of crises triggered by "high inventory" also made Chinese sporting goods industry suffer.

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< p > more than two months ago, five major domestic sports brands Anta, Lining, PEAK, XTEP, and 331 degrees announced 2012 annual performance reports.

The annual report shows that the negative growth of collective net profit in the whole industry: Lining's huge losses nearly 2 billion yuan; Anta also appeared in the market for the first time in 5 years, and the net profit for the first time "double drop", and PEAK and 331 degrees net profit fell by more than 30%.

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At the end of May, at the end of May, the statistical data of the 2012 white paper on the development of China's sporting goods industry (hereinafter referred to as the white paper) jointly issued by the State General Administration of sport and China Sports Goods Federation also showed that China's sporting goods industry, which consists of sportswear, sports a target= "_blank" href= "//www.sjfzxm.com/" and shoes "/a" production, has entered a turning point of the industry.

As the "white paper" analysis, China's sporting goods industry is facing a big shuffle, and change has become the key to the development of this industry.

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< p > < strong > sports goods industry has encountered bottlenecks < /strong > /p >

< p > since 2011, a cold spell has swept the sporting goods industry in China for more than ten years, with the growth rate of two digit growth in the past decade. The domestic campaign < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > a target= "_blank" href= "_blank" > shoes and hat > market, showing signs of achievement peaking, slowing down development, stagnation and even retrogression.

In 2012, the annual report of Chinese sporting goods companies crashed, while the whole industry, which was dragged by high inventory, plunged into a downturn.

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< p > < < white paper > > shows that the sales of sports shoes and sportswear in domestic sporting goods listed companies decreased by 29.69% and 19.28% respectively over the previous year in 2012.

Li Ning Co, which once surpassed Adidas in domestic sales, was also "injured" in the past two years.

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< p > the company's share price fell from HK $32 in April 2010 to HK $4.5, or 80%.

The fluctuation of Li Ning Co's performance is a microcosm of China's sporting goods industry.

Since the 90s of last century, with the increase of China's national income, the demand for sportswear and footwear products has been greatly improved.

The booming market demand has generated a large number of domestic sporting goods enterprises. Only in Jinjiang, Fujian, there are thousands of sports apparel and footwear manufacturers.

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< p > enterprise products are stereotyped, and the marketing means of enterprises are mostly imitation and even "Shanzhai" foreign brands.

The rapid rise of low threshold and extensive mode has brought the first pot of gold to these local brands, and has also laid a hidden danger for the future development.

Whether products or business models, serious homogenization has become the biggest factor restricting the development of local sports brands.

"Since I can earn money, why should I spend my money on products?" said Zhang Qing, a sports marketing specialist.

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Less than P, the consequences of rapid expansion were quickly amplified in the context of economic slowdown and the global economic crisis.

"Sportswear industry analysis shows that in 2012, the total consumption income of the main industry listed companies decreased by 29.69% compared with the same period last year. Sales revenue of this category decreased for second consecutive years, and the sales revenue of the major listed companies showed a downward trend."

In the just released white paper, the data is not optimistic.

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P also makes the pformation of this industry urgent.

In this period of similar turning point, the "white paper" outlines the current trend of China's sporting goods industry: the overall scale of the sporting goods industry is further expanding, the growth rate continues to slow down, the industry shuffling is intensified, the manufacturing cost is rising rapidly, the core competitiveness of China's sports brand is reshaping, the industrial cluster effect is continuously enhanced, and the regional economy is driving significantly.

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< p > "this is an inevitability.

Look at the history of sporting goods abroad. There is also such a stage.

Peng Xiao, deputy director of the sports equipment and equipment center of the State Sports General Administration and vice chairman of the Federation of sports goods industry of China, said in an interview with reporters that the current dilemma has also accelerated the pace of pformation of Chinese sports brands.

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< p > < strong > remove stock can not only temporary solution < /strong > < /p >.

< p > at present, the dilemma of China's sporting goods industry is precisely due to the continuous upgrading of people's demand for products, the gradual saturation of sporting goods market and the continuous rise of production costs.

The direct result of China's sporting goods industry is "high inventory".

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< p > the 2012 annual report of China sporting goods industry shows that the total stock of the six famous brands in the year amounted to 3 billion 721 million yuan.

In order to reverse the decline, several listed Chinese sporting goods enterprises began to "de stock" in the past two years.

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< p > on the one hand, sports brands have been shrinking their fronts.

Among them, the number of Li Ning Co stores was the largest, from 8255 in 2011 to 6434 in 2012, closing 1821.

PEAK followed its retail outlets by 1323.

The total number of stores in Anta also decreased by 590.

On the one hand, the surge in operating costs and the unsatisfactory return on investment are due to a large backlog of stocks.

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Besides P, these brands also offer special offers and discounts on a large scale.

In terms of discounts, Lining, Anta and XTEP even have a discount of 70 percent off.

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< p > the "de arm survival" type of de stocking has also achieved some results.

According to the earnings data of major companies, Lining's inventory at the end of 2011 was 1 billion 130 million yuan, and the inventory at the end of 2012 was 920 million yuan.

Anta's inventory at the end of 2011 was 620 million yuan, up to 690 million yuan in December 31, 2012, and 670 million yuan at the end of 2011 in December 31, 2012, and 580 million yuan at the end of 2012.

Among them, Lining's operating income fell 2 billion 200 million yuan to 6 billion 700 million yuan, Anta's revenue fell 1 billion 300 million to 7 billion 600 million yuan, XTEP's Micro growth of 5 billion 550 million yuan.

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< p > in the recent sporting goods industry summit, Anta President Ding Shizhong has finally thrown out a slightly relieved message. "We have a good news is that the inventory is almost processed."

Similarly, XTEP President Ding Shuibo also revealed that the inventory was handled well, "according to the plan at that time, it was almost the same."

Even Lining seems to have good news about this.

Because rumors, Lining in Chengdu, Wuhan and other areas of factory stores shelves are basically empty.

The industry has also speculated that Lining's huge inventory is coming to an end.

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< p > "several companies have increased the intensity of the business, special sale, and through the network channels to digest inventory, but also packaged into the Middle East and Africa and other regions, at present, inventory digestion is ideal."

An analyst from the sports products industry revealed.

But he also believes that relying entirely on stores and discounts on inventory will inevitably bring negative effects.

"The revenues and profits of these domestic sports brands are shrinking dramatically, and the order volume is shrinking accordingly."

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< p > in Zhang Qing's view, if the enterprises in this industry can't get out of the development mode of "palliative care", the inventory problem will still be repeated.

The industry also analyzed, "once the channel and pformation is not ideal, inventory problems will follow the next two years."

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< p > in the Wilson Asia Pacific Business Director Wang lie, it seems that the expansion of China's sporting goods enterprises has not led to the maturity of China's sports products market, which has also led to the current embarrassment.

"A mature market is based on consumers and sales channels."

In an interview with reporters, Wang Li named China and Japan and South Korea market comparison, such as buying tennis products or clothing, for Korean and Japanese consumers, they are very clear about what they want and what they want.

They will do a lot of searches, know what they need and know where to buy, so this is a knowledge-based market.

For example, in Japan, there are many special websites and shops that are suitable for beginners to buy racket.

However, the market channels of consumers and sports brands are not mature in the Chinese market.

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< p > his suggestion to Chinese brands is also very simple. "Take Wilson as an example, of course, we hope to increase the market share of tennis, but it is very important for the brand to have a reasonable speed of expansion, that is, we should not expand too much, otherwise it will cause a series of problems such as high inventory and so on, and the deterioration of business partnership."

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< p > < strong > holding the heating to retain the market < /strong > /p >

< p > as domestic sporting goods companies are tired of "going out of stock", foreign sporting goods giants such as Nike and Adidas begin to sink their sales channels and compete for the market of the two or three tier cities.

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< p > the era of "making money with eyes closed" is over.

In February this year, Anta President Ding Shizhong described the embarrassment of China's sporting goods industry.

In his current predicament, China's sports brand must end the road of rapid expansion, but need "warm up". "One does not compete with the international brand, we lock the lock or we can."

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< p > Ding Shizhong believes that the scale of China's sporting goods enterprises is too small at present, "the whole scale is not actually Nike's 1/10."

Competition is not only a competition for the current Chinese brand, but also a scale competition. "The first competition goal of the tug of war" is, first of all, how to lock together the 1 billion 300 million domestic population and not lose it, so as to establish a healthy competition.

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The idea of < p > has also been approved by Lining himself. He also hopes that Chinese sports brands will no longer repeat the same old road. "Because of the low threshold of sporting goods industry and the influx of large capital and resources into the industry, the whole industry will grow rapidly, but at the same time, it will lead to homogenization of business models and products."

He also admits: "despite the commitment to inventory and enhance channel profitability, but the company is still not good news."

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< p > at the same time, the head of Lining, Anta and XTEP three companies also emphasized healthy competition.

In Lining's eyes, the key to healthy competition lies in the adjustment of "enterprise gene" and "market opportunity" to avoid the homogenization of business mode.

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At present, several listed Chinese enterprises have begun to change at P.

Lining pointed out at the annual report conference that the main task of 2013 is to clean up inventory, adjust business mode and strengthen retail sales.

Anta also believes that the existing "brand + wholesale" mode is difficult to meet the market demand. In the future, it will pform to a retail oriented business mode, from the pursuit of order growth to the single store revenue.

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Li Hua, vice chairman of the China Sports Goods Industry Federation and director of the State Sports General Administration equipment center, believes that the industry pformation is imminent for Chinese sporting goods companies. Successful pformation enterprises will continue to grow and grow, and enterprises that are unable to pform will be eliminated. P

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< p > despite the crisis, Ding Shizhong remained optimistic. "The era of making money with closed eyes is over, and the era of deep ploughing is coming."

He said that over the past ten years, 70% of China's sporting goods enterprises' market returns came from market space and opportunities.

Ding Shizhong emphasized that the market is already everywhere gold, but it depends on how to pick it up. "Who used to run fast, who can pick up gold, and now the gold is buried in the ground. We need to rely on strength, management and executive power to dig out gold, which is the meaning of the so-called" deep tillage ".

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In 2012, whether Lining's huge losses or the first year of negative growth since Anta's creation, the most difficult period for both sides has passed. Facing the reshuffle of the whole industry in the future and the pformation of development, both sides are exploring their own road of change.

"Anta signed a contract with the Chinese Olympic Committee to represent China, which is related to national honor. Lining is taking a professional sports route, such as basketball, such as running."

Zhang Qing believes that the two are different marketing methods, and there is room for development.

The former embodies Chinese characteristics, while the latter builds up its brand image in mainstream projects. It is hard to say who can become the mainstream.

"Anta can not be neglected. Although Anta emphasizes the Olympic Games, it is doing campus basketball as well as its own basketball stars. While Lining is running basketball, he also sponsored five national teams."

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< p > the white paper is optimistic about the breakthrough of the bottleneck at the next stage. "This is the inevitable stage of rapid development of the industry.

From a positive point of view, the emergence of the adjustment cycle creates opportunities for solving deep-seated contradictions and creating new prospects for the future.

However, industry reshuffle and integration will also further accelerate.

Zhang Qing said that in the next five years, the big pattern of China's sporting goods industry will be formed after the shuffle. It is hard to say who can live to the end, but "the first group is two or three."

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