China'S Sports Brand Inventory Is Soaring & Nbsp; Traditional Store Expansion Model Frustrated

Li Ning, Anta, peak and China trends all showed different degrees of performance decline or significant slowdown in growth. According to the data, the sharp increase in inventory amount was the main reason why Chinese sports brands were in deep trouble last year.

In addition to the high inventory problem, throughout 2011, NetEase Finance also found that last year, China's mainland Sports brand The growth rate of stores slowed down significantly. According to the annual report, the number of new stores of Li Ning, Anta and peak last year was 340, 229 and 582, respectively, far lower than the nearly 1000 new stores of each brand in previous years. Kappa brand is "the first time" that the number of stores in the whole year showed a negative growth trend, with a decrease of 16.8%

For this year's brand development, almost all Chinese sporting goods brands will be cleaned up stock And the Olympic strategy as the primary goal of this year.

On March 29, 2012, Li Ning released the 2011 performance report. So far, China's local sports brands have all handed over the "report card" of last year. According to the data, China's domestic sporting goods market has experienced a period of rapid growth of 30% in the past few years, and ushered in a comprehensive adjustment period in 2011. Li Ning, Anta, peak and China trends all showed different degrees of performance decline or significant slowdown in growth.

Among them, the sales volume of China Dongxiang group, the parent company of kappa brand, dropped significantly by 35.7% to 2.74 billion yuan last year, and its net profit decreased by 93% to 102 million yuan. The decline in sales and net profit ranked the highest among Chinese sports brands. In the throes of transformation, the sales volume of Li Ning Company decreased by 5.8% to 8.929 billion yuan, while the net profit decreased by 65.16% to 386 million yuan. In addition, Anta and peak previously released related announcements also showed that the growth of net profit also declined to a certain extent.

As for the decline of performance, almost all Chinese local sporting goods brands said that the reason was the sharp rise in inventory. The data showed that the inventory amount of Li Ning group last year was 1.133 billion yuan, which was 40.57% higher than that of 806 million yuan in the same period of last year; Peak's inventory increased from 335 million yuan at the end of 2010 to 421 million yuan, an increase of 25.67%; The inventory amount of China trend group last year was 404 million yuan, up 57.81% from 256 million yuan in the same period of last year.

As for the impact of inventory on enterprises, zhongyiqi, chief financial officer and executive director of Li Ning, said at the annual performance press conference that "Li Ning has indeed encountered a very serious inventory problem". As a result, the sales volume of Li Ning group in the first quarter of this year showed a negative growth trend. He predicted that the inventory will affect the annual performance of Li Ning this year, and the sales of Li Ning group will show low unit growth again this year.

Zhang Bin (microblog), a senior analyst in the textile industry of Guojin securities, told NetEase Finance that local sporting goods enterprises in China are so-called clothing brand enterprises, which "die on the stock".

He said, Clothing enterprises Different from other enterprises, if other enterprises find inventory problems, they can stop the import of raw materials, suspend production, clean up the inventory, and put them into production again when the inventory returns to normal level. As clothing enterprises need to adapt to the needs of consumers and constantly introduce new products, it is impossible to stop the import of raw materials and suspend production, resulting in an increasing amount of inventory.

Li Guangdou, a famous brand expert, also pointed out to NetEase Finance and economics that "the high level of shipment reflects the failure of the enterprise's business strategy". In the process of handling inventory, the enterprise must choose to reduce the price by a large margin, so it is difficult to recover the previous target cash flow, resulting in the loss of performance.

However, compared with China's local sports brands trapped in the "inventory quagmire", the world-famous sports brand Nike ADI is a great success. Nike's latest financial report shows that, benefited from the strong sales growth in North America and emerging markets including China and the substantial increase in new orders, the current net profit was 560 million US dollars, an increase of 7% compared with 523 million US dollars in the same period of last year, and the value of orders in the region increased significantly by 22%; Adidas's revenue last year was 13.344 billion euro, up 13% year-on-year, of which sales in China increased by 28% in the first nine months.

The huge contrast between the performance of Chinese and foreign sports brands and the huge impact of inventory on enterprises make the "de storage" as the key work of Chinese local brands. Li Ning, Anta, peak and China pointed out in the report that the main goal of this year will still be to ease the inventory pressure at the retail end and substantially clean up the inventory. Zhong Yiqi, chief financial officer and executive director of Li Ning, pointed out that Li Ning would increase its wholesale discount to dealers this year, actively take measures to buy back inventory, increase the construction of factory stores and discount stores, and strengthen the sales of network platforms.