Traditional Business Has Encountered "Ceiling" &Nbsp; Overall Layout Of Shops Has Slowed Down.

The trend of Kappa brand's parent company is "the first time".

By the end of 2011, the number of stores in China was 3119, with a total reduction of 632 from 3751 at the end of last year, with a decrease of 16.8%.

In addition, the annual report also shows that since the second half of last year, a number of Chinese local sports brands have entered the "closed shop stage".

Anta added 229 new stores last year, but the semi annual report submitted by its company last August showed that as of June 30, 2011, the number of stores in Anta has increased by 295.

It can be seen that conservative estimates, excluding the second half of the Anta group's new stores, Anta last year, the number of Chinese stores close to 100.

PEAK also said that this year will continue to implement the strategy of "opening large stores and closing stores to further enhance the average sales area of retail outlets".

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Li Ning Co CEO Zhang Zhiyong before accepting NetEase finance interview also pointed out that the sports goods retail store's labor cost increase, plus the urban commercial bustling area rent increased substantially, overall, the enterprise through the expansion of the number of stores to enhance the performance has reached the ceiling, improve the existing unit store area output efficiency is the necessary move.

"For PEAK, this year is a year of adjustment," Liu Xiang, PEAK's public relations director, said in an interview. "On opening up strategy, PEAK will open larger retail outlets and close more smaller and less efficient retail outlets through distributors and retail outlets operators".

In response, Zhang Bin, senior analyst of the state textile and securities industry, said that the growth of China's local sports brands in the past few years can be likened to the "brutal growth" of the "big pie" style. The rapid growth of business performance is stimulated by the large number of stores and intensive advertising bombing.

"At that time, the sports goods market in many parts of China was still a blank area. Relying on a large number of new stores, these Chinese sporting goods brands have indeed made brilliant achievements in those years."

"But with the gradual saturation of these markets and the gradual maturity of Chinese consumer psychology, the difference and specificity of sporting goods are gradually becoming apparent. Consumers will measure the use, brand and price of products before buying them."

Zhang Bin pointed out that in this case, China's local sports brands still attach importance to the increase in the number of stores, which is both a strategic deviation and a helpless move. "If you open a shop, you will have a loss of stores, and you will gradually lose market share and be abandoned by consumers."

He also pointed out that after the number of existing stores reaches a certain level, the expansion of channels will encounter bottlenecks. It will be difficult to maintain a relatively fast growth in the case of single store profits.

For China this year

"Especially since last year, the commercial real estate has been rising strongly, the rents of urban commercial areas have risen sharply, and the labor costs of sporting goods retailers have increased, so that the performance of enterprises can't be easily realized by expanding the number of stores in the past few years."