PEAK Sequoia Capital Reduction Industry Concern Xu Zhihua Talk About Inventory Strategy

< p > recently, due to the substantial reduction of Sequoia Capital, PEAK was concerned about the industry. Some analysts pointed out that the incident reflected the investors' concerns about PEAK and even the whole sports industry.

In this regard, < a href= "http://sjfzxm.com/news/index_f.asp" > PEAK < /a > group CEO Xu Zhihua expressed no concern, "it is normal for fund to reduce cash holdings for a certain number of years.

As far as I know, the reduction of PEAK is due to the expiry of the fund.

< /p >

< p > from the trend of PEAK stock, the closing price of 27 days was 1.51 yuan / share after the announcement in December 26, 2012, and as of the date of issue, PEAK's closing price was 1.52 yuan / share.

There is no obvious drift, which seems to indicate Xu Zhihua's calm.

But behind the calm, the heavily criticized inventory problem can not be avoided.

< /p >

< p > > a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > industry usually pays attention to the ratio of sale to chime, that is, the proportion of goods sold in a certain period of time to the total purchase. This is an indicator for "how much sales of goods can be sold during the season to recover the cost and cost of sales", so that it is easy to determine when discount sales or liquidation can be processed.

"The general reasonable ratio is 80%~85%, and down to 70%~80%, which means that when the inventory is 30%, there will be some pressure."

Xu Zhihua did not disclose the exact selling out ratio of PEAK due to the silent period before the so-called annual report, but he also acknowledged that inventory was still under control, but it had already been under great pressure.

< /p >

< p > for the whole sports apparel industry, solving inventory is a pressing matter of the moment, and the actions of different brands are slightly different.

PEAK did not choose the way to buy back. Instead, it expected to make dealers self digest their inventory in the form of capital compensation.

"In fact, no matter which form is reflected in the retail sale of terminal retail, only PEAK will strictly control the discount price at no lower than the cost price level."

In the direct digestion of inventory problems, Xu Zhihua admits that there is no more special way, but it also stressed that, because PEAK has been expanding overseas markets, so in the digestion of inventory, such an overseas market in Africa can become the advantage of PEAK.

< /p >

< p > sales channels for the major brands are favored. Xu Zhihua admits PEAK is also building at the same time.

As we all know, online shopping has become a common way to dump goods. However, due to the difference of management system, the price of the brand often falls significantly below the selling price of the entity store dealer, resulting in the latter's operation being affected.

Xu Zhihua realized the existence of this problem. At the very beginning of establishing a network sales channel, it was strictly stipulated that discounted sales on the Internet must be a product that has been in season for some time.

"After strict control, the above problems will not appear. According to our data, a lot of products are priced at a discount even after the discount on the Internet."

Xu Zhihua briefed reporters.

< /p >

< p > in addition, although PEAK also urgently needs to solve the increasingly serious problem of < a href= "http://sjfzxm.com/news/index_s.asp" > inventory < /a >, PEAK will focus on further upgrading the channel terminal in 2013.

"A large number of inventories are due to the rapid development of the garment industry in the past few years. Good expectations of inertia have led to an overcapacity and an increase in orders. This good expectation was not achieved in 2010.

In order to better reduce inventory, we must strengthen the terminal sales ability and reduce the order quantity of dealers.

Xu Zhihua said.

< /p >

< p > specific measures, first of all, the launch of the seventh generation stores, which means that nearly 1000 shops will be replaced by PEAK, so that the quality and service of the shops will be further upgraded so as to enhance the sales capacity of single stores.

In addition, training the store manager as a "buyer" and being invited to participate in the order meeting is also a means for PEAK to further guide reasonable ordering.

"Clothing sales sometimes need some intuition, and these store managers are most directly aware of their customers' aesthetic tendency."

Xu Zhihua introduced.

< /p >

< p > in addition to the above mentioned terminal channels, Xu Zhihua also emphasized the upgrading of R & D.

"In the past, we all expanded by rapid imitation, resulting in an increase in inventories, but the decline in market demand prompted us to shift to independent research and development."

In Xu Zhihua's view, the biggest problem of independent research and development is the long production cycle, which needs a series of processes such as market research, R & D, collection, feedback and improvement, but it can help enterprises pform from large inventory.

"At the same time, we must retain some of our capacity and continue to imitate quickly to meet immediate market demand."

< /p >