Sports Brands Are Showing Signs Of Recovery.

From the beginning of Anta to the end of Lining, the five big China

They have released their own earnings in 2014 (because sports goods are not the main business of China's trend, so we temporarily put aside the trend of China).

Data show that the total revenue of the five major sports brands is up to 27 billion 200 million, and the total number of stores is 33681. Apart from the loss of Lining, the total profit of the four brands is 2 billion 900 million.

It should be said that these figures are much better than in 2013. Combined with the current sports reform curtain headed by football, China's sporting goods industry has shown signs of recovery.

Taking history as a mirror, we can look forward to the future. We will make a comparative analysis of 8 key data that directly show operational efficiency in various earnings reports, and help you quickly understand the operation results of the five major sports brands in 2014.

Detailed data on the five sports brands

Figure 1: revenue

8 billion 920 million, this is

The business revenue in 2014, the rare thing about this figure, is that Anta has not only resumed growth after declining for two consecutive years, but also broke through 8 billion 900 million of 2011's record, which is 2 billion 200 million more than that of the industry.

And Lining's 6 billion 730 million yuan revenue is also higher than the industry's third XTEP 4 billion 780 million higher.

Some netizens joked that Lining had already secured the position of the second generation of the industry. This is a ridicule for Lining, a former industry supremacy, and an inability to fight.

In addition, the revenue of 31st degree was 3 billion 910 million, PEAK's revenue was 2 billion 840 million, and the gap between the five major sports brands began to slowly open.

Data 2: gross profit margin

From the gross margin, the sporting goods industry is definitely not a sunset industry. The biggest gross profit margin in 2014 was Anta, which increased by 3.4 percentage points to 45.1% compared with 2013. After that, Lining 44.6%, XTEP 40.8%, and 360 degrees 40.9%, PEAK's gross profit margin at the bottom also increased to 38%.

High margin affects the attitude of investors to enterprises. According to Buffett's stock selection method, gross margin is more than 40%, which is the standard of stock selection.

Gao Maori is a financial indicator valued by Buffett. He believes that only a company with sustained competitiveness can maintain its high margin.

From this data point of view, the sporting goods industry is still a "very rich way" industry.

Data 3: net profit

Anta earned a full 1 billion, bit rate (480 million), 360 degree (390 million) and PEAK (320 million) total profit is more than 500 million higher, it should be stable domestic sports brand first position.

Ding Shizhong repeatedly mentioned that Anta had benefited from the vertically integrated supply chain mode, which enabled Anta to go deep into all aspects of the entire supply chain. In other words, profits in all sectors were taken away by Anta.

Data 4: loss

781 million yuan.

In 2014, the amount of losses in 2014, Lining is the five largest brand in the only loss, this is his third consecutive years of loss, from 2012's huge loss to 2 billion, to 2013 loss 392 million, and then to 2014 loss 781 million, Li Ning Co in three years, nearly 3 billion 200 million loss, which is not equal to 2007 to 2011 Li Ning Co profit sum.

But the good news is that 781 million is lower than the previous estimate of 820 million. Mr. Lining told the media in Hongkong that in 2015, it will boost development by increasing the proportion of electricity providers and products.

19.3%, this is the proportion of advertising and publicity expenses of Li Ning Co in 2014, ranking the top five sports brands, 6 percentage points higher than that of second of XTEP (13.1%).

It is worth mentioning that this figure is also 4.9 percentage points lower than that in 2013, and Lining's advertising and publicity expenses accounted for 1/4 of its turnover in 2013.

The main reason is that the two resources of CBA and Wade cost Lining too much money. It is rumoured that the signing fee of CBA is 5 years 2 billion, and Wade's signing fee is 10 years and 100 million US dollars.

Just for these two signings, Li Ning Co has to take out more than 450 million of real gold and silver (including sports equipment) every year. According to the sports industry signing fee, which is calculated by the conventional standard of the promotion fee 1:2, Lining has to spend 900 million to do the promotion in order to achieve certain results.

Last year, Lining, who was short of money, cut off Wade's China trip in 2014 and lost the base camp Gymnastics Center. Therefore, Li Ning Co is still in a "very willful" state for signing sports resources and promoting resources.

The good news is that Lining management is ready to face the reality and plan to reduce Sponsorship Resources and promotion in 2015, so as to reduce operating expenses and make profits.

And Anta, XTEP and XTEP account for advertising.

Data 6: inventory turnover days

On the 109 day, this is Lining's 2014 stock turnover day, which is still the longest in the five major sports brands, an increase of 5 days over 2013.

The number of days of inventory turnover refers to the number of days that an enterprise has experienced from the beginning of inventory acquisition to consumption and sales.

The less turnover days, the faster the inventory realisation.

This unpleasant number means that the sales of the company are not satisfactory.

The best performance in this respect is Anta, 58 days.

Next is the 31st degree and the PEAK, all for more than 70 days.

XTEP's 91 day is in the last second place.

Data 7: days of receivables turnover

On the 167 day, it was the average trade receivable turnover day in 2014, which was 38 days less than that in 2013. But it is still the longest in the five major sports brands, and is nearly 5 times the 35 days of Anta.

Average turnover days of trade receivables refer to the time taken by enterprises to obtain receivables from accounts receivable and to convert funds into cash.

Simply speaking, after the wholesale goods are sold out, they will have to wait six months before they can receive the accounts.

Lining and XTEP differ little in this respect. They are divided into two or three places in 71 days and 85 days. PEAK is another brand breaking 100 days, with 114 days in the countdown second.

Data 8: number of shops

The 5626 is the number of Li Ning Co stores in 2014, which turned out to be the smallest number of shops in the five major sports brands, 289 less than in 2013, and 2629 less than the 8255 peak in 2011.

Among them, 1202 direct shops, accounting for 21.4% of the total number of stores, should be noted that according to Lining's earnings report data, in 2015, Lining brand wholesale income of 3 billion 630 million, direct income 2 billion 120 million, that is, 21.4% of the direct shop, contributed 36.8% of the business income, on the one hand, said that Lining's direct business performance is pretty good, but also shows that its non self operated channel operation has not yet improved.

The number of Anta, XTEP and 31st degree shops has been maintained at more than 7000, while PEAK's 6004 are only a little larger than that of Lining.

From the above data, Anta has completed the pformation from runner to leader. Last year, a series of actions such as Gymnastics Center, NBA partners and so on, can see Anta's ambition.

In the past few years, Anta's business style has been steady, but no further strategic adjustment and action can be seen. How to challenge international brands in the Chinese market still needs to wait and see.

In 2014, Lining's performance also made XTEP, who was once expected to be the second in the industry, temporarily dispelled the idea. In 2015, it proposed that channel orientation, localization, price reduction, increasing the proportion of electricity providers, and embracing the Internet can be said to be the biggest and most resolute company in the industry. However, any one of these goals needs a very strong executive power, and the executive force is precisely what Li Ning Co lacks most. How to change this chronic illness is the first problem faced by Mr. Lining after his comeback.

XTEP's performance in 2014 was not satisfactory, and 4 billion 800 million of its revenue was not the embodiment of real strength. In 2015, XTEP positioned itself back to professional sports. However, when the domestic sports resources were completely separated by Anta and Lining, how to have a core connection with sports, and to achieve the goal of entertainment, leisure market and sports market will be the first consideration for Ding Shuibo.

361 is one of the least optimistic companies. The biggest bright spot in 2014 is Baidu's children's positioning shoes, but the gimmick of this product is greater than commercial value, especially the cooperation with the Internet giants such as Baidu.

In addition, in 2014, the volunteers and costumes of the Youth Olympic Games and the Asian Games were sponsored. In 2016, they would also sponsor Rio Olympic staff and volunteers clothing, and a large amount of sponsorship fees did not receive a real commercial return.

As the youngest of the five, PEAK has been insisting on positioning the basketball market. It has a good performance, but this also limits its own development. In 2014, the core sports resource NBA partner was taken away by Anta. Many people had to be a bad news, but for PEAK, it was also an opportunity to be pushed out. What PEAK should do now is to talk less about internationalization and make every effort to expand from basketball to multi market.

Postscript:

At first, I wanted to do a simple data comparison to see the development of the domestic sports brand. However, during the rush but Procrastination of writing, I read a lot of recent Lining's public relations articles about what they had been doing recently. I feel that Mr. Lining's effort after the return is quite promising.

These actions focus on three aspects: lightening the burden (such as layoffs, abandoning unnecessary spending and sponsorship, etc.), focusing on key projects (badminton and basketball), trying to cross the border with products in the field of science and Technology (such as cooperation with millet and badminton racket).

Looking forward to expectations, from the perspective of the development of this national brand, and then pull a harsh voice:

The first is strategy.

It should be said that at present, Lining's actions are still in the category of shrinkage adjustment, that is to say, on the one hand, we should go to Wuwu and make breakthroughs on the one hand; we are doing the right thing, but we can not see the farther strategic roadmap.

From 06 years of Nike+ development to Fuel Band, Nike finally decided to abandon hardware and focus on creating the ecosystem of systematic services, which is the choice of the company's genes.

Although China has never lacked a variety of innovations in the Internet and new technologies, the new economic genes of Ma Yun and Lei Jun are hard to be excavated within a short period of time by Mr. Lining himself and the company, and the outside people are hard to get full confidence after TPG; in other words, these new actions are more like the need for telling the story to the market.

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