Local Sporting Goods Industry Enters The Rest Period

In the first half of this year, six listed companies in Hongkong.

In August, Lining and other six sporting goods enterprises announced their latest "achievements". Anta's turnover increased the highest, up by 28.9% compared with the same period last year. China's trend income increased instead of minus 45.1%, a year-on-year increase, and the bottom of the income growth list.

The growth rate of China's sporting goods market has increased by 30% since 2004, and signs of saturation have even appeared in the first tier cities.

There is only one reason for happiness, and sometimes the same is the cause of unhappiness.

Lining and

It is not just Lining and China that are facing inventory problems.

In the first half of this year, the stock value of XTEP was 887 million yuan, compared with 46 thousand and 300 yuan in the same period last year, an increase of about 92%, of which the finished product amounted to 474 million yuan, compared with 84 million yuan in the first half of last year, the former was 5.64 times the latter.

It is understood that since 2008, including cotton prices, labor costs continued to rise sharply, local sporting goods companies have increased factory prices to deal with cost pressures, the cumulative effect of price increases, the local movement.

An executive of a sporting goods company said that the differentiation of the Chinese market is extremely serious. The eastern coast is the consumption level of the developed countries. Some areas in the West may be only a little better than Africa, and the development space to the mainland is still very large.

Multinational brands have become more and more appetites for small and medium-sized cities after "settling" big cities. Adidas has announced that it will open 2500 new stores in China in the next 3 years, most of which will be distributed in China's three or four tier cities, and there is nowhere to hide local brands. When integrating with Nike and Adidas, the integration of industries will be inevitable.

Compared with the integration among enterprises, the integration within enterprises may be more rapid.

For the necessity of this integration, a clothing industry leader said: "on a road in some core business circles, the sales outlets of the same brand may have 7~8 homes at most, and in fact, 1 stores will be enough."

Market analyst Ma Gang statistics, from 2006 to 2009, the number of Lining's stores increased from 4297 to 7249, with a net increase of 2952, and the number of stores in Anta also increased by 2483, with a large number of stores.

However, "Cheng also Xiao He, defeated Xiao He".

Insiders pointed out that almost all the domestic sports brands chose the way of franchising to add new stores. Compared with self owned stores, franchise does not require brand enterprises to invest in their own capital, personnel, and low cost, and brand enterprises can also be a shopkeeper.

In the early days of the establishment of sports brand enterprises, franchise can help enterprises expand rapidly, but after a certain stage, because franchisees and brand enterprises are not always in the same mind, franchisees will open up stores, sell fake goods, inventory and so on. The marginal benefits brought by opening stores to brand enterprises will gradually diminishing, and the growth space of enterprises will be narrower and narrower.

For this growth pattern, the clothing industry commented: "the biggest side effect is that when the order is opened every year, brand enterprises are often kidnapped by dealers, dealers are bargaining, and channels are in the hands of dealers, so the initiative is also in their hands.

On this issue, Li Ning Co regrettably, after the listing in Hongkong in 2004, if there was a large number of Direct stores at the beginning, the performance of today's performance would be very different.

As of June 30th of this year, Li Ning Co has been right.