Interpretation Of The Six Major Sports Brands In Mid 2012

Simultaneous decline in turnover and net profit

Turnover of major brands (RMB millions)

Net profit of major brands (RMB millions)

In August 6th,

The first half of the report was published, with a turnover of 3 billion 934 million yuan (RMB, the same below) in the first half of the year, down 11.6% compared to the same period last year, and net profit of 770 million yuan, down 17% compared with the same period last year.

Coincidentally, Anta earned 3 billion 930 million yuan in the first half of the year, exceeding Lining's 50 million yuan, which is just the same as Lining's performance over Anta in 2011.

However, Anta's "Ping Ping" Lining's performance is also declining, but the net profit attributable to shareholders is 769 million yuan, which is 18 times that of Lining. This is also confirmed after the announcement of the semi annual report.

Behind the two leading brands, they are 361 yuan, 2 billion 870 million yuan, net profit 644 million yuan, XTEP accounts for 2 billion 610 million yuan, net profit 467 million yuan, PEAK accounts for 1 billion 610 million yuan, net profit 240 million yuan, China's trend accounts for 832 million yuan, net profit 97 million yuan.

Compared with the same period in the first half of 2011, in addition to the 1.4% growth in XTEP's revenue, other brands had a "double slide" situation, all of which were attributed to the overall weakness of the Chinese consumer goods market.

A long way to inventory

People in the industry have joked that even if all garment enterprises in China stop production now, only the backlog goods in the warehouse can be sold to the domestic clothing sales enterprises for at least 3 years.

The seriousness of inventory backlog problem in footwear industry is evident.

For several major sporting goods brands, inventory will become the focus of their work in the next two or three years.

According to the China Daily, the stock of Li Ning Co, Anta and PEAK is still on the rise. As at the end of June, they were 1 billion 138 million yuan, 628 million yuan and 529 million yuan respectively, while XTEP, 31st degree and China's trend decreased to 701 million yuan, 366 million yuan and 359 million yuan respectively.

To add insult to injury, in the first half of the year, the average inventory turnover days of various companies were rising.

Obviously,

The road is still long.

Channel adjustment to

Data show that the number of main brand stores of Lining, Anta, XTEP and PEAK has returned to more than 7000 levels after some integration.

The net sales increased from 185 to 8050, while China's trend closed 569 to 2550.

"After running a horse enclosure, it is bound to return to reason. One of the most important reasons is the return of rational consumption."

Senior industry insider

It is believed that the development of the brand must be guided by the market. Under the environment of insufficient consumption power and oversupply of products, the stock brought by blind expansion and the expansion of stores in the past few years have become the burden of the major brands. "Normally, the adjustment of the channel will continue to deepen, and the number of stores between 6000 and 7000 is more reasonable", which has already covered 80% of the country's market.