Stock Increase: Sports Brand Stores Discount To Normal

Semir, PEAK, Lining and other clothing brands semi annual report shows that this year, the stock has increased significantly, becoming the primary problem of development to adjust stores.

In order to clean up inventory, Lining closed stores, while Anta increased stores in two and more secondary businesses, but the two methods were not effective.

Analysts believe that the export of shoes and clothing has slowed down this year and the pressure of domestic demand has increased, resulting in intensified competition in the industry.

Just entering the autumn, but the Chinese movement and

The winter of clothing industry seems to have arrived in advance. Personnel changes and false earnings reports have been exposed one after another. The root of this series of problems is related to inventory problems.

In October 12th, Li Ning Co announced that the company's directors and chief financial officer (CFO)

Resigned as a result of personal career development, effective from November 1, 2012; Metersbonwe was exposed to "whitewash" the 2012 financial report; Anta was anxious to clarify the rumors that opened 600 stores during the year.

Since last year, the inventory problem has plagued China's brand of sports leisure shoes and clothing. Although the major brands have taken various measures to digest inventory, judging from the performance of the first half of this year, the inventory problem of shoes and clothing industry has not been alleviated.

Industry believes that China's sports and leisure footwear industry is facing the stock crisis brought about by the winter.

Difficult inventory problems difficult to brand shoes and clothing

This year, the growth rate of shoes and clothing market has slowed down significantly. According to the 2012 semi annual report released by several fashion brands, inventory problem is the primary problem faced by sports and casual wear brands.

For example, Semir's clothing inventory increased from 1 billion 100 million yuan last year to 1 billion 500 million yuan; PEAK's inventory rose from 420 million yuan at the end of last year to 530 million yuan.

According to Lining's 2011 Annual Report, net profit fell by 65.2% compared to the same period last year, and the gross profit margin dropped to 46.1%.

In 2011, the stock amount was 1 billion 133 million yuan, up 40.57% over the same period last year.

Net profit in the first half of this year was only 44 million yuan, a decrease of 84.9% compared with the same period last year, and its performance has dropped again.

In October 15th, media reports reported that Metersbonwe had been exposed to 2 billion 560 million yuan inventory pressure at the end of last year, and this year made false accounts to modify the 2012 results.

However, Metersbonwe suspended the day in October 15th and issued a clarification announcement that the financial situation was healthy, the inventory size was effectively controlled, and there was no problem of "whitewashing beautiful reports". As at the end of 2012 6, inventories decreased by 800 million yuan compared with the beginning of the year.

Cope with large-scale adjustment of store digestion inventory

Since last year, many core executives of Li Ning Co have left.

In July of this year, after the resignation of Zhang Zhiyong, the former chief executive of the company, TPG partner Jin Zhenjun served as executive director and executive vice president. Before hiring the new chief executive, Li Ning Co will be led by the founder and executive chairman, Lining, and executive vice president Jin Zhenjun.

After Jin Zhenjun took office, he told the media that the biggest goal of the company is to solve the inventory problem this year. "It is estimated that inventory will return to normal level in the next 6-12 months."

In the first half of this year, Lining closed more than 900 stores for cleaning up inventories, but the average inventory turnover period in the first half rose from 73 days in 2011 to 95 days.

There are also enterprises to digest inventory by expanding stores.

Recently, media reports reported that Anta plans to add 600 new stores during the year.

Although the news has not been officially confirmed by Anta, Anta has recently opened two factories in Guangzhou and Shanghai, a company manager said in an interview with the media. "These factory shops are mainly located in two or more secondary business circles, the price is relatively low, mainly to digest inventory."

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However, Anta's performance also failed to grow. In the first half of the year, financial data showed that its inventory rose from 618 million yuan last year to 628 million yuan, and net profit in the first half of this year was 770 million yuan, down 17% from the same period last year.

The investigation of sports brand stores is the norm

With the increase of inventory, the sales pressure of terminal stores has also increased, and the major sports and leisure clothing brands have been repeatedly discounted.

Chengdu, Chunxi Road and Yanshikou are the main centers of sports brands, including a number of sportswear stores including Anta and Lining. On the one hand, they sell new models, while they sell discounts, outdated products, scattered customers and shop assistants.

A brand store staff told reporters that this year there have been promotional activities, 7-8 discounts unequal.

Experts believe that clothing brands need to reshape market positioning.

China's garment industry is mainly an export-oriented economy. This year's garment industry exports slowed down, and domestic demand market pressure increased.

"The clothing industry in China belongs to a completely competitive market.

This year, the first tier cities and the two or three tier cities are all grim and fierce competition.

Under the current situation, grasping the domestic market is also a test for the market positioning of the brand. Lining's previous diversification strategy has led to the loss of the original core consumer group. The target customer group once was not clear, and in the future, it will make systematic adjustments to the product positioning.

But Metersbonwe has always regarded entertainment as an important channel to expand the market. "Homogeneity of enterprises is serious, so we need to re-establish brand personalization."

The person in charge of a sports consulting company is so analyzing.

Reporter Hou Tingting

Yao Yue Raymond: China

There is a widespread problem of overcapacity. It is said that "existing stocks can be sold for three years".

All customers and Metersbonwe have just sounded the alarm.

OnlyLady Shan: stock account is almost the rule of the clothing brand industry.

In the face of diversified sales channels, the most passive is franchisees. Many brands let franchisees eat their stocks and easily go into battle. They also seek to join or open up new sales channels.