With Li Ning, a layoff order, the growth of domestic sports brands into trouble once again become the focus of public opinion. Li Ning, Anta , special steps and a number of listed sporting goods company, in 2012 the latest data ordering, inventory numbers, plans to open shop in shop etc. worst level in recent years. Domestic sports brand collective encounter industry down inflection point, the prelude to layoffs will be opened?
Local sports brands fall into the dilemma of growth
Just after the Spring Festival, Li Ning Company announced the layoffs in order to reduce staff costs, the current specific number has not yet been determined. According to the performance forecast released by Li Ning, the Group's revenue in 2011 is expected to drop by 6% -7% over 2010.
Shao Ligang, chief consultant of a domestic clothing consultancy, told reporters: "The reason why Li Ning laid off its staff and explained that the company has some problems with open source is that there is no other way to reduce expenditure through redundancy. This is the simplest mode for a company to obtain profits. When the company's funds have been under pressure.
In fact, caught in the market growth dilemma is not just sports tycoon Li Ning, Pick, Xtep, 361 degrees, Anta and other domestic sports brands are also facing similar problems.
Reporter Anta from turnover once Li Ning learned that rising costs and inventory backlog of sales channels further exacerbated the competition in the domestic sports retail market, the Group expects a certain amount of pressure in the future.
In addition, Peak said that in 2011 the Chinese sporting goods industry slowdown in demand, the increasingly fierce competition, the Group's distribution channels in excess inventory in recent months continued to increase.
361 degrees also complained: "November-December 2011 sales plunged, the fourth quarter of the channel inventory ratio rose to 4.2 times the speed of new stores is the slowest ever."
Sequelae of "crazy" expansion
From the expansion track of domestic sports brands can be found, nothing less than with the help of the Beijing Olympic Games Dongfeng and a listing boom in Hong Kong, adequate capital for businesses even more powerful.
According to Dongxing Securities apparel industry analyst Tan can track the statistical analysis, 2007-2009 listed in the local market, the number of local sports brand enterprises total number reached nearly 20,000, the end of 2009 the number of terminals in late 2006 increased nearly 2 times.
However, behind the frenzied expansion, exposed are the problems such as the declining scale growth, the high degree of market concentration and the high inventory level. This explains to some extent why a number of listed companies lowered their 2012 sales forecasts and even Reduce costs through layoffs.
"Listed companies have a certain amount of cash reserves and smooth financing channels, so cautious, expect those second and third-line non-listed companies will be even more bad days." Zhang Qiao, president of "key sports" brand research institute.
Brand strategy expert Lee Kwang-Do said that in 2011 the local sports brand competition has changed, Anta in the business revenue surpassed Li Ning. "At present, the predicament faced by local brands is that there is a strong enemy before the pursuit of chasing soldiers. In the case of serious product homogeneity, the local brands did not grow well after the Beijing Olympic Games."
In addition to the above-mentioned "symptoms," Tan predicts that domestic sports brands will continue to "price rise" in the future. On the one hand, it is an inevitable cost factor; on the other hand, it is replaced by a simple "extension + price increase" that is based on the simple extension of an enterprise's channel of expansion. The profit-driven mode will also be transformed from the original "volume and price increase" to "Price" based.
Domestic sports brand outlet geometry?
According to the industry analysis, the sports brand enterprises not only face the pressure of homogenization competition in the same industry, but also are squeezed by the market of the leisure industry. On the one hand, a large number of low-cost variety and rapid make-up and transfer cargo capacity of local leisure brand flowering everywhere, on the other hand ZARA, UNIQLO and other foreign brand innovation, the local sportswear industry is under pressure.
Li Ning announced the beginning of layoffs, but the first piece of dominoes, layoffs of other sports brands or will kick off this. "Shao Ligang told reporters that 2012 is bound to be a very difficult year for domestic sports brand since 2008, Sports brands crazy expansion of the market planted "bombs" will be detonated one by one, the sports brand of late spring has come, to see who can get over.
The industry generally believes that the crazy expansion of the local sports brand is currently facing a new cycle. High premium foreign brands Nike, Adidas, the two giants firmly control the high-end market of domestic sports brands, local brands how to deal with sports brand "foreign consumption" tendency in the white-hot competition in the breakthrough is the proposition enterprises should think about.
"Sports brands have the spirit and cultural connotation, local brands in order to break through, you need to combine with fashion, art and other elements to create cultural symbols in line with the times consumers." Lee said.
Zhang Qing also suggested that in the brand of serious homogeneity, low-end products a large number of excess under the premise, to survive this period, and have the opportunity to grasp the industry opportunity out of the encirclement, I am afraid we still need to return to the track of value innovation .
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