Sports Brands Such As Li Ning Peak Have Closed Their Stores In Succession, Which Is Tantamount To Breaking Their Arms To Survive

On September 7, the London Olympic Games just passed did not give Sports industry Bring miracles.

At the end of August, Beijing was extremely hot, but the sports industry suffered a cold spell. Up to now, local sports brands such as Li Ning, Anta and Peak have all released their interim reports for the first half of 2012. Data shows that their performance in the first half of the year declined seriously, and the whole industry suffered from growth difficulties.

On August 22, 2012, Li Ning The company announced that as of June 30, 2012, the group's revenue decreased by 9.5% to 3.88 billion yuan. In addition, PEAK Sports released its interim performance announcement, which showed that as of June 30, equity holders should account for 240 million yuan of profit, down 43.35% year on year; The turnover was 1.61 billion yuan, a year-on-year decrease of 28.50%.

"Under the challenge of changing demand and rising costs, the Group expects that the competition pattern of China's sporting goods market will change in the next three years." Li Ning believes that in the long run, in the context of China's economic transformation from investment driven to consumption driven, the Group's consumer goods industry will still benefit, But at the same time, the competition in China's sporting goods industry is also intensifying, and the competition of sports brands for channels, sports resources and media resources is becoming increasingly fierce. Consumers also put forward higher requirements for brand and product value.

On the afternoon of August 28, at the fifth floor of Huatang Mall near Shilibao, Chaoyang Road, Beijing, our reporter saw that Chinese sports brands such as Li Ning, 361 °, Anta, and Special Walk were all offering discounts, ranging from 50% to 20%, but not many consumers patronized them.

In this regard, Peak When interviewed by our reporter, the deputy director of sports public relations said that the performance of domestic sports brands in the first half of this year was not very good. Now the discount promotion is mainly for de stocking. Although Nike and Adidas do not discount in stores, they have lower discounts in factory stores.

Some industry insiders who do not want to be named pointed out that Nike's sales in China in the first quarter of this year also declined by 4%, and its orders in the second quarter, the third quarter and the future also showed a downward trend. In addition, with the increase of inventory, Nike has said that it will reduce discounts and increase the layout of its factory stores.

The interim report of Peak Sports showed that by the end of June, the number of retail outlets of Peak Sports in China had decreased by 747 to 7059 compared with the end of last year. According to PEAK's retail network optimization plan, the number of retail outlets will be reduced to 6500 by the end of 2012.

"Compared with the number of stores closed by Li Ning, PEAK doesn't close many stores," the aforementioned deputy director of public relations of PEAK Sports told our reporter. According to our reporter, in the first half of 2012, Li Ning Group continued to promote the reform of sales channels, made structural adjustments to stores, and closed 1200 inefficient stores.

A person close to Li Ning told our reporter that Li Ning is the largest sports brand in China. When an industry is impacted, it is also the most affected by the industry. Like Nokia in the mobile phone industry, it is also the most affected in the adjustment period of the industry. Li Ning is indeed the enterprise that closes the most stores in the whole industry. This is just an appearance, and it cannot be said that Li Ning is no good.

In addition, the total number of Kappa brand stores in the first half of the year of China Trends also decreased from 3119 at the end of last year to 2550 now, a decrease of 569, or 18.2%.

As for the move of local sports brands closing stores and destocking in succession, Zhang Qing said in an interview with our reporter that closing stores and destocking is a way to survive with broken arms, which is a correction of the past rapid growth. Many stores were inefficient stores in those years, and did not make money or lose money. As a listed company, it wanted to achieve results, so it opened stores crazily, As a dealer, its current efficiency is not good, so it has to close some inefficient stores and optimize channels to ensure the sales of efficient stores.