China's sporting goods industry seems to have signs of going out of its shadow. Date: 2014-06-26 14:52
In 2014, China's sporting goods industry seems to have come out of signs of haze. In March 2014, Li Ning announced its 2013 full-year results. Despite sales revenue still falling, the loss area has narrowed; in April 2014, Anta 2014 fourth-quarter trade fair data showed that Anta has been three consecutive times. In the quarter, the number of high-order orders increased, while same-store sales also increased year-on-year; the performance of several other major domestic sportswear companies also increased compared to 2012.
The performance recovery is obviously closely related to the transformation of various companies. In the recent sports industry summit, Anta Board Chairman and CEO Ding Shizhong said that the way out of the sporting goods industry is innovation, not just product innovation, but also marketing. And business model innovation. In the past year, Anta has taken the lead in warming up with its retail transformation business model and precise product positioning. The data of 2014 trade fairs have started to turn positive, and the market value has also grown significantly, which has almost reached the combined market value of several other listed companies in the industry.
The extensive development of the golden decade has been the golden decade of the sporting goods industry in the past decade. During this period, the Chinese sportswear industry maintained an annual rapid growth of 30% to 50%. The rapidly expanding Chinese market has achieved ANTA, Li Ning, Peak, Hongxing Erke, 361, Xtep and a number of local sporting goods brands. In the words of Ding Shizhong's words, the past decade was an era in which people could make money with their eyes closed, and sports brands had the opportunity to occupy the market as soon as they expanded their store quickly.
However, this good day has been blew up since 2011, and the whole industry of sporting goods has fallen into a vicious circle of declining performance, clearing up high inventory, and continuing to close stores. Li Ning, Anta, Peak, 361, China Trends, Xtep and other sports The overall number of sports brands that have closed stores exceeds at least 3,000.
On the face of it, the inventory overstock caused by overcapacity and rapid expansion is in fact a change in the supply and demand relationship of the market. Nowadays consumersâ€™ demands for brands have gradually changed from satisfying basic needs to becoming personalized and cost-effective. Personalization is also required and functionality is also required. Traditional sports products use more distribution levels, have a longer time to market, and have a slow market response. This has led to a gradual disconnect between products and the market, coupled with the impact of fast fashion products. Fall into the bottom. Zhang Qing analysis.
In the past decade, China's sporting goods companies basically adopted the wholesale + brand model. Because the external environment is good, for sporting goods companies, they only need to vigorously build brands, sign up for various race resources, sign sports star celebrities, If the brand is approved by the dealer, it can quickly open stores and expand channels.
The core of the brand+wholesale model is that brand owners do their business and then wholesale the goods to dealers. For brand owners, the entire business activity ends here. As for whether the goods are ultimately sold to consumers, it is How to sell to consumers, consumers feedback, these content brands do not need to consider.
However, the hidden dangers of the brand + wholesale model have always existed. An Jiezhiyang, the chief analyst of An Jiezhi Yang Consulting Company, told reporters that the dealers manufacture products, wholesale them to dealers, and dealers sell them to consumers. Whether this product is really a favorite of consumers, brand owners and distributors are in the dark. Moreover, the brand + wholesale model adopts a fixed ordering mode. Dealers place orders at the order meeting. The brand dealers deliver the goods to dealers and the entire business activity is over. Even in the actual sales process, a product is particularly popular, or a product is particularly difficult to sell, there is no way to be flexible adjustment, special selling products will be sold out no more, dealers have no way to replenish, especially bad The products sold can only become stockpiled and piled up in warehouses. Many dealers have no way or ability to sell a certain place, but in other places, products that may sell well are dispatched across regions.
Start the retail transformation In fact, after a decade of extensive development, Anta, Li Ning and other first-line sports brands have also recognized the drawbacks of the wholesale model, have changed the retail model. In the current escalation of consumer demand, lack of flexibility, and can not determine the real needs of the consumer brand + wholesale model can no longer meet demand. Brand owners must develop and produce products based on consumer demand, and then flexibly handle inventory in all regions based on actual sales. This is also an important reason for Anta to initiate retail transformation. An official from ANTA Sports Products said.
However, each company's practice is not the same for each retailer. Li Ning established a channel revival plan to introduce small-batch, multi-SKU tactics on products, and introduced a new business model that combines guided orders, rapid replenishment, and rapid response to improve dealers' order guidance and group shipments. arrangement.
The core concept of Anta Retail's transformation is to focus on retailing, focus on consumer demand, and provide consumers with their favorite and most cost-effective products. At the beginning of last year, Anta developed and launched a retail-oriented approach based on industry conditions and its own situation, from brand strength enhancement, retail culture construction, management efficiency enhancement, product competitiveness enhancement, flexible supply chain, inventory control, channel optimization, etc. Initiate a comprehensive transformation and upgrade of the company.
Anta is establishing a corporate culture and values â€‹â€‹that match the retail model, building a consumer-oriented retail management system and a retail company operating efficiency evaluation system, and using various retail indicators as an important measure of product management efficiency. In terms of organizational structure, a more flat organizational structure was created, and the competitiveness of terminal shops and retailers was improved through streamlining.
KAPPA, which is targeted at sports fashion, has been particularly hard hit by fast fashion brands in recent years, and its performance has fallen even more severely. However, as a listed company, there is no shortage of funds. However, the asset-light model has aggravated the shrinkage of channels, and many channel distributors have given up KAPPA, which also led to the decision of the company to go direct and increase the expansion of e-commerce channels.
An Jie believes that the retail model is easy to achieve vertical management and refined marketing, the market plans to implement strong, most accurate market information, better reflect the brand image. However, it requires high professionalism and high manpower cost, and it is also a huge test for the ability of distributors.
The retail transformation of domestic sporting goods companies is just a necessary condition for the re-emergence of sports brands, but it is not a sufficient condition. What is more important is the further promotion of product design, application of new materials, brand communication methods, supply chain management, etc. to make products more personalized and differentiated. These are the most fundamental things. Zhang Qing stressed.
Popular or professional?
For many years, Chinaâ€™s domestic sports industry has been criticized as the head of sports, selling casual dog meat. This industry positioning has also led the industry to develop rapidly for 10 years, but the next time is obviously no longer possible. It is to continue to take leisure. The positioning of the general public is still a true professional orientation. Every sporting goods company is trying and thinking.
In the past ten years, Peak has gradually established professional brand support in the field of basketball. Now how can Peak Sports CEO Xu Zhihua allow such professional support to expand in more areas, and Peak's next specialized product line is running. The core technology of specialized products is to allow top athletes to use your product. This requires professional skills and material properties must reach a higher level. In the future, we will increase the shock absorption and support of running sports. The strength of research and development, continuous technical accumulation, the establishment of a variety of foot model library. Xu Zhihua told reporters.
For brands like Peak who just entered the running field, Xu Zhihua frankly stated that he only started with life-oriented running and did not enter the professional running field. This requires constant technical accumulation and can not be done in a short time.
The positioning of Anta brand is a professional public brand. Therefore, the introduction of the most cost-effective professional product is ANTA's product development direction in the coming years. For example, Anta has launched a priceless strategy on the basketball category, priced the professional basketball shoes endorsed by the NBA as 399, making it a national sneaker so that most ordinary consumers can wear professional basketball shoes at a small price. Play basketball. In the 2014 Expo, Anta also launched the Breathing Net 2.0 running shoes. This is an important product of Anta this year. Its main features are breathable, light and sticking feet, which can help consumers to better experience the joy of running.
Regardless of whether it is professionalization or popularization, in fact, it must meet the needs of the expansion of the market. Xu Zhihua thinks that Chinaâ€™s specialized sports market has only just begun. The market size is limited, and there is no need for a specialization strategy to go too fast. The popularization of positioning, if there is no characteristic, can not get rid of the problem of homogeneity, inventory problems can not be avoided.
No matter how the new hot spots change, sportswear is still clothing. The market for sportswear will continue to grow, and sportswear must be turned into everyday clothes. Everyone is willing to wear, always willing to wear, the scale of the market will naturally be able to continue to grow, so the trend of fashion, regular wear is the growing trend of sportswear. An Jie expressed his point of view.
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