As domestic sports brand dealers have a meager profit, domestic sports brand dealers will withdraw from the market within two years, and manufacturers will conduct direct sales.
In recent months, the constant changes in temperature have gradually begun to heat up, and people have begun to enjoy outdoor activities. The investigation was conducted on Shenyang's sports branded apparel sales, and domestic sports branded apparel such as Li Ning, Jordan, and Anta sold poorly. In the survey, the reporter found that due to the diversification of consumer demand at the same time, with the increasing number of brands in business, leisure, outdoor, and lifestyle, the space for selection is also very large, and the single demand for sports brands is becoming less and less, resulting in domestic production. Sports brand dealers often sell less than 70% off when selling goods.
According to industry analysts, domestic sports brand dealers will withdraw from the market within two years due to the meager profits of domestic sports brand distributors. Manufacturers will conduct direct sales.
Domestic brands fall into inventory crisis
Yesterday, reporters have found in many sporting goods stores in Shenyang Taiyuan Street Stadium. Li Ning, Jordan, Anta and other domestic brands are all priced at 300 yuan, which are all 70% off. According to the sales staff, despite the discounted sales, from last winter until now, domestic brands including Li Ning, Jordan, Anta and other brands have experienced slow performance growth.
According to major domestic sports brand announcements, in 2011, there was a large inventory of domestic sports brands collectively, and inventory clearance was a major task for major sporting goods brands. The major domestic sports brands are now trapped by inventory and the industry is in full swing.
JP Morgan's analysis report believes that Li Ning's full-year revenue will be 13% in 2011, a 60% reversal of earnings. Peak growth also slowed down, and Peak’s published data showed that Peak’s performance growth slowed down significantly in the third quarter of 2011. Same-store sales in the third quarter of 2011 also increased by only 6.2% compared to the same period last year. Prior to this, Peak's order amount increased by 20% year-on-year.
Too little money to make the agent "escape"
Due to the increase in raw materials and labor costs, domestic sports brands started to adjust prices from the end of 2011, and the unit price rose by 10% to 20%.
However, due to the diversification of consumer demand, more and more brands such as business, leisure, outdoor, and life are becoming more and more popular, and consumers have already gone through a period of worship for sports brands. At present, there is less and less demand for sports brands. Due to the decrease in purchasing power, the reporter found during the survey that sportswear sold by sports brand dealers were all sold at a discount of up to 70%.
As dealers acted as agents of domestic sports brand clothing, the agents fled and the manufacturers began to take direct measures. Analysis of the industry, it is expected that the manufacturers will all direct sales within two years.
According to statistics, more than half of the agents now choose to “escapeâ€.
International brands hit domestic brands
The mainstream of sportswear brand sales in the market is still dominated by adidas and Nike, and its dominant position is difficult to shake in the short term. And these domestic sports brands mainly occupy the middle and low-end consumer markets in second and third-tier cities. As domestic brands mainly include Xtep, Anta, etc., there is little differentiation between brands, homogeneity is more serious, and competition between brands is fiercer.
At the same time that domestic brands are attentive, international brands have already started to make efforts in second and third-tier cities in China.
Among them, Nike and Adidas successively stated that they will increase the construction of shops in the second and third-tier markets in the future, and plan to introduce products with prices closer to the second and third-tier markets, targeting the main market of domestic sports brands. The data shows that domestic brands account for 70%-80% of income from second- and third-tier cities. This will bring greater impact on sales of domestic brands.
In recent months, the constant changes in temperature have gradually begun to heat up, and people have begun to enjoy outdoor activities. The investigation was conducted on Shenyang's sports branded apparel sales, and domestic sports branded apparel such as Li Ning, Jordan, and Anta sold poorly. In the survey, the reporter found that due to the diversification of consumer demand at the same time, with the increasing number of brands in business, leisure, outdoor, and lifestyle, the space for selection is also very large, and the single demand for sports brands is becoming less and less, resulting in domestic production. Sports brand dealers often sell less than 70% off when selling goods.
According to industry analysts, domestic sports brand dealers will withdraw from the market within two years due to the meager profits of domestic sports brand distributors. Manufacturers will conduct direct sales.
Domestic brands fall into inventory crisis
Yesterday, reporters have found in many sporting goods stores in Shenyang Taiyuan Street Stadium. Li Ning, Jordan, Anta and other domestic brands are all priced at 300 yuan, which are all 70% off. According to the sales staff, despite the discounted sales, from last winter until now, domestic brands including Li Ning, Jordan, Anta and other brands have experienced slow performance growth.
According to major domestic sports brand announcements, in 2011, there was a large inventory of domestic sports brands collectively, and inventory clearance was a major task for major sporting goods brands. The major domestic sports brands are now trapped by inventory and the industry is in full swing.
JP Morgan's analysis report believes that Li Ning's full-year revenue will be 13% in 2011, a 60% reversal of earnings. Peak growth also slowed down, and Peak’s published data showed that Peak’s performance growth slowed down significantly in the third quarter of 2011. Same-store sales in the third quarter of 2011 also increased by only 6.2% compared to the same period last year. Prior to this, Peak's order amount increased by 20% year-on-year.
Too little money to make the agent "escape"
Due to the increase in raw materials and labor costs, domestic sports brands started to adjust prices from the end of 2011, and the unit price rose by 10% to 20%.
However, due to the diversification of consumer demand, more and more brands such as business, leisure, outdoor, and life are becoming more and more popular, and consumers have already gone through a period of worship for sports brands. At present, there is less and less demand for sports brands. Due to the decrease in purchasing power, the reporter found during the survey that sportswear sold by sports brand dealers were all sold at a discount of up to 70%.
As dealers acted as agents of domestic sports brand clothing, the agents fled and the manufacturers began to take direct measures. Analysis of the industry, it is expected that the manufacturers will all direct sales within two years.
According to statistics, more than half of the agents now choose to “escapeâ€.
International brands hit domestic brands
The mainstream of sportswear brand sales in the market is still dominated by adidas and Nike, and its dominant position is difficult to shake in the short term. And these domestic sports brands mainly occupy the middle and low-end consumer markets in second and third-tier cities. As domestic brands mainly include Xtep, Anta, etc., there is little differentiation between brands, homogeneity is more serious, and competition between brands is fiercer.
At the same time that domestic brands are attentive, international brands have already started to make efforts in second and third-tier cities in China.
Among them, Nike and Adidas successively stated that they will increase the construction of shops in the second and third-tier markets in the future, and plan to introduce products with prices closer to the second and third-tier markets, targeting the main market of domestic sports brands. The data shows that domestic brands account for 70%-80% of income from second- and third-tier cities. This will bring greater impact on sales of domestic brands.
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