New decade of homegrown sports brand

The new golden decade for local sports brands Date: 2016-03-21 20:28

Is this marathon newspaper named?

Recently lost weight, is it thin?

Today, conversations between friends are increasingly linked to sports and fitness.

The national fitness concept has also led to the sale of sporting goods. The reporter noted that the domestic sportswear companies Anta, 361, etc.

The company’s stock movements have produced a beautiful report card for 5 years. Among them, Peak Sports released its 2015 financial report on March 10, and its annual operating income was 3.107 billion yuan, an increase of 9.33% over the same period last year.

Since 2012, both international and domestic sporting goods brands have experienced almost all of their performance and inventory inconvenience. Li Ning, Puma, Peak and other companies have used the reduced number of stores;

Nowadays, China's indigenous sporting goods brand; did the new golden decade really come?

Welcome to recovery

After 10 years of rapid development, Chinese sporting goods brands entered collectively from 2012 to 2013;

China's six major sporting goods brands including Li Ning came up with the worst report card in the past 10 years, and the industry's growth rate has dropped sharply. In 2012, except for Xtep, where there was a slight increase, the revenue of the other five major brands declined by more than 10%. Among them, Li Ning is the most tragic, with a loss of nearly 2 billion yuan in 2012, the first loss for eight years in the listing; during the same period, Anta also fell for the first time in five years in the listing performance, net profit fell 21.5% to 1.358 billion yuan; Peak net profit fell by a higher rate of 60.1 % to 3.1 billion yuan.

In spite of this, in this process, the consumption potential of sporting goods in the second and third tier markets was tapped, and the market ushered in the stage of integration and consumption upgrading.

The winter situation has changed since the end of 2014. China Investment Advisor Zhu Qingyi, a light industry researcher, confirmed that the domestic sports brand has basically recovered from 2015.

According to the latest financial report of 361 Group, the company's turnover in 2015 increased by 14.1% to 4.459 billion yuan, gross profit was 1.823 billion yuan, and gross profit margin was maintained at 40.9%. Anta's performance announced in February this year is even more gratifying. Anta’s revenue exceeded 10 billion for the first time. In 2015, revenue was 11.126 billion yuan, an increase of 24.7%, gross profit reached 5.185 billion yuan, and gross profit margin reached a new high of 46.62%. Li Ning announced earlier this year that its 2015 performance is expected to achieve breakeven. In the financial year from 2012 to 2014, Li Ning’s losses were approximately 1.98 billion, 390 million, and 781 million yuan respectively.

According to Zhang Qing, CEO of Beijing Key Road Sports Consulting Co., Ltd., after the domestic sports brands experienced a decline from 2012 to 2013, they began to bottom up in the second half of 2014. The trend of recovery in 2015 has become more obvious, and gradually it has gone from stock to inventory. The quagmire came out and the industry picked up further.

New golden decade

In Zhang Qing's view, the collective warming of the sports industry results from both internal and external factors.

The internal cause is the self-rescue and reform of the enterprise itself. Taking Li Ning as an example, the losses of successive years forced Li Ning to make a clear commercial position between professional sports and sports fashion: costing 1.4 billion to 1.8 billion yuan; channel rejuvenation plan, supporting dealers to clear inventory, repurchase, and integration optimization Sales channels, this change has become an important reason for Li Ning to turn a profit.

Another brand, 361, was found in the field of children's clothing. In the New World, the children's brand of 361 has been profitable for six consecutive years since its inception in 2009. In 2015, the turnover accounted for more than 10% of the group's total turnover. China is fully liberalized; the second-child policy will promote the further release of children's clothing, and the demographic dividend brought by the new wave of baby boomers will boost consumption by nearly RMB 1 trillion in four or five years.

The external reason is to benefit from the impact of the overall environment. The upgrading of mass sports in China and the rapid development of the sports industry.

Zhu Qingyi also agrees with the above viewpoint; on the one hand, these local sportswear companies have taken some positive measures in destocking in the past few years. On the other hand, there are many policies for sports favors in 2015, and national sports awareness has increased, and the demand for sporting goods has expanded.

In October 2014, the State Council issued a "Some Opinions on Accelerating the Development of the Sports Industry and Promoting Sports Consumption" proposed that by 2025 the total size of the sports industry exceeds 5 trillion yuan and the country has a target of 500 million sports population. If we count 500 million people for not less than two times per week and participate in more than half an hour of sports activities each week, there will be a body of more than 10 billion sports activities, sportswear, shoes, equipment, venues and coaches. There will be a full range of demand growth.

Peng Xiao, deputy chairman of the China Sporting Goods Industry Federation and deputy director of the National Sports General Administration’s sports equipment and equipment center, believes that with the promotion of the national favorable policy, China's sporting goods industry is expected to usher in another; the golden decade. Public statistics show that at present, the total value of China's sports industry is 356.3 billion yuan, accounting for only 0.6% of GDP, while the proportion of the sports industry in the world's more developed countries accounts for more than 2% of GDP. It can be seen that the future development of China's sports industry is huge.

This makes international sporting goods brands such as Adidas and Nike grappling with this huge market.

In the face of the current recovery, domestic sportswear brands are not happy too soon. The big explosion of China's sports industry will inevitably attract foreign brands to invest more energy in the Chinese market. Zhu Qingjian stressed that; domestic sportswear brands need to be improved in product development and sales, and further increase the added value of their products.

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