Local Sports Brands Slashed Prices Slightly Weaker

　　 PEAK Sports Recently announced results show that PEAK's overall turnover grew year-on-year, but net profit fell 5.4% year-on-year. Anta and Lining issued earlier related announcements also showed that in the net profit growth also appeared to a certain degree of decline. Ma Gang, an independent critic of sports industry, believes that the sporting goods industry is experiencing the most painful adjustment period in the industry, which has fallen from high income and high growth and intensified competition in the industry.

It is understood that in recent years, the market size of domestic sporting goods has decreased from 20% per year to 13% in 2011. It is estimated that the growth rate in 2012 will further slow down to around 5%-8%.

　 Local sports brand performance is not ideal.

A few days ago, PEAK sports released its performance data. In the year of 2011, PEAK's operating income was 4 billion 647 million yuan, up 9.4% from 4 billion 250 million yuan in 2010, and the net profit in 2011 was 778 million yuan, down 5.4% compared with 822 million yuan in 2010. The profit margin has dropped from 19.4% in 2010 to 16.7% in last year's profit margin.

Apart from PEAK, the performance of many other sports brands is not ideal. Anta The 2011 Annual Report released yesterday showed that the company's net profit reached 1 billion 730 million yuan last year, an increase of 11.5% over the same period in 2010, slightly lower than market expectations, and the first net profit increase of less than 20% in recent years in Anta. Gross margin was 0.5 percentage points lower than in 2010.

Lining released the 2011 performance bulletin, also known as the slow growth of orders and the recovery of some dealers inventory impact, group income in 2011 is expected to decline 6%-7% compared with 2010, and net profit will also be lower than 2010's 11.7% decline by 7-8 percentage points.

　　 Slowing industry growth will become a trend

In fact, Local sporting goods Last year, the industry has been slightly "weak", the market is overstock, and other brands have sharply reduced prices, causing fierce competition in the market.

For example, PEAK's annual orders grew by about 24% in 2011, but the annual sales increased by 9.4%. That is to say, in 2011, PEAK spent more than half a year to digest inventory. Data show that inventory in 2011 was 421 million yuan, an increase of 25.67% over the same period last year.

The number of PEAK stores in 2012 will be further reduced, while the order is slightly higher than the same period last year. From the operational level, PEAK's performance is still under great pressure. Ding Shizhong, chairman and chief executive of Anta, said that Anta will provide guidance for distributors and franchisees to reduce inventory risks, and will also achieve the goal of cleaning up inventories during the year through factory stores and online sales.

"In the past, sporting goods brands were relying too much on the growth of channel size to drive growth, and now the number of channels is approaching the growth pole. The sporting goods industry needs to break through category breakthroughs and promote growth through single store promotion, so growth is slowing down naturally." Ma Gang thinks.