Sports brand's future marketing ideas

As one of the major sports brands listed in Hong Kong, the ordering trend of Anta, Peak, Xtep and 361 has been one of the major information channels for the industry to observe the development of the domestic sports goods market. Judging from the orders of the four major brands in the first quarter of the coming year, with the exception of Anta's order book in the first quarter, the amount of orders increased by 15% year-on-year, Peak, Xtep, and 3161 exceeded 20%. Compared with the same period of last year, there were signs of slowing growth in orders.

According to the information released by Peak, the order amount for its first quarter of 2012 orders increased by 20.2% compared with orders in the same quarter of 2011. It is understood that Peak's ordering conference in the first quarter of 2012 launched a total of 197 garments, 140 footwear and 121 accessories new products, involving basketball, football, running, tennis, basic training, sports and other six major areas. Compared with the Spring 2011 trade fair data, the amount of footwear orders in the spring of 2012 increased by 18.7%, the amount of apparel orders increased by 19.1%, and the amount of orders for accessories increased by 167.5%.

In this regard, Peak CEO Xu Zhihua said: "Peak's market performance is the result of many factors. We insist on continuous innovation in product design and R & D, to attract consumers with high quality products. At the same time, Peak actively build an international professional sports brand image. , increase product added value and enhance overall competitiveness."

Xu Zhihua mentioned that Peak products had a certain increase in prices and was a "double digit" increase. He said that the main reason for the increase in prices was the increase in workers' wages and raw material costs. He believes that the price increase is not necessarily a bad thing, because product prices will speed up the industry's reshuffle, so that the industry's concentration to a higher level. In this case, leading brands will share certain benefits.

According to data from the first quarter of the first quarter of next year, the terminal expansion plan announced that the order amount for the first quarter of 2012 increased by 21% year-on-year, of which the average selling price of footwear and apparel products increased by 8% to 10%. For the first quarter of next year, the increase in orders was lower than the first quarter of this year. Ding Shuibo, Chief Executive Officer and Chief Executive Officer of Dingbu Group, responded that the growth rate is within the target range, because the Chinese New Year will be at the end of January next year, and the South will be softened after the Spring Festival. Therefore, The peak sales period has been shortened. He expects the order amount for the second quarter will be better than the first quarter.

As for the average inventory turnover days, which rose to 81 days, Ding Shuibo pointed out that as the Group saw the rising trend of raw material prices earlier, it purchased earlier and produced earlier, resulting in an increase in the number of inventory as of the end of June. However, he stressed that the current inventory is all third quarter goods, no secondary season goods. He predicts that the prices of raw materials will remain stable or slightly lower at the end of this year, the gross margin can maintain the level of the first half of the second half of the year, and inventory turnover days will also decline.

Ding Shuibo said that the industry's business growth level is about 15% to 18%, which is full of confidence for the company's super-industry level. He also pointed out that the price increase of the company's products has no special effect on sales, because the price increase rate is lower than the wage increase. He Ruibo, executive director, chief financial officer and company secretary of Xtep Group, said that he expects same-store sales to increase by "double digits" in July and August this year.

The Xtep Ordering Conference mentioned that the new “Urban” series will be launched next year. It is expected that it will account for about 15% of sales, but the unit price is higher than average, and the growth momentum is strong. It is expected that this series will be expanded to 30 percent of company sales in the next 2 to 3 years. %. In addition, the company will launch the children's series "Extra 1+1" next year, and will add 100 children's stores next year.

In the first quarter of next year, the order book value for the first quarter of next year increased by 23% year-on-year, of which the number of apparel and footwear products increased by 9% and 10% respectively. The average selling price of apparel and footwear products also increased by 12% and 14% respectively. In the first quarter of 2012, the first-quarter ordering fair saw a total of three product categories, including apparel, footwear and accessories, totaling more than 1,000 new products. In terms of footwear, the company launched new products in traditional product categories such as basketball, running, general training, cycling and outdoor leisure. In apparel, the company displayed more than 450 new products.

The advantages of accelerating the expansion of production orders have led some companies to increase the construction and investment of new plants and new equipment in order to further expand production capacity. Xtep’s 2011 interim financial report showed that in addition to the production capacity in Quanzhou, Fujian Province, Xtep plans to add approximately 3 million pairs of footwear production bases in Hunan Province, and it is expected to start production at the end of 2011. In addition, Xtep will set up a new plant in Anhui Province, which is expected to start production in 2013.

In terms of product innovation in footwear, Xtep launched eight series and 12 sub-series in the first half of the year, totaling approximately 2,000 new shoes, including running, football, and basketball. In terms of apparel products, in the first half of the year, it launched 6 series and 11 sub-series, totaling about 2,700 branded apparel. Peak also reported in the semi-annual report that in the second half of 2011, it will invest 80 million yuan in the construction of two existing production bases in Hui'an County of Fujian Province and Shanggao County of Jiangxi Province and purchase of new machines and equipment. After the Shanggao County plant in Jiangxi province has been fully put into operation at the end of 2012, the annual output of Peak footwear products will increase to approximately 15.7 million pairs. After the plant in Hui'an County of Fujian Province was fully put into operation at the end of 2013, the annual output of Peak's apparel products will increase to 18.7 million pieces.

Peak's total footwear output in the first half of 2011 was 12.3 million pairs, of which approximately 48% were self-manufactured, 52% were outsourced and contract manufacturing; total clothing production was 24.7 million, 24.7% were self-produced, and 75.3% were outsourced. Due to factors such as shortage of labor in the southeast coastal areas of China, Peak plans to build another clothing production base in Heze City, Shandong Province, and the total capital expenditure is expected to be RMB 1 billion.

In research and development, Peak also opened four R&D studios in Beijing, Guangzhou, Quanzhou and Los Angeles. These studios employed a total of about 250 research and design professionals. Through the mutual exchange of different studio design teams, the Group’s design and innovation capabilities have been greatly improved. In the first half of 2011, Peak introduced a total of 381 new footwear products, 644 new apparel products and 399 new accessory products to the market. In addition to product functionality and style, Peak also focuses on environmental protection. It will continue to introduce more environmentally friendly materials and adopt more energy-saving processes.

In sharp contrast to this, Xtep’s inventory in the first half of 2011 increased significantly by 157.9% year-on-year to RMB 887 million, and the inventory of finished goods alone was as high as RMB 474 million, which was 5.46 times that at the end of last year. Inventories remained high, and Xtep’s net operating cash inflow during the first half of the year was negatively 335 million yuan. Peak's inventory for the first half of 2011 was 409 million yuan, an increase of 41% over the same period last year. The average inventory turnover days were 50 days, and 2010 was 38 days. The net cash inflow from operating activities was reduced from RMB 471 million in the first half of 2010 to RMB 130 million, a drop of up to 68.22%.

Channels sinking in the expansion strategy of market stores, Hu Yiqiang, deputy general manager of Zhengda Sports Co., Ltd. believes that with the acceleration of urbanization, the capacity of urban consumption will continue to grow. The future consumer market will continue to expand from the first and second tier cities to the third and fourth tier cities. .

In recent years, with the acceleration of urbanization and the increase in the cost of first-line market development and the saturation of capacity, the market structure of the shoe and clothing industry has also changed. Many international brands and domestic brands have begun to shift their focus in the domestic market. , Has extended the market to second and third tier cities. In the face of the trend that the footwear and apparel industry has “have become the third or fourth line,” Zhengda Sports has undergone a drastic consolidation and upgrade in the market terminal.

Also looking forward to the third- and fourth-tier markets are the elegant birds. In recent years, the market performance of the elegant bird has been stable and steady. After years of quietly working, it has reached the scale of 5,000 stores in the country. It can be said that it is the leader of the second-tier brands. The noble bird who entered the expansion period declared that in the future, 1,000 to 2,000 new stores will be established. In the next few years, there will be hopes to reach or reach the scale of the first-line brand stores, and their confidence will come from the development achievements of the third and fourth line markets.

Among the many sports brands, the noble birds faced pressure from competitors to come into the market and quickly expand, but they did not blindly expand rapidly in the national market. Instead, they focused on cultivating third- and fourth-tier cities, while seizing the frontline and strengthening. In the second-tier market, efforts are being made to rapidly set up stores, improve the efficiency of stores, and increase the density of outlets.

According to the introduction of the person in charge of noble bird marketing, in many small and medium-sized cities can see that the noble bird has increased the "big shop" construction efforts, such as in Baoding, Hebei Class A business circle opened 316 square meters of bird's nest shop in Shandong Zaozhuang out 380 square meters of bird nest shop. At the same time, the noble bird carries on the image promotion of the terminal store. Under the guidance of the "City Distribution" channel strategy, as of July this year, the number of franchised bird stores increased by more than 1,000, an increase of 7.5% over the same period of last year. The success rate of newly opened stores across the country has increased significantly, the channel structure has continued to improve, and the efficiency of multiple stores has improved. There are more than a dozen shops on the street in cities like Hezhou and Guigang in Guangxi.