Self Rescue And Transformation: A New Way To Survive In Jinjiang Sports Shoes And Clothing
In the clothing industry of Fujian and even the entire Chinese garment industry, Quanzhou Jinjiang sportswear has always been the most famous and sportswear. Jinjiang, whose population is only about 2 million and belongs to the three line county-level cities in Quanzhou, has emerged in the three or four line regional market hegemony, including Anta sports (HK:02020), XTEP International (HK:01368), HK:01361 (31st degree) (HK:01361), PEAK sports (HK:01968), Meck International (HK:00953), and NASDAQ:EDS (NASDAQ:EDS) and a number of listed companies such as Hongxing Erke, del Hui and Jordan.
3 years of industrial crisis and internal consumption competition, evolved several types of different styles of Jinjiang Department "self rescue train of thought".
"To grow into an international brand, the comprehensive overseas product, marketing, talent and supply chain is very important. At present, Jinjiang's preparations and experience in this regard are not enough. Ma Gang, a well-known independent critic of the domestic sports industry, said, "however, the last round of industry reshuffle has greatly promoted and improved the management mode and operation level of local sports brands. We can see that some brands have begun to try overseas products."
XTEP Turn around and save yourself by Anta
In the Department of Jinjiang, Anta and XTEP split the top two industries in HK $38 billion 200 million and HK $7 billion 600 million. In this long round of inventory crisis and industry shuffling, the two self rescue mode has also become an important reference for other Jinjiang Department "second tier" members.
In August 6th, Anta group released its mid term performance report in 2014, where turnover increased by 22.4% to RMB 4 billion 120 million yuan, and gross margin increased 4 percentage points to 45.1%, making executives excited. Ding Shizhong, chairman and chief executive officer of Anta's board of directors, bluntly said: "the first half performance far exceeded the market expectations." (previous) 24 consecutive months of decline in performance, so that the entire team is facing unprecedented challenges. We should be proud of our initiative to resist pressure and transform retail business successfully. "
specific As of the reporting period, there were 7701 stores, including 987 children's sporting goods stores, and 441 FILA stores in mainland China, Hongkong and Macao. Anta has also been the first sporting goods brand in the domestic market share of sports footwear products for thirteenth consecutive years.
Anta's self rescue from the crisis represents the transformation of Jinjiang's many enterprises in terms of revenue and expenditure, inventory clearance and efficiency improvement.
Ding Shizhong admitted that in the past few years, China's sporting goods industry has faced problems such as low threshold, blurred brand image, lack of product differentiation, excessive expansion of shops and poor inventory management. "Industry participants are making efforts to revitalization, including controlling future orders, closing inefficient stores, launching popular products, reforming retail channels and improving operations. The pace of recovery of different brands is different. The speed of recovery depends on their basic conditions, competitive advantages, and innovation and execution capabilities."
Compared with Anta's step-by-step self-help mode, XTEP's way of increasing revenue and reducing expenditure is more radical.
In May, Ding Shuibo, chief executive of XTEP (China) Limited, predicted that the worst time had passed. The gross margin level of the company will remain between 40%~41% in 2014. The discount of terminal products has also narrowed to seven to twenty percent off from the previous forty percent off, and hopes that the electricity business can increase significantly in the next three years.
However, XTEP's total revenue dropped by 21.7% in 2013, and its net profit shrank from 25.2% to 606 million yuan. In the past two years, despite the efforts to clean up stocks and raise turnover rates, the company has launched the fashion brand "THEIA". The company has announced the launch of 120 "THEIA" brand self operated stores in 2013, though this category is the main battlefield of BELLE, Daphne and other mature brands.
Moreover, in order to seek profit support, XTEP group has entered the real estate sector in recent years. The XTEP group and the Fujian Jialong group, which is also a Fujian businessman, are deeply co - operative. The XTEP real estate forum was established in Bengbu, Liaoning, Shenyang, Fujian, Xiamen and Quanzhou in Anhui. Ma Gang said that the transfer of funds is the confidence index of the management of the company's main business, and the incentives for XTEP to make women's shoes and real estate business deserve our attention.
Internal friction of the Jinjiang system
Compared with the dormant revival of the two leading companies, the rest of the sportswear brands are still at a low point of operation.
Merck international revealed that the number of shops in the group distributor network has been further reduced from about 562 at the end of last year to 408 at the end of June this year. The group had to reduce distributors' bulk sales orders to avoid accumulation of inventory in distribution channels. Today, the company's share price is only HK $0.38, and its market value is less than HK $450 million.
The data released by PEAK and 31st order will be slightly better than that of Meck international. The total order volume (calculated at wholesale price) in the first quarter of 2015 has increased by about 10%. There are Nike, Adidas and other international first-line brands occupy the second tier market, there are Lining (Lining store), China trend, and other new and old rivals such as UNIQLO cross-border competition, once booming Jinjiang sporting goods industry is coming to the watershed.
For a long time, the highly homogeneous competition of sportswear and articles in Jinjiang has been repeatedly challenged. This industry crisis has been amplified again, and the phenomenon of fast fashion brand crossover catering market has been exacerbated. Ma Gang said: "whether it is UNIQLO, Decathlon (Decathlon store) or H&M, it has robbed the local clothing consumer groups. All these brands will affect the pan sports consumer group.
Ma Gang, frankly speaking, the brand of 360 degrees and PEAK are attacked by the brand of Anta and XTEP, and the brand of "Jordan" and "noble bird shop", which are challenged by the strong challenges in the terminal market. The future of these enterprises depends directly on the contribution of new growth directions to major revenue businesses.
- Related reading
Wangfujing Department Store Will Set Up Mobile Cash Register To Greatly Increase Consumption Experience.
|- Fashion shoes | Nike SB X Air Jordan 1 Low Cooperation Brand New Color Shoes, Exposure, Scratch Property?
- Fashion shoes | Adidas Crazy BYW X 2 Black Fluorescent Green Color Shoes Released, Excellent Foot Feel.
- Fashion shoes | 阿迪达斯三叶草 Continental 80 复古鞋款全新小麦配色释出
- Fashion brand | Heron Preston Fake Certification "Aurhoized Fakes" Series For The First Time
- Fashion brand | Adidas Originals X DESCENDANT 2019 Autumn Winter Joint Series Will Soon Be On Shelves.
- Fashion shoes | Vans Sk8-Hi 鞋款全新“Violet Indigo”解构配色上架
- Fashion shoes | Air Jordan 12 Shoes Classic Black Gold Matching Official Chart Release, Sale Date Update
- Fashion brand | Fear Of God ESSENTIALS X The Marathon Clothing 全新联乘系列发售
- Fashion brand | Nike 2019 Autumn And Winter New Zipper Double Faced Fleece Jacket Series Exposure, 4 Colors Optional
- Fashion shoes | Reebok Instapump Fury OG Orange Purple Candy Color Shoes On The Shelves, Eye-Catching Collocation
- Implementation Of "Zero Inventory" Franchisee In Children'S Footwear Industry
- Local Sports Brands Are Mixed With Joy.
- 500 Enterprises Such As Shoes And Clothing In Wenzhou Responded Positively To "Machine Substitutions".
- Lining Responded By Giving Up Sponsorship Of The International Gymnastics Team: Reluctantly Giving Up.
- After The "Cold Winter", Can Coach Transformation Turn The Corner?
- Online And Offline Discount Sales Of Women'S Shoes Ahead Of "Winter"
- Transformation And Upgrading: Jinjiang Footwear Industry Goes Out Of The "Upward Curve".
- How About Yu Chuang Shopping Mall?
- Jinjiang's Financial Reports Are Getting More And More Embarrassed.
- 2014 Guangdong Fashion Week Moved To Haizhu Textile Park For The First Time.