Shoe companies orders decline in order to reduce the amount of orders

With the closing of the major sports brands' 2013 event, the new direction of the development of the sporting goods industry is gradually clear. The data shows that the orders of major shoe companies continue to decline, and many powerful companies even appear as high as "double digits". Informed sources said that this is the result of the company's initiative to drive down the volume of orders, and the purpose is also very clear: no longer take the previously blind expansion of the road, and instead seek to move forward to improve profit margins. Orders at the drop-off channel "The 2008 order meeting, the order volume doubled up at every turn, and now it is reversed." Insiders said that this year's sports brand order orders are still in a decline channel, people are pleased The decline is gradually narrowing. The order volume of Xtep’s orders in the fourth quarter was between 15% and 17%, and the average annual decline was between 15% and 20%; 361° was down 23% in spring and summer, 19% in autumn, and 17% in winter. The year-end ordering performance also fell by around 20%. However, Peak's order book performance changed a lot, with spring being the same as last year and down 18.5% in the second quarter. Peak said that "because of the change in the order model, the Group believes that the orders made at the ordering conference since the third quarter of 2013 are incomparable, and therefore the results of order orders will be suspended from the quarter to avoid misunderstandings." Li Ning Company ceased to announce the performance of the order meeting at the Q2 trade fair 2013.

The person thinks that it is understandable that major brands evade the announcement of the performance of the fair. After all, after shouting and shouting in 2008, overproduction was a problem that was not fully realized at the time. At the forefront, the injury was also the most obvious. The entire sports brand plate was the first to expose the problem. As long as the malignant inventory is not digested by one day, it will not be possible for companies to increase their order volume just for surface data.

Inventory problems are not unique to domestic sports brands. For example, in the Adidas Group, the second-tier brand Reebok, its series of products in the first quarter of wholesale sales, "double-digit" decline, so Adidas's first quarter of this year's wholesale business revenue decreased by 3%, while the data in the same period last year was a year-on-year growth 10%. Last year, Reebok Q4 sales fell 12% to 428 million euros, due to Reebok brand impairment 265 million euros in the fourth quarter of last year, Adidas loss. In 2008, Umbro, which was acquired by Nike for 285 million pounds, was sold at a loss of US$225 million in December last year. The sales counters of large shopping malls in the Mainland have basically been difficult to trace to Yinbao, and the retailers of mainland China’s agents, the Yupbao brand, have also claimed compensation from Nike for their huge losses. Japan’s largest sports brand Mizuno was also abandoned collectively by Chinese agents because of its weak profitability.

"Adidas's new products are now also hit 25% off, which in the past will never appear." Sports brand analysts say, the first line of domestic sports brands to do is to avoid confrontation with their front, grab the vacant The second and third-tier international brands market, with high cost-effective products to stabilize the main battlefield.

The company is looking forward to bottoming out, "If you don't, you will be stricken." A middle-level manager of the Xtep Group said that the market can't be just hot or cold, or else it doesn't conform to the laws of the market. Today, many companies have learned lessons from homogenization and price warfare. They exert their efforts on the functional application of product R&D and the innovation of production technologies to avoid homogenization and reduce dependence on front-line workers. In the meeting mode, the control was shifted from wholesale to retail, and the data management system was used to increase the proportion of replenishment and turnover. In the later period, from the aspect of image enhancement of terminal stores, efforts were made to grasp the marketing of the online platform and achieve all-round self-innovation.

"Now many franchisees have taken a half-stock spot method, ordering will naturally decline." Insiders believe that such changes in data can be seen as an active act, the purpose is to rebound after the pressure to warm up .

Such a change has achieved certain results. At the order meeting of Peak 2014 in the spring and summer of 2014, it can be seen that the eyes of most foreign distributors focus on the two types of shelves: functional shoes for celebrity models and newly launched cultural and leisure shoes. In addition, some functions are more obvious, such as faster belts. Dry outdoor clothing also attracted some dealers to stop.

The person in charge of Peak told the media that Peak in order to respond to changes in the market initiative to reduce the supply, and the original order will change from the ** system to the "explosive model" to switch orders: If the dealer is expected to sell 100 within six months For 10,000 pieces of clothing, 700,000 pieces can be ordered first, and the remaining 300,000 pieces will be filled in later according to market conditions. At the ordering meeting in the first half of this year, some of Peak’s “explosive models” basketball shoes received 400,000 pairs of compensation cards, worth more than 100 million yuan, and they initially showed signs of recovery in the footwear industry.

Xtep also emphasizes the importance of "explosive models" returning orders. It will speed up its production cycle for "explosive models". For example, next year, it will strive to ship a pair of jeans for 7 days to 10 days, and it will be able to complete "explosive models" in 15 days. single.

Anta also showed signs of recovery. Last week, ANTA Sports Products Co., Ltd. announced its 2013 first-half results announcement and 2014Q1 trade fair data. During the reporting period, the company's operating income was 3.37 billion yuan, gross margin 41.1%, and net margin 18.6%. Although the industry competition is still fierce, the operating data shows that the retail sales of Anta began to take effect. The turnover, gross profit margin and net profit rate are all higher than market expectations. In particular, the 2014Q1 trade fair data achieved the first positive growth since 2012Q3. On the day, Anta shares closed at HK$9.33, setting a new high in 15 months. The industry optimistically estimates that next year sports brands will drop their burdens and go to the bottom to achieve a rebound.

Industry adjustment continues to continue next year In addition to continuing to seek domestic and international channels to digest inventory, and change orders to actively reduce the amount of orders, sports brands have never stopped in other areas. This year, the outdoor field, which is hot in all walks of life, has become a new force category for many sports brands. For example, at the recent Xtep Spring Product Ordering Conference in 2014, more than 20 types of cycling outfits, which are hot spots in the city’s new trend, unveiled. It is reported that these cycling suits will not appear in Xtep's physical stores, but take e-commerce channels. In addition, Adidas has opened more than 30 outdoor stores in the new business district in China, mainly in northern China, and will continue to open new stores this year, and the total number will reach around 100.

"The development of new products needs a clear brand positioning as a support, otherwise it will only generate new types of inventory." Zhong Minglang, head of Shanghai Mingyi Strategic Consulting Co., Ltd. believes that we must face up to the current situation of falling orders, even though companies are Actively adjust the ordering method, but this is also due to the poor flow of funds, dealers are still under pressure to make adjustments under the premise of inventory pressure. The industry cannot be blindly optimistic about the slight increase in some categories. According to the current situation, he personally believes that the shock will continue. The consumer's consumption habits and purchase methods are changing. The demand for pure sports brands is occupied by outdoor and leisure products, and the market share is shrinking. It is not enough for companies to adapt to these new changes by merely changing the order model. It is not enough to involve other category development. Whether it is the main brand or sub-brand operation, there must be a clear market strategic positioning, and then all products and management will be centered around this goal. , marketing to achieve the ultimate in all aspects, in order to achieve a true healthy operation.

“The apparel market, especially the sports brand, is still not optimistic.” Zhu Qingyu, a light industry researcher with China Investment Advisors Co., Ltd., said that under the backdrop of a weak economy, the marketing strategy of foreign sporting goods companies has submerged, which has increased the competitive pressure of domestic companies. In this situation, the domestic apparel industry should start as soon as possible to deal with the crisis, the depth of the industry adjustment and corporate transformation and upgrading is imperative.