London Olympic Games Have Little Help In Sports Brand Performance.

Contrary to sales, inventory growth.

By the end of 5 in 2012, Nike's inventory reached US $3 billion 350 million, compared with 2 billion 715 million US dollars in the same period last year, an increase of 23.39%.

Ma Gang, an industry expert, analyzed the reasons for the high inventory from three aspects: ordering, sales estimation and market promotion.

At the same time, Ma Gang analyzed that there are two hazards in high inventory, the first is occupation of funds, followed by pressure on retailers.

Ma Gang: in fact, there are several bad things in high inventory. First of all, you will occupy your liquidity, that is, slowing down the turnover of your goods. This may eliminate the enthusiasm of retailers or franchisees in the operation of these retail channels, or some stocks will fail because of overstocking.

Nike is facing high inventory pressure, while other sports brands are not much better.

In the first half of 2012, Anta's performance report just showed that Anta's turnover reached 3 billion 930 million yuan in the first half of this year, a decrease of 11.6% compared with last year, and net profit of 769 million yuan, a 17% decrease over the same period last year.

As for the reasons for the sharp decline in profits, Anta believes that this is due to the high inventory and the large discount of products, so profits have been seriously affected.

PEAK made 778 million yuan last year, down 5.4% from last year, far below market expectations.

PEAK CEO Xu Zhihua has said that the company has 6 months or so of inventory waiting to digest, and this year will still be a year to clean up inventory.

Judging from the amount of inventory, a few major sports brands are facing great pressure, Anta stock 618 million yuan, XTEP inventory 671 million yuan, 451 million yuan in the 31st degree, PEAK inventory 421 million yuan.

Compared to these brands, Lining is even worse.

The annual report shows that Li Ning Co's inventory reached 1 billion 130 million yuan last year, almost two times that of 2008.

Inventory has become a curse on the sporting goods industry.

Ma Gang, a clothing industry expert, said that the problem of inventory has become a problem in the entire garment industry.

Ma Gang: in fact, it is not just sportswear, including men's wear, women's wear and casual wear.

The leisure brands of the seven wolves, Semir and Metersbonwe are also quite large. In fact, there are several reasons for the extension. The garment industry of China has experienced a relatively rapid growth. It will enter a period of adjustment. This is a weekly adjustment period, which is not consistent with objective laws.

Ma Gang believes that now the sports apparel industry has entered a period of adjustment.

Magang: you may have been walking along the river before, but you will encounter bottlenecks when you grow up to a certain stage.

On the one hand, there is a demand for brand products in the whole market. On the other hand, the rapid development of your channel has also made a great contribution to the total sales volume of your brand.

Because the sales of three thousand and two thousand are likely to increase exponentially, but now the clothes you ordered are basically seven to eight thousand. This channel has no way to grow. At this time, your growth will be stagnant. At this time, every brand may grow from a relatively extensive growth to a gradual growth. This is what we call a cyclical adjustment period.

The domestic sports brand once regarded the London Olympic Games as an excellent opportunity to expand sales and clean up inventory.

In the London Olympic Games, Anta is the highest level strategic partner of the Chinese Olympic Committee, and the market expects its sponsorship amount to be as high as 600 million yuan.

Li Ning Co also announced at the 2012 London Olympic equipment conference that it will provide equipment support for the 5 teams of Chinese gymnastic team, shooting team, diving team, table tennis team and badminton team.

However, according to industry analysis, Olympic sponsorship has almost no help in performance, because the mainland media's attention to London Olympic Games is obviously less than that of the Beijing Olympic Games, coupled with jet lag, consumers feel less about the Olympic Games, and the marketing effect is limited.