Key way sports Consulting Co. founder Zhang told reporters that the closure of Li Ning, Hong Kong Branch, a reflection of the bottleneck of the entire sporting goods industry. On one hand, the high-margin, high-growth era is gone; the other hand, a lot of opening new stores to increase sales growth mode has been difficult to sustain, operator terminal retail nike free run 3 stores of various fees increasingly higher. In addition, from fast fashion (such as ZARA, Uniqlo library), the impact of the rapid development of outdoor sports brand, e-commerce, sports brand in the terminal retail market has been severely squeezed. In this case, the sporting goods company inevitably faces the dual pressures to reduce sales increased and inventory.
Face the overseas market, Li Ning Company expansion fails, reduce profits, sales decline, "internal and external" circumstances, Zhang, Li Ning, the company shut down the Hong Kong branch is a rational choice. "Zhang said, although Li Ning Company international market share of the overall market share of only about 3%, but the funds invested by the company in the overseas markets, personnel costs are very high. Under the dual pressures if they increase the cost of the overseas market, Li Ning, the company is undoubtedly the "worse."
"However, the pace of development of the sporting goods industry in the Chinese market slowdown, but there is still huge room for growth." Zhang told reporters that China's per capita consumption of sporting goods is less than 1/10 developed countries in Europe and America. At present, not only is the Li Ning Company, other sporting goods companies to re-focus on the brand itself, the movement of the spirit and the domestic market is the move of the current key. Zhang believes that the sporting goods is not just for people in the course of the campaign to provide equipment, technical support , and now even more important to be the trend of product design. Either local sporting goods product design Chinese elements with Western fashion elements nike free run 2 men, integration, cross-border cooperation with other brands. In addition to the high inventory, on June 12, according to the announcement from the Li Ning Company, Li Ning products dealer orders at the company's fourth quarter, Li Ning apparel orders amount and volume of orders both fell, and fell all over 20%. Li Ning, the company expects full-year loss of 226 million yuan. Li Ning, the company's performance under the dual pressure of the high pressure on the stock and the company reduced orders again a serious decline in net profit greatly reduced. Li Ning Company 2012 semi-annual report shows that the company in the first half revenue of 3.88 billion yuan, a year-on-year decrease of 9.5%. Attributable to shareholders of listed companies net profit of 0.44 billion yuan, a year-on-year decrease of 84.9%.
In addition, in order to control the cost and efficiency of the new shop, the Li Ning company has shut down part of the results of operations is not good, the low profitability shops. According to statistics, as of the end of June this year, the company's total of 7,303 stores, the first half of the year has turned off the 952.
Local sporting goods company in addition to the need to focus on brand differentiation marketing, brand promotion process should "return to the essence of the sport." "Behind the brand nike free run 2, pass the philosophy and ideas of how to be able to stimulate demand for consumer movement, it is worth thinking of a sporting goods company", Zhang said.