Domestic Sportswear Enterprises Are Unable To Solve The Inventory Problem.

Due to the obvious seasonal nature

In the first half of this year, Lining's inventory reached 992 million yuan, an increase of 186 million yuan compared with the beginning of the year.

It also announced that it would spend about 300 million yuan on the sale of "unsold products" to distributors. It is expected that the group will need to repurchase about 1 billion 448 million yuan of inventory in the next two years.

XTEP

In a semi annual report, XTEP pointed out that the first half of the year's footwear and apparel products were more than 2000 and 2700 design styles respectively.

In the continuous introduction of new models, how can XTEP complete nearly 500 million yuan inventory digestion?

In sporting goods enterprises, book inventory is only part of its actual inventory, and a large part of it has been sold wholesale to dealers but not sold.

In the case of XTEP's continuous development of new products, the inventories that have been granted to dealers are likely to be faced with the pressure of repurchase and depreciation, like Lining.

The dilemma of sporting goods stocks such as Lining and XTEP is not without historical reference.

In fact, Nike, ADI and other sporting goods "originator" also encountered high inventory trouble.

In 2008, as a sponsor of the Beijing Olympic Games, Adidas increased its scale of production due to its over optimistic market, and suffered from the global economic crisis after the Olympic Games.

It took Adidas more than two years to clean up the backlog of sales channels.

It can clean up huge inventory and play an important role in brand appeal.

Chinese sporting goods companies used to expand their channels too fast. In recent years, franchisees have largely digested their stock, rather than expanding orders, and intensified competition with foreign sporting goods providers, causing the biggest adverse prospect.