Chinese Sports Brand Can Not Afford To Sell A Single Store.

Many sporting goods companies in China regard it as a promotion.

The global retail industry has gone through more than 100 years of development, from entity terminal to virtual sales.

The change of retail format has also prompted a batch of enterprises that are closely following the trend of the times. Today, the sports products sales mode of our country is single, the market competition is fierce, and the future development trend is to be understood. Combined with the company's own conditions, choosing a reasonable combination of formats is a problem for every sports brand that wants to be bigger and stronger.

As BELLE CEO Sheng Bai Jiao said, "no matter in Europe, the United States and Japan, sales channels are diversified, but China now has only one brand store, and I believe it is time to increase the new mode."

The traditional sales mode of sporting goods is facing challenges.

For sports brand chain stores, usually the independent brand, the product is mainly clothing and shoes, self run and franchise are the main business and expansion mode. At present, this form is one of the most important sales methods in the domestic sporting goods retail market.

Lining, Nike and Adidas are the main representatives of this format.

Data show that, with a mall in a domestic city as the representative, about 38% of the shopkeepers are in balance, 22% of sporting goods stores have a slight surplus, and 37% are facing bankruptcy risks.

Now the market is different from the previous market, the market is saturated, the market competition is intensified, and the sports shops are hard to manage.

First of all, the rent of shops is very high and has been increasing year by year.

According to CCTV, people's daily and other media reports, Beijing, Shanghai, Guangzhou, Shenzhen and other first tier cities rent has soared in the short term, especially since June and July, the rent increase is more obvious.

The rent of many cities has increased by more than 20%, especially the rent of exclusive stores has increased by 10% - 30%, and some consumer brand profits have been squeezed out as thin paper as the rent of franchised stores.

Many consumer brands have entered the strange circle of "do not open shop, wait for death, open shop to seek death".

This leads to the conclusion that rental costs are increasing.

Second, inventory pressure is high.

Take Adidas as an example. In the first 6 months of 2009, Adidas accumulated sales revenue of 5 billion 34 million euros, while the third quarter of 2009 was worth 1 billion 652 million euros.

Inventories are close to the annual sales of some well-known enterprises in Fujian.

In the first half of this year, Adidas's performance in the Chinese market was still sluggish, and sales revenue fell by 16% compared to the same period last year, dragging down global performance.

Adidas also said that the main reason was the need to deal with inventory.

It can be seen that the impact of inventory on sports enterprises is huge.

Cooperation with distributors is one of the most important ways for traditional sporting goods enterprises to carry out their business. Taking Tao Bo sports as an example, it is one of the largest distributors of Adidas and Nike in China. Its strong terminal capability is beyond the expectation of domestic sporting goods enterprises.

Acting KAPPA started Beijing sports sports, 07 years Hongkong listing, opening market value is close to 30 billion, more than the previously listed Anta and Lining.

All these are amazing to the manufacturers of sports products.

While businesses are scrambled for sites to set up exclusive stores, the growing regional agents are also integrating their own channels to form chain retailers.