Local Sports Brands Are In Trouble. Lining Or Anta Will Continue To Be Weak.

The Li Ning Co Ltd announced that orders for the fourth quarter of this year will be completed and the orders will be recorded in a double-digit decline.

After the announcement, Lining's share price fell for two consecutive days, closing at 3.05% on the 13 day, closing at HK $5.09 per share, and 10.86% on the two day, the lowest since 2006.

Anta sports fell 3.33% after 12 days, rising 2.58% on the 13 day and closing at HK $5.96 per share.

Local sports commodities are in trouble.

Lining announced that the order for 2012 has been completed so far. The annual order for new products will be lower than that of last year. The number of orders for footwear products will be double digits.

In terms of clothing, the volume of orders was recorded over 20%, and the average retail price and order volume were recorded at low unit numbers and over 20% respectively.

On the second day of the announcement, Lining's share price fell 8.06% and its competitor Anta sports fell 3.33%.

In fact, not only is Lining, but also another local sports brand Anta sports plunged into the mire.

Anta sports announced in May 17th that the order volume of the fourth quarter of 2012 decreased by a double-digit percentage decline year by year, and the total annual orders increased by a high percentage per unit.

The company's share price also lingered in the trough of nearly three years.

PEAK sports and the two companies, the fourth quarter of 2012 orders, its footwear products and clothing products decreased by 20% to 30%, the average wholesale price of their shoes and clothing was flat last year.

PEAK expects that the number of stores will be reduced to 7000 by the end of this year, with a reduction of around 10%.

Last Monday, PEAK sports reported a record low price of 1.32 yuan per share, with a daily income of HK $1.43 per share on the 13 day.

Market changes are hard to break through

Lining said in a 11 day announcement that to cope with the challenges of the economic environment, the group will focus on the strategy of focusing on core business and improving operational efficiency.

In addition, the announcement also said that in June 11, 2012, the company signed a memorandum of cooperation to become the equipment sponsor of the Chinese men's Basketball League. The agreement covers five seasons from 2012/2013 to 2016/2017.

The announcement also pointed out that the CBA League has already had important commercial value and brand value. From the perspective of long-term development, this sponsorship is an important strategic choice for the group.

Lining is full of confidence in investing in CBA. Some consumers believe that sponsorship of CBA does not necessarily make CBA brand.

Yesterday, reporters at several sports brand stores in Shenzhen and several customers chatted about this matter. Customers think that investing in CBA is a waste. If we invest in NBA, European football and F1 racing, we hope to re start Lining's brand.

At the 2008 Beijing Olympic Games, Lining lit the main torch and ignited his brand.

Now, Lining and Anta, whose profits have fallen sharply, are actively looking for a way to revitalize the industry.

However, some people believe that sports brands like Nike, Adidas, Hongxing Erke, 31st degree and del Hui have already occupied a part of the market share. "It is hoped that the London Olympic Games will greatly stimulate the domestic sporting goods brand.

Before and after 2008, the popularity of the national sports movement, the market demand for sporting goods brands rapidly increased, but now the market has changed, leisure style has become a new trend.

Lining or Anta will continue to be weak

The net profit of Anta sports in the past 2008~2010 years was 896 million, 1 billion 251 million and 1 billion 551 million yuan respectively, and the net profit in 2011 was 1 billion 730 million yuan, an increase of 10% over the previous year.

Lining's net profit in the 2008~2010 years was 721 million, 945 million and 1 billion 108 million yuan respectively, and its profit grew steadily. In 2011, net profit dropped to 386 million yuan, down 65% from last year.

Guotai Junan (Hongkong) believes that Anta sports 2012

Annual orders will increase less than expected.

The company is expected to increase rebates to support dealers who are regressive in profitability, but the increased rebate will pressure the company's gross margins.

As a popular brand, it is reasonable for the company to expect gross margin to stay above 40%.

Anta's response to industry competition is slower than that of the industry. It is estimated that 2013

Order growth will continue to be weak in the one or two quarter of this year.

For Lining, Guotai Junan (Hongkong) believes that Lining's order value fell by nearly 20% in the fourth quarter of 2012, far below expectations.

In addition, the company sponsored the Chinese men's basketball professional league, the cost of up to 2 billion yuan, Lining expected brand promotion and promotion costs will rise sharply, given the company's current financial situation, sponsorship CBA is not worth the money, the company's profitability deteriorated again.