Market Changes PEAK Optimizes Channels To Prepare For Warmer Periods

Compared with the recent temperature drop in China, the cold market of China's sporting goods market has lasted for more than a year.

No matter international or domestic sports brand, almost feel the trouble of declining performance and rising inventory.

The recession of the economic environment has caused the overall decline of the industry. This background requires that sports brand must adapt to the market changes and make timely adjustments.

"As a matter of fact, as early as last year, we began to respond to changes in the market, through optimizing channels, enhancing the efficiency and increasing of single stores.

R & D input and other measures will enhance the response speed and flexibility of the terminal to cope with the industry fatigue period in the next two to three years and strive for the first recovery.

Xu Zhihua, chief executive of PEAK, said in an interview that the adjustment of the industry has accelerated the pformation. After the survival of the fittest, there will be more room for the development of powerful enterprises, and only positive responses will bring about an early recovery.

PEAK seventh generation store renderings 1

Optimize PEAK store renewal

Adjustment and pformation become the core vocabularies of the industry.

The first action is to optimize channels.

"The closure of stores is very sensitive to the media.

But from the perspective of industry, closing of stores is essentially a process of survival of the fittest. "

Xu Zhihua said PEAK, which has been insisting on brand internationalization, has been in the international market in recent years.

As a result, the proportion of overseas market income in total income is increasing year by year. The current storefront, whether it is the shop area or the image of the door, can not meet the requirements of PEAK internationalization. Therefore, some stores naturally get rid of this upgrading process.

According to the current situation of the industry, Lining, Puma and other enterprises have used the "downsizing" action to reduce the number of stores to comply with the market.

Zhu Qinghua, a light industry researcher at CIC, said such a reform is actually a sensible move to comply with the market.

Now many brand terminal stores display products lack of a series of styles, that is, from the early positioning is not clear, the era of horse racing enclosure, did not take into account the current problems.

Moreover, many stores do not update their images for several months, showing discounted information and lack of freshness, causing consumers to see the same play's visual exhaustion.

It is reported that PEAK is upgrading its store image.

The newly designed "seventh generation stores" have been piloted in some areas. It is estimated that by the end of 2013, nearly 1000 stores will be upgraded.

PEAK's seventh generation stores adopt a more internationalized design, requiring the store area to reach more than 100 square meters, and insist on the positioning of the core of the basketball in the commodity display, showing the specialization and serialization of the products, the overall effect is more visual impact, and can bring consumers a better shopping experience.

PEAK seventh generation store renderings 2

Upgrading single store efficiency and leading industry recovery

As some industry experts have said, the past era of sales growth based on opening stores has passed. Competition for future single store efficiency is inevitable.

Only by upgrading the value of the brand, the image of the store and the quality of the product can we meet the requirements of future competition.

"Integrating shop resources and closing stores is not the ultimate goal. Upgrading the profitability of high quality single stores is the foothold."

PEAK CEO Xu Zhihua said that structural adjustment and channel optimization are also responsible for distributors, reducing pressure, and dealers will have more energy to invest in profitable potential stores.

"We have been working with distributors to ensure that dealers do not buy goods, and help them solve their financial problems, and guide distributors to pform stores. When the industry is depressed, PEAK will work with distributors to tide over difficulties."

In order to achieve this goal, PEAK began to reduce the burden on dealers last autumn, and adopted a "zero inventory" order management strategy to encourage distributors to set up direct stores. At the beginning of this year, a terminal operation management center was set up to guide terminals to make scientific, standardized and timely marketing response according to market changes.

It is reported that the center integrates the resources of PEAK business school and space management department, and shifts the focus of training to the upgrading of terminal operation level. It carries out scientific and targeted training aiming at the store norms, image unification, scientific management and special operation of terminal outlets, so as to enhance the marketing ability of distributors.

Ye Shuangquan, director of PEAK terminal operations management center, said: "our goal is to carry out seamless docking from brand headquarters to retail terminals through better and meticulous management, and push the latest brand concepts and products with the latest technology to the consumers in the shortest possible time."

PEAK seventh generation store renderings 3

Although some analysts believe that the sports industry will remain weak for some time to come, "the sports industry will rebound in 2013" is too optimistic.

However, the opinions of the relevant heads of the sporting goods companies are quite consistent. It is believed that with the gradual emergence of the restructuring of the national leading bodies and favorable policies, the industry is expected to pick up in the second half of 2013.

"We are optimistic about the long-term development of the sporting goods industry."

PEAK CEO Xu Zhihua said, "through the continuous improvement of brand, distribution channel optimization and increased investment in R & D new products, PEAK is confident that it will become one of the first to recover from the current integration of sporting goods industry."