Looking At Sports Brand Performance And Changing Trend Of Sports Footwear Market

In the morning of August 11th, the Li Ning Co released interim results for the six months ended June 30, 2016. In the first half of this year, Lining's operating income was 3 billion 596 million yuan, up 13% from the same period last year, operating profit of 153 million yuan, up 167% from the same period last year, and net profit of 113 million yuan, compared with a loss of 29 million yuan in the same period last year.

The semi annual report listed several bright business indicators: the same store sales in the first half of 2016, the number of units recorded increased; the cash flow doubled to 346 million yuan; the overall channel sales flow, including online and offline, recorded a low double-digit growth; the new product sales rate continued to rise, an increase of 2 percentage points; the gross margin increased by 1.5 to 46.7%, and the operating profit margin increased from 1.8% in the same period last year to 4.2%.

This shows that Li Ning Co's performance has been strong recovery.

In August 4th, Adidas disclosed its two quarter results, excluding exchange rate factors, and Adidas's sales increased 21% in the two quarter of 2016. According to the euro, the group's revenue grew 13% to 4 billion 422 million euros.

Among them, Western Europe grew by 29% and North America by 26%.

The growth rate in the Greater China region was the fastest, with an increase of 30% in the two quarter and a 30.2% increase in the first half of the year.

Last year, sales in Adidas Greater China grew 18% year-on-year, 2 billion 469 million euros, operating profit skyrocketed and 40.4% recorded 866 million euros.

Thus, Adidas's growth momentum in the Greater China region is accelerating.

As the two quarter exceeded expectations, Adidas group raised its 2016 annual guidance target.

Excluding the exchange rate, Adidas group's sales in 2016 are expected to grow by 16%-19%, which is estimated to be around 15%, and the operating interest rate is expected to increase from 7% to 7.5%.

Adidas group said the performance owes to the two digit growth of sports performance series and sports fashion series.

Adidas is now introducing and promoting innovative store models and accelerating the expansion of retail outlets.

I believe you are very impressed with the Logo of Anta, Lining, and 360 degree sports clothing brands.

Under the "surface scenery", what about these brands "Li Zi"? In fact, they are indeed "inside the table", and the overall business situation keeps growing.

In July 27th, Anta announced the order performance in the first quarter of 2017 and the retail performance in the second quarter of 2016. The annual sales volume of the 2017 orders of Anta brand products increased year by year. In the second quarter of 2016, the retail sales of Anta brand products increased by a higher number of units compared with the same period in 2015, while the sales volume of Anta products increased in the first quarter compared with the same period.

In August 2nd, 31st degree also announced the results of spring order meeting in 2017.

The announcement shows that the order value of the 361 core brand in the first quarter of 2017 increased again to the high number of units.

The growth of the order value represents an improvement in the tenth quarter from the last quarter of 2014.

Sports brands are strengthening the competitiveness of core categories.

Looking at these sports brands with strong performance, one feeling is that they are strengthening core brand competitiveness, core competitiveness and core competitiveness. In short, they are adopting a strategy of "focusing" to some extent.

Lining's half year performance report shows that the group's core brand Lining's income accounts for 98.8% yuan of total revenue, reaching 3 billion 553 million yuan, up 13.6% from the same period last year.

This proportion means that Lining is a single brand in some sense.

According to the report, the 5 major categories of companies have been recognized by the market, especially in running, basketball and fitness training products.

This means that Lining has increased resources in running, basketball, fitness training, sports life and badminton. Lining's practice is to try to create core, differentiated and competitive products or brands in every category, so as to meet the market demand of different location. Five.

Lining said that the plan is close to the local consumer demand through the way of "specialized channels + exclusive features", so as to enhance the retail operation capacity.

Adidas's play is even more advanced.

As mentioned earlier, Adidas attributed its strong performance in the two quarter to the two digit growth of the sports performance series and sports fashion series.

Specifically, it benefits from the two digit sales growth of running, football and training series, and the promotion of Adidas sports classic series and NEO series.

According to reports, French department store executives said that Adidas's performance exceeded their expectations, consumers were very keen on Adidas's Stan Smith shoes, and sales of Stan Smith accounted for 60% of the total sales of Adidas brand of department stores.

In addition, Adidas Superstar, Adidas and Stella McCartney cooperation and NMD shoes were also very successful.

Sales growth in Greater China is also largely due to sales of shoes Stan Smith and NMD.

Adidas is making itself cooler and more fashionable, and plans to create more star burst products like Stan Smith.

31st degree also announced in its 2017 order results announcement that the growth of the order industry came mainly from the growth of shoe parts, with a marked increase in the order volume and a slight increase in the average selling price.

In spring 2017, the order contribution of footwear, clothing and accessories accounted for 50.4%, 48% and 1.6% respectively.

The company said it would continue to focus on shoe sales and enhance its sales contribution in the future.

It seems that the next 31st degree will spend more time on making shoes.

What we need to realize is that there is still a big gap between the domestic sports brand and the international first-line brand in the "product strength".

When we can make several popular and classic products in the world, or win a good reputation in sports segmentation market, become the products or brands of sports and athletes, we can say that the core competitiveness of domestic sports brands can be truly competitive.

From this perspective, the road of domestic brands to create core categories has just started. This also means that there are still great opportunities for development of sports apparel market.

{page_break}

More localization in channel reform

If we are to match the international brand in building product strength, we need to carefully examine the hot land at the foot of the channel to better meet the needs of China's consumer market.

First of all, the construction of the channel of e-commerce and O2O, all of which are "Chinese characteristics".

Lining mentioned in his semi annual report that the sales volume of Lining's e-commerce business has maintained a high growth, and sales in the first half of the year have increased more than doubled.

The company said 2016 is the key breakthrough stage of Lining's all channel business, and the whole channel business has started trial operation in the first half year.

The business of electronic commerce is no longer an online sales and marketing channel, but rather an exploration and practice of digital operation.

From this perspective, Lining hopes to have greater breakthroughs in the channel of e-commerce.

Lining said that the future plan is to optimize the online and offline shopping experience by improving the online and offline shopping experience by using the mobile end network platform to close to the target consumer group, and enhance the multi-channel and cross platform user experience.

It can be expected that the business of e-commerce, especially the business of mobile e-commerce, will become another key business of the development of sports shoes and clothing brand. This trend of change may be faster than imagined.

The other is the sink of the channel, which is close to the needs of the masses.

This should be the "brand leader" of the domestic brand, and it is also a strategy that Adidas has insisted on growing momentum over Nike.

In the past 5 years, it has been doing this for the next 5 years, and it wants to do so.

In Adidas's plan, the company will plan to open 3000 additional stores by 2020.

To this end, he was on the side of "local tyrant" Wanda.

At the end of June, Adidas announced its cooperation with Wanda Group, which will sponsor the latter's triathlon, which will provide a wider store support for the former.

At the same time, the two sides will carry out resource cooperation in the field of youth football.

The international first-line brand with strong product strength began to go deeper into the hinterland of the domestic sports brand and launched a positive confrontation.

Domestic sports brands should pay more attention to the needs of local consumers and improve their retail capabilities in the process of channel pformation and pformation.

It is worth mentioning that in August 11th, Alibaba group announced its first quarter results in fiscal year 2017, an increase of 59% over the same period last year. It has gained the strongest growth since the listing, and has achieved double sales and user numbers, and a major change is that the liquidity rate of mobile terminals is higher than that of non mobile terminals for the first time.

The performance of Alibaba is known as "barometer of China's economy" by foreign media. To some extent, this shows that even if China's economy slows down, China's strong consumer market is still in. The key is to cater to the trend of pformation and pformation in the market, do well in the optimization of its main products and services, better meet the needs of the consumer market, and have the opportunity to maintain growth in the adverse market. This is true for Lining, Anta and other sports shoes and clothing brands, as well as for the clothing brands of all garment market segments.