How Does The Local Outdoor Brand Get Rid Of The Predicament And Complete The Self Salvation?

After experiencing the golden development period from 2009 to 2013, the growth rate of China's outdoor products market has slowed down year by year.

In the first half of 2018, the performance of local outdoor brand market encounters Waterloo. How to get rid of the predicament and realize self salvation is the first task before domestic outdoor enterprises.

China's local outdoor brands met with a cold spell in 2018.

Pathfinder holding group Limited by Share Ltd 2018 semi annual report shows that the whole line of revenue has collapsed.

Sanfo, the famous outdoor brand, is also having a hard time outdoors.

In 2017, the company's net profit was negative for the first time, the net profit attributable to shareholders of listed companies was -1290.87 yuan, down 136.49% compared to the same period last year. Net profit was -1648.47 million yuan, down 149.14% compared to the same period last year.

To boost market confidence, Sanfo outdoor executives have been holding their own stocks for more than ten times, but they have not played a role.

From January 1, 2018 to May 11th, Sanfo outdoor shares fell 21.23%.

Zhejiang semi aquatic products Co., Ltd. semi annual report is also not optimistic.

Semi annual report shows that during the reporting period, net profit attributable to shareholders of listed companies was 38 million 849 thousand and 100 yuan, down 14.10% from the same period last year.

Diversified businesses are dragging down and returning to the main business.

Pathfinder has the name "outdoor stock first share".

2018 half year report shows that as of June 31, 2018, operating income of 877 million yuan, down 31.38% compared to the same period, net profit 24 million 120 thousand yuan, down 69.47% compared to the same period.

The Pathfinder reduced net profit by nearly 70%, attributable to the fact that "the board of directors completed the change 10 months ago, and the current management based on the concept of sustainable development adjusted the previously aggressive sales plan, which has slowed down over the same period last year."

The decline in operating revenue is attributable to a sharp reduction in international air ticket services in travel services.

According to the report, the outdoor business as the main business of the company has achieved 497 million yuan in business revenue, basically reached the goal of establishing the business plan at the beginning of the year. Meanwhile, the company strengthened the control of the retail price system during the period, which effectively promoted the improvement of the retail terminal price and the comprehensive gross margin.

Pathfinder said in the announcement that the main business basically reached the established business plan target at the beginning of the year, but compared with the same period last year's revenue of 543 million yuan, the income of the explorer outdoor products shrank by nearly 10% in the first half of this year.

To add insult to injury, the sidelines of Pathfinder are even more bleak.

Travel business revenue of 379 million yuan, gross margin of 3.72%, down 47.97% compared with the same period last year; sports service business revenue of 758 thousand and 400 yuan, gross margin of -269.42%, down 42.85% compared with the same period last year, resulting in continuous decline in the performance of Pathfinder.

Three years ago, the Pathfinder suffered a sharp decline in its first profit since listing in 2009 and began to try to diversify.

In March 2015, the Pathfinder spent 230 million 700 thousand yuan on strategic investment to make the world easy to travel. The aim was to bring the tourism sector into the listed company, with a 74.56% stake.

In the same year, Pathfinder announced joint investment with Jiangxi and the same investment management company to set up a pathfinder sports industry M & A fund, and began to lay out the sports industry.

In January 23, 2016, the trial operation joint venture set up the first ski resort in the north slope of Songshan, Henan. After 4 days, the Pathfinder signed the "limited partnership agreement between Yingtan Pathfinder and sports industry investment center" to achieve the first capital raising of 110 million yuan, and completed the investment in key projects such as Lok world, Fittime, Ogilvy health and ice world.

Contrary to expectations, the huge investment tourism and sports sector did not bring timely returns to the Pathfinder, but rather drag down performance.

Pathfinder 2015 annual report shows that Pathfinder business income of 3 billion 808 million yuan, net profit attributable to the first decline after listing, down 263 million 400 thousand yuan compared to the same period, the ease of the world business situation worsened, resulting in a total loss of 23 million yuan net loss for the Pathfinder.

In 2016, Pathfinder revenue and net profit both declined.

Among them, the Pathfinder's operating income dropped 2 billion 878 million yuan over the same period, and net profit attributable to a decrease of 165 million 600 thousand yuan over the same period.

In 2017, the net profit of Pathfinder fell for the first time at 84 million 850 thousand yuan.

In November 2017, after the change of management, Wang Jing, one of the real controlling shareholders, took the post of chairman of the company. After taking office, Wang Jing adjusted the previous radical pluralism "keynote" and returned to the main business of outdoor products.

However, deciding is easy to turn around.

In the first half of 2018, the stores of the Pathfinder decreased by 86 compared with the end of 2017.

In the past 2015-2017 years, the Pathfinder has laid off 2144 people, 2064 people and 1791 people, of which more than 30% have been laid off by research and development departments.

In July 25, 2018, Pathfinder founder Sheng Fa Qiang announced that the main business of the Pathfinder has declined slightly in the past six months, and the future Pathfinder will adjust the pace of strategic development and focus on the outdoor products industry to relocate brand differentiation and new retail sales.

Return to the main business is helpless.

However, the tourism business that has been operating for three years has reached the scale of more than ten billion yuan, and the competition of outdoor brands at home and abroad is becoming increasingly fierce. Returning to the main industry will face greater investment in capital, products and supply chain.

For the Pathfinder, whether the business slump leads to management change or management change leads to business slump is really worth exploring.

However, one thing is worth affirming.

Under the guidance of policy, Pathfinder has unreasonable expectations for the development of the industry, underestimated the investment risk and overestimated the investment income, which, to a certain extent, also announced the failure of pathfinder for 3 years of exploration and pformation.

In fact, apart from Pathfinder, Sanfo outdoor is also trapped in "diversification" business.

In early 2018, there were major changes in the outdoor board of Sanfo, which was founded in 1997 and listed in 2015.

4 executives launched a no less than 20 million yuan overweight plan.

At the beginning of the August, 4 people increased their holdings by 20 million 70 thousand yuan, but one of the executives completed only half of their commitments, which led to the receipt of the letter from the Shenzhen Stock Exchange.

Just a few months before the launch of the increase plan, Sanfo's other outdoor executives completed the reduction of 2 million 487 thousand shares, totaling more than 101 million yuan, which is 5 times the total holdings.

In 2017,

The first loss in sales has been reported for two years.

Despite the turnaround in performance in the first quarter of 2018, operating cash flow is still -1949.71 million.

Only two years after listing, Sanfo outdoors suffered losses.

The company's annual report 2017 showed that the company achieved operating income of 351 million yuan during the reporting period, a decrease of 0.53% over the same period last year, and realized a total profit of -1338.53 million yuan, a decrease of 130.75% over the same period last year. Net profit attributable to shareholders of listed companies was -1290.87 million, a decrease of 136.49% over the same period last year.

Not only that, in recent years, Sanfo outdoor sales revenue has not increased, sales costs are still growing.

In the first quarter of this year, the sales cost of Sanfo outdoor was 23 million 733 thousand and 400, accounting for 15.5 times of net profit.

In the two tier market, the stock price of Sanfo once exceeded 80 yuan a year after the stock market went back to the stock market, and the peak price in 2017 was around 47 yuan.

In 2018, Sanfo's outdoor share price was depressed as its performance fell short of expectations.

As of September 15th closing, Sanfo outdoor newspaper 12.85 yuan / share, in the past month the highest decline of 86.23%.

In the face of losses, Sanfo outdoor said, on the one hand, the main business revenue of the company was affected by the overall economic downturn, resulting in weak growth; on the other hand, the cost of all aspects increased, resulting in current performance losses, including the cost increase of large event organization and outdoor camp project investment, as well as the increase in the amount of manpower cost and inventory depreciation provision.

Looking at the Sanfo outdoor annual report, it found that the sales revenue of its offline stores almost showed a downward trend. In the 5 major regions of the country, sales of 4 regional stores decreased year by year, but only in the northeast region, while in the 4 down areas, 3 regions showed a decline of 10%.

Sanfo outdoor 2015 IPO investment projects, activities, camp + training, retail + experience integrated operation center construction projects and headquarters office and R & D center construction projects are planned to invest 191 million yuan, 63 million 169 thousand and 200 yuan respectively, but by the end of last year, the former has still not been substantial, the latter has invested 2 million 223 thousand and 800 yuan.

In addition, it has invested 18 million 432 thousand and 800 yuan in the marketing network construction project, the investment progress is 36.98%, but the benefit of the report period is -339.83 million yuan.

Like the Pathfinder, a lot of new business has taken up the energy of Sanfo outdoor.

In September 2016, Sanfo launched an outdoor public offering plan, and the proposed increase was not more than 600 million yuan.

Among them, 398 million yuan will be used for Sanfo outdoor sports events, camp + training, retail + experience integrated operation center construction project; 202 million yuan will be used for Sanfo headquarters office and R & D center construction project.

In March 2017, Sanfo outdoor also announced that it would invest 400 million yuan to build 7 camps. The construction period is expected to be 3 years, with investment of 141 million yuan, 186 million yuan and 91 million 403 thousand yuan per year respectively.

According to the plan, the average annual operating income of the project is 414 million yuan, the annual net profit is 66 million 709 thousand and 400 yuan, the internal rate of return after tax is 13.78%, and the after tax investment recovery period (including construction period) is 7.47 years.

In May of 2017, Sanfo signed a 116 million yuan real estate sales contract. In September, it spent 22 million yuan to increase the capital high-end fitness club, Shenzhen goodfried Cci Capital Ltd.

However, diversified business has not brought considerable expectations to Sanfo outdoor.

In 2017, Beijing Sanfo Outdoor Sports Management Co., Ltd. lost 1 million 260 thousand yuan in the Sanfo subsidiary, and Beijing Sanfo outdoor sports training Co., Ltd. lost a net loss of 3 million 350 thousand yuan.

According to information, in the past 2012-2017 years, the outflow of Sanfo outbound cash from external investment totaled about 164 million yuan, while the accumulated profit was only 141 million yuan.

For a channel brand without a main business brand, Sanfo outdoor, which has been listed for more than 2 years, has not taken the brand focus. When facing the pressure of investors and diversifying its development path, losses are inevitable.

In addition, the brand price is relatively expensive, and the users involved are narrower.

The encounter between Pathfinder and Sanfo outdoor is the epitome of the domestic outdoor brand market.

These brands are almost facing a common problem, such as narrow input in main business, lack of depth in product category, lack of technological drive and innovation, blind diversification and waste of limited resources, coupled with unclear positioning, resulting in a dilemma of brands, and no obvious advantages in high-end market and mass market.

After experiencing the golden period of development, the growth rate of China's outdoor products market has gradually slowed down. In 2016, the industry growth rate was less than 10%, and officially entered the depth adjustment period.

China's outdoor products 2017 annual market survey report released by COCA pointed out that in 2017, the total sales of outdoor products in China amounted to 24 billion 460 million yuan, and the annual growth rate of retail and wholesale markets was the lowest since 2002.

The main reason for the slowdown of outdoor products market is the compression of outdoor area and the closing of small and medium outdoor stores.

At the same time, blind diversification leads to no significant investment in outdoor brand business, which indirectly affects brand focus.

2010-2013 years,

Usher in a blowout growth, however, the brand's good and bad, giving brand owners a wrong judgement, they define the outdoor brand vague.

The "outdoor" card has lost the function of labeling, and the rest is homogenization.

How to enhance the value of outdoor sports brand can not be reflected only by a few pieces of equipment.

In 2017, publicly available data showed that the number of outdoor sports brands decreased compared with that in 2016, and the number of domestic brands dropped by more than that of international brands. Among them, domestic brands decreased by 37 and international brands decreased by 13.

Foreign famous outdoor brands such as Oryx and wolf claw have entered the field in the past few years.

These international brands, with their development history and industry experience for decades or even hundreds of years, quickly occupied a higher market share in the country, especially in the three categories of outdoor products, such as clothing, footwear and equipment, which are closely related to the path of European and American outdoor brands.

Outdoor is a relatively extensive market. On the road of differentiation, domestic outdoor brands should learn from Europe and America.

In the west, outdoor sports not only focus on niche activities in the professional field, but also have dual characteristics of sports and tourism and recreation, involving more and more fields and participating groups, including mountaineering, low altitude flight, rock climbing, cliff rapid fall, mountain biking, camping, outdoor survival, skiing, rafting and other sports and leisure activities.

According to its characteristics, it can be divided into professional outdoor sports and public light outdoor sports.

With the wide increase of outdoor sports and participants' demand for subdivision, the technical performance of professional products and the durability of leisure outdoor products are more obvious.

In China, whether it's a leader or a leader,

And even other outdoor brands, enterprises need to understand what they want, take professional class equipment, or take the civilian route.

In the field of segmentation, there are still many blanks in the domestic outdoor market, including mountaineering, skiing, low altitude flight and so on, while domestic brands can not be satisfied with the market and there is no national brand that can really lead the industry.

Domestic brand enterprises can imitate foreign countries, choose between professional and public segments, or subdivide in a single category, hatch their own brands, and tap the depth of products.

The outdoors is fastidious is the application scene, the user wears the custom is one kind of research and development custom, the market cultivation cycle is very long.

But the domestic outdoor products market has only developed for more than ten years, and the strategic vision of the enterprises is not mature enough.

Take Sanfo outdoor as an example, the brand of its agents is mostly professional level.

There is no significant professional crowd base.

However, in the long run, the professional population will increase year by year, and the market will also be favorable.