Sports Brand Performance Differentiation Is Obviously Optimistic About "Retail Pformation" To Promote Performance

From Anta, Lining, XTEP, 361 degrees, PEAK disclosed the 2014 semi annual report, the Chinese sporting goods industry began to show signs of recovery after three years of channel arrangement, inventory sales and brand restructuring, but the differentiation of the major brands was obvious.

Many companies mentioned in the bulletin.

"Transformation" is an important business idea, and we need to strengthen stock management, diversify and diversify products to stimulate recovery.

But we still see remarkable achievements in the earnings report.

What are the differences? What are the management problems?

We see Anta, 361 and PEAK's performance double profits, Anta's operating income of 4 billion 120 million yuan, an increase of 22.4% over the same period, attributable to shareholders of listed companies net profit of 803 million yuan, an increase of 28.3% over the previous year, is close to the highest level in history.

The performance of Lining and XTEP increased, but the profit performance was not satisfactory.

Lining China Daily reported that as of June 30th, the company realized 3 billion 137 million yuan in revenue.

It increased by 8% compared to the same period last year, and the deficit expanded from 184 million yuan in the same period last year to 586 million yuan.

XTEP's revenue grew 1.8% to 2 billion 135 million yuan, but its profit dropped 16.6% to 284 million yuan.

If performance and profit represent the past of the brand, average inventory, average trade receivables, average trade payable days, cash flow and R & D investment are the key data to measure whether the sporting goods brand is healthy or not. They represent the inventory and financial health of the enterprise, and these data can partly predict the future of the enterprise.

For example, average inventory turnover days are important data for determining whether a company's stock is healthy. Average trade receivable turnover days, average trade turnover days and cash are the guarantee for financial health of sports goods companies.

However, from the data representation of the following table, we can see the sub health state of some enterprises behind the overall performance of the industry.

Taking average turnover days as an example, Anta and 361 degrees are the best 59 days.

The worst performance was Lining, up to 106 days.

XTEP and PEAK are 94 and 87 days respectively.

In terms of cash stock, Anta ranked first on the 4 billion 400 million cash stock. XTEP, PEAK and 361 degrees were 3 billion, 2 billion and 1 billion 760 million respectively. The cash stock of Li Ning Co decreased by 29% compared with the same period last year, with only 900 million yuan.

Look at strategy "retail pformation" to promote performance

Many companies mentioned the important business ideas of "retail pformation" in the announcement, and adopted measures such as strengthening inventory management, implementing diversified and differentiated products, so as to stimulate recovery.

But the same pformation has produced different results.

Among them, Anta's retail strategy pformation has achieved remarkable results. Anta's chairman and CEO Ding Shizhong revealed that Anta's Treasury sales ratio is 4, which is better than the industry's recognized 4.5 times.

Anta sports performance in the first half of this year has been second only to its best record of net profit of 927 million yuan in the first half of 2011.

How did Anta do it? Anta shared the following experience:

First, improve the profitability of retailers.

Through a comprehensive retail strategy pformation, the company actively helps dealers to maintain their competitive edge.

In addition to implementing flat organization, monitoring retail sales and improving store management, we also analyze market data by analyzing ERP data, and provide more precise guidelines for dealers.

In addition, Anta has further strengthened the flexible supply chain management, with the demand of the front-end market to make up the bill quickly and raise the overall high business efficiency.

Second, the strategy of opening the Great Olympics will become the brand representing China's sports.

Anta and the Chinese Olympic Committee have reached a strategic partnership of up to 8 years.

In addition, Anta has also signed the winter sports center, the water sports center, the boxing and Taekwondo center, the Gymnastic Center, as well as the recently announced lift and fall soft sports center.

Relying on the identity of the Chinese Olympic Committee's partners and the resources of the 22 gold medal national teams, Anta has become the spokesman of Chinese sports.

Anta associates Chinese sports with Anta brand, so that when consumers think of Chinese sports, they naturally associate Anta with Anta.

This has greatly enhanced Anta's brand influence.

Third, research innovation should create differentiated products.

By increasing investment in scientific research, we will break the deadlock of product homogenization and enhance the competitiveness of commodities.

Anta's sports science laboratory is the only state-level enterprise technology center in the domestic sporting goods industry. In the first half of this year, Anta's investment in scientific research was 4.2% of the sales cost, which was close to 95 million yuan.