The impact of the online shop is only Li Ning crisis image industry is still waiting for next year

Li Ning and other sporting goods companies shut down frequently

On November 19th, Li Ning’s flagship store on Renhe Road in Qingdao was a must for many local “Li Ning Fans” to sweep cargo. However, recently, the flagship store quietly “goes to the sky”.

In the first half of this year, the Li Ning Group made a profit assessment of the store based on the newly opened 248 stores and closed down 1200 tiny stores. The ratio of this store was 15%. There is more than a Li Ning company, but there are also other well-known domestic sporting goods companies such as Peak and Anta.

The business operation report released by Peak on November 5 showed that as of September 30, 2012, the number of authorized retail outlets of the company in China was 6,739, a net decrease of 1,067 from the end of 2011. In addition, the total number of stores for Anta Sports has also been reduced by 110 this year.

“The entire apparel industry must really get out of its predicament and get it next year.” Chief Executive Officer Xu Zhihua of Peak Sporting Goods Co., Ltd. admitted to the media that the company’s elimination target set at the beginning of this year is still within expectation.

Dealers complain about online store hitting physical store sales Stores into fitting rooms

November 16 reported that Lao Song, one of the most end-of-line distributors of Li Ning's sales system, expressed his frustration with Li Ning's official online store which went live on September 19 this year.

"On the same day, the ticket printed by our shop's POS machine brought with it a 'Welcome to Li Ning's official store' banner. It also wrote a website address, which is too unbearable." Lao Song told reporters: "I have a look at the website, many new models can be played 50% off, and my take the goods can only hit 5.6-5.8 fold, in the store how to sell more than 20% off. Online shop to sell So cheap, how can we live?"

In another brand store, shopping guide told reporters that customers came to the store to try on clothes. After the middle phase, many customers went online to buy clothes. The shopping guide complained that the physical store became a fitting room for the shop.

According to a survey conducted by the reporter, compared with online stores, physical stores have to invest a lot of money in terms of labor, rent, etc. Therefore, the pressure for survival of physical stores will be greater this year.

The impact of the online shop is only the appearance of Li Ning crisis. In fact, any sensible business will not let its own online store hit the physical store, unless it is a helpless move. “The source of the crisis is still the overestimation of the market and the rapid spread of the pie.” A person close to Li Ning revealed to reporters.

The performance of sports brand enterprises has declined, and casual clothing is also difficult to escape.

Li Ning, Anta Sports, Peak, 361 Degrees, and China Sports have been operating in a slump in five sports brand-listed companies. Among them, Peak's total revenue in the first half of 2012 decreased by 28.5% from 2.256 billion yuan to 1.61 billion yuan, while net profit also fell to 240 million yuan, a decrease of 43.3% year-on-year. Li Ning’s net profit fell by 85% year-on-year in the first half of the year.

In respect of the fair, ANTA’s recently announced 2013 Q2 trade fair data showed that the order amount (calculated by wholesale value) fell by 15% to 25% year-on-year.

Not only has the performance of sportswear been sluggish, but the casual wear market has also been chilly. Senma's three quarterly report released this year showed that from July to September, the company's total operating income was 2.1 billion yuan, a year-on-year decrease of 5.53%; net profit was 225 million yuan, a year-on-year decrease of 36.24%. The situation of Smith Barn is also not optimistic. Its three quarterly report results showed a negative growth. From July to September, the company's total operating income was 2.594 billion yuan, a year-on-year decrease of 13.47%; and net profit was 320 million yuan, a year-on-year decline of 13.4%.