Apparel Industry Is Facing Three Bottlenecks: Category, Channel And Management.

< p > autumn wind sends cool, summer heat gradually fade away.

On the commercial street of a city, all sports brands are still working hard to clear the stock.

"Buy one get one free", "second pieces 62% off", "whole court 30 percent off" and so on.

In addition to normal stock clearing activities, A brand stores are promoting the opening school bag Festival, and L brand stores sell and sell the old age spring and Autumn Festival at a lower discount price. H brand leisure series occupy a large area of display panels and walls in the shops. This is a scene of the gold commercial circle in a provincial capital city, or reflects the survival state of all a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > brand.

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< p > from the 2013 mid term results released in August, the operation of each brand is half full and less than /p.

< p > first of all, the revenue, profit and number of stores have declined.

Anta's earnings report showed that revenue fell 14.4% to 3 billion 367 million compared with the same period last year, Lining's revenue fell 24.6% to 2 billion 900 million, XTEP's revenue fell 19.5% to 2 billion 98 million, 31st degree revenue fell 30.4% to 1 billion 998 million, PEAK's revenue fell 27.3% to 1 billion 173 million.

From net profit, Anta fell 18.7% to 625 million over the same period, Lining slipped 518% to 180 million, XTEP slipped 27% to 340 million, 360 degrees fell 65.6% to 200 million, PEAK fell 62.5% to 90 million.

Judging from the number of shops, there are 273 net shops in Anta, 410 in Lining net shop, 75 in XTEP closed shop (7435), 601 in the 31st degree net shop, and 289 in PEAK closed shop.

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< p > on the side of happiness, the worst period is over, stocks are beginning to improve, order confidence is beginning to recover, wholesale to retail is advancing orderly.

2013 the mid term earnings report showed that Anta's inventory decreased by 110 million compared with the same period last year, and Lining's inventory decreased by 60 million compared with the same period last year.

Anta announced that orders for the first quarter of 2014 were higher than the same period in 2013. Its CEO Ding Shi Zhong said that Anta's wholesale pfer to retail business had achieved initial success, while Li Ning Co announced that its change plan had been initially effective. Its earnings showed a slight increase in Lining's gross margin. In addition, Lining's quick reaction commodity has pushed 500 stores, and the next step will continue to expand.

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P has yet to wait for the mid term earnings report to come out. Some media have begun to argue that the sporting goods industry is beginning to recover.

In fact, stocks are beginning to return to good health, but this can not be equated with the recovery of the industry. Adjustment and pformation are still going on, and future challenges are still there.

14Q1 orders for several major sports brands have been booked. Only Anta orders will resume growth. Orders for brands such as XTEP and 31st degree are still not ideal. The prospect of overall recovery is still uncertain.

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The competition pattern of < p > a href= "//www.sjfzxm.com/news/index_c.asp" > garment industry < /a > has changed from brand competition in the past to cross brand competition and cross channel competition.

Nowadays, sports brand competitors are not only sports brands themselves, but also "a href=" //www.sjfzxm.com/news/ "casual wear brand" /a "or" fast fashion brand ", which is the consumption trend change under the surplus commodity economy.

To put it simply, most sportswear consumers do not buy sportswear because they need to exercise. A consumer spends about 1500 yuan a year on clothes, casual wear or fashion, and naturally decreases in sportswear consumption.

The product structure of the two sports brands represented by del Hui and Hongxing Erke is the fundamental reason for the pformation of leisure fashion brands. The international second tier brands such as UMBRO, PUMA, Reebok and so on are marginalized in the domestic market. Whether the sports brand of the domestic market will continue to develop intensively is worth exploring.

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< p > < strong > clothing industry is facing three bottlenecks: category, channel and management. < /strong > < /p >

< p > first, category bottlenecks. Category size determines the size of enterprises. Taking Lining as an example, Li Ning Co has 9 billion 500 million revenue in the rush hour, with nearly 8000 stores, accounting for about 9% of the market share (9 billion 500 million wholesale conversion to about 17 billion of retail sales). Now the total market size of sports products has been reduced. Even if Lining achieves the same market share, it can not return to 9 billion 500 million of turnover. Therefore, we must break through category bottlenecks, such as Anta's FILA and children's wear, Semir's GXG and children's wear, BELLE's women's clothing, all from the category layout.

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< p > besides the bottleneck of channel size, the Chinese market has entered a mature stage. The dividend of urbanization is not yet obvious. < a href= "//www.sjfzxm.com" > sports brand < /a > Guan Jie is an example of channel top rebound. To increase revenue, endogenous growth should be achieved through optimization and management of products. Extension of growth requires channel expansion and category expansion. Besides focusing on the Chinese market, we should also focus on the international market.

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< p > finally, management bottlenecks, categories and channels are resources, management is the ability of resource integration and coordination. For most enterprises that emphasize marketing and wholesale mode, the bottleneck of management is not inferior to category and channel bottlenecks.

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< p > from the quagmire of inventory, it is just a comma, just as the TPG team gave Lining the diagnosis (first step to inventory, the second step to integrate supply chain, channel and marketing resources, and the third step to pform the business mode pformation). The recovery of Chinese sporting goods also needs several stages.

After the release of the mid term earnings report, the price of the company's peers made push ups on the issue price, and Anta's share price broke through the 10 mark.

Among them, apart from revenue, net interest rate, inventory health and 14 year spring order data, all of them are leading the industry. In addition, from the development stage, Anta has integrated the supply chain resources and pformed wholesale business to retail business.

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At the end of P, at the end of 2011, the author judged that the adjustment period of the sporting goods industry would be a watershed and would be a fork in the road.

At the moment, after a href= "//www.sjfzxm.com" > inventory < /a >, next, "what to do and how to do", Anta gives his choice, and where will the other peers go? < /p >