China'S Sports Shoes And Clothing Enterprises Need To Be Pferred To Endogenous Growth

Recently, data have been reported that since 2011,

What causes the Chinese sporting goods enterprises to fall down collectively?

Without looking into the cause, it is even more surprising that, despite the fact that China's consumer confidence index dropped from 105.8 in May to 97.03 in November, retail sales remained strong.

Data show that in November this year, the total retail sales of goods in China amounted to 1 trillion and 600 billion yuan, up 17.3% from the same period last year, and the total accumulated amount was 16 trillion and 350 billion yuan.

So what is the performance of these sporting goods companies? Data show that as of the first half of this year, the mid term of Lining.

These painful experiences are difficult to escape from the "great leap forward" of sporting goods companies on the road to expansion.

According to China Merchants Securities report, there are about 8684 men's clothing companies listed in A shares and Hongkong market in 2010.

In the same period, the size of sporting goods market is only 1/2 of men's clothing, but the number of shops is about 57893, which is 5.7 times that of men's clothing companies.

Take Lining as an example.

At the end of 2004, the total number of shops at the beginning of the year was 2887, of which 2526 were Franchised Distributors, 120 were self operated retail stores and 241 were self appointed special counters.

By the end of June 2011, Lining's store had increased to 8163, and it has increased 1.83 times in six and a half years.

However, the thinking mode of "opening more stores and making more profits" has reached the turning point for sporting goods companies.

In fact, after 10 years of rapid growth, Chinese sporting goods enterprises have entered the stage of mature development. Therefore, when the number of channels reaches a large base, they can only raise the gross profit margin through brand pull through brand break out, that is endogenous growth, which is the only way for the development of enterprises.

In 2010, many domestic sporting goods companies were expanding too fast. Now almost every household has maintained close to 7000 channels.

Now, the whole industry is facing adjustment, which requires first of all.