Sports Stocks 2012 Doomsday, Even Seventy Percent Off.

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< p > January 5th, it is reported that in 2012, the Mayan prophecy "doomsday disaster" has not yet arrived, but for mainland listed sporting goods companies listed in Hong Kong, the past year has been called a "catastrophe", and the number of closed stores has hit a record high.

Mainland media reported that a href= "http://sjfzxm.com/news/index_f.asp" > Lining < /a > and PEAK closed more than 1000 stores last year, that is, on average, there are more than 3 stores every day in "doomsday".

In addition, the brand competition has become increasingly fierce, and some products even sell as low as 70 percent off.

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< p > < strong > Lining PEAK last year Qi Guan more than 1000 shop < /strong > < /p >.

< p > according to media reports, the stores closed by Lining are basically located in the poor sales section of the three or four tier cities in the mainland.

Lining, who is close to the company, will continue to close the store. "The goal is to continue to eliminate bad stores and keep good stores".

PEAK's intention to close stores is basically the same. Reports quoted PEAK China executives as saying that "when the economy is bad and sales are shrinking, it is a good time to optimize channels. Closing stores is the process of survival of the fittest".

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< p > Lining, < a href= "http://sjfzxm.com/news/index_x.asp > > Anta" /a "," XTEP "," XTEP "and" PEAK ", the number of these five brand stores has returned to 7000 levels after integration.

Citing industry experts, it is pointed out that under the environment of insufficient consumption power and oversupply of products, the inventory and expanding stores brought by blind expansion in the past few years have become the burden of the major brands. "Normally, 6000 to 7000 stores have already covered 80% markets in the mainland."

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< p > < strong > the major brands compete for discount and go to stock < /strong > < /p >.

< p > because the stock is still high, the major brands are trying to discount, direct purchase and repurchase.

The media revealed that the new products launched by Anta, XTEP, PEAK and 31st degree in 2012 were 20 percent off or even more, and some of the old ones were sold at 50 percent off or 70 percent off.

Lining is no exception. According to former chief executive officer Zhang Zhiyong before leaving, the discount rate of factory stores and discount stores was generally 50%-53% in 2012.

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< p > < strong > almost unprofitable agents complain of pain < /strong > /p >

What is more serious is the price war without bottom line, so that enterprises sometimes have to push goods at close to zero profits. This has become an inevitable act of "breaking the tail to survive", which has seriously dampened the enthusiasm of agents and led to a "vicious circle". P

There is a second tier city leisure less than a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > agent said, except manual, shop rent, the profit space has been very limited, "as long as the brand direct shop discount, almost can not earn money."

There are also enterprises to control the generation of new inventory, continuous establishment of direct and discount stores, and gradually increase the control of sales terminals.

However, the larger the proportion of Direct stores, the higher the cost of operation, which requires enterprises to have a more secure cash flow level to pay for all kinds of operating expenses.

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