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Sports Brand Closes Shops And Foreign Capital Enterprises Puma Intends To Close More Than 90 Stores

2013/3/4 9:21:00 25

Puma Sports Brand Industry Sports Brand Shop Tide

domestic sports brand "close shop tide" has spread to foreign-funded enterprises.

after XTEP announced that it planned to close 100 to 200 stores in 2013, the world's third largest sports brand, Germany, a href= "http://sjfzxm.com/news/index_x.asp" > PUMA < /a, announced that it would close more than 90 unprofitable shops, which is part of its pformation and cost reduction plan.

in the third quarter of 2012, net profit fell sharply by 85%. Recently, Puma group reported that the group's losses were as high as 56 million 800 thousand US dollars in the fourth quarter of 2012.

Less than P, the industry believes that in addition to the continuing downturn in the European market and the challenges of the Chinese market, this performance downturn is also related to Puma's lack of good performance in the continuing trend.

Like the recent closing of the local sports brand, Puma has turned off the loss stores, and has chosen new markets.

sales bottleneck / /p >

Puma's previous earnings report showed that its consolidated sales increased by 8.7% in 2012, slightly lower than expected.

Puma's gross profit margin dropped from 49.6% to 48.3% due to inventory clearance. Especially, the a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > products dropped the most, and the gross profit margin decreased from 49.1% to 46.5%.

In the fourth quarter of last year, Puma lost $56 million 800 thousand.

Besides, P also suspended a number of unprofitable cooperation agreements and withdrew from the European Rugby market. In 2013, the production of nautical products will be halted and the focus on outdoor sports products will be on Puma.

Puma chief executive said in his earnings report that the group's first goal is no more than 4 billion euros, but a higher profit margin.

for Puma sales encountered bottlenecks, industry insiders believe that the continued downturn in the European market and the challenge of China's market increase is the external cause.

According to Zhang Qing, founder of sports Consulting Co. Ltd., the current situation of Puma has the influence of the industry trend, but it has something to do with its own business.

Zhang Qing told reporters that in the past Puma's distribution was done through agents, but Puma's agents were not mature enough to have strong brand and channel bargaining power. In recent years, Puma's progress in the Chinese market has not been very smooth.

In the context of the adjustment of the sporting goods industry, the second tier brand like Puma has been hit harder.

in recent years, Puma has not been able to lead in the continuous trend.

In the industry view, Puma's positioning is more embarrassing, the price is higher than the local brand, but the layout of small cities is less than local brands.

Compared with Nike and Adidas, consumers' enthusiasm for Puma seems to be relatively low. Although there are lower discounts, there are not many customers.

"Puma is afraid to get out of the predicament, I am afraid it must be adjusted."

Zhang Qingru said.

closed or unprofitable shop / /p >

insiders pointed out that the reduction of stores is part of Puma's adjustment.

.

reporters understand that Puma has implemented the pformation and cost reduction plan since the second half of 2012, and this year will continue.

The closure of more than 90 unprofitable shops is also aimed at reducing the cost of the implementation, and correspondingly, it will reduce about 450 jobs.

P, Puma said it will continue to open new stores in profitable locations in 2013, with the main target in emerging markets.

It is expected to open 540 stores by the end of 2013, but it will decrease compared with the 590 new stores in 2012.

At the same time, the company is also cutting production lines that affect profitability, and plans to reduce about 30% by the end of 2015.

Zhang Qing thinks that because of the poor profitability of the shops, the channel business has always been the best choice, and there will be such adjustments.

And turning off unprofitable stores, choosing new markets and setting up shop is also a sign of its active adjustment.

Although there is no specific area for closing stores, there should be no doubt that the Chinese market is in the closed shop area.

it is worth noting that according to the view that under the background of slowing market growth and increasing the pressure of overall profit margins, the closing trend will continue to spread throughout the sports industry.

Du Yanhong, a researcher in the retail industry of CIC, told reporters that the reason why stores are more concentrated is that the sports business environment is low and the market demand for sporting goods is relatively low.

"at present, there are some inefficient shops that can reduce the company's expenses and reduce operating costs. Closing inefficient stores can effectively improve the company's performance and play an important role in reducing inventory. It can be seen as an internal shuffle of enterprises, which can eliminate poor experience stores and concentrate on developing quality stores."

Du Yanhong explained.

Zhang Qingye believes that the whole sports brand collectively closes the whole bottleneck of the industry.

On the one hand, the era of high gross profit and high growth rate has gone away; on the other hand, the growth pattern of increasing sales through a large number of new stores has been difficult to continue.

Under the background of "P >, Puma's follow-up or opportunity still exists.

< < a href= > http://sjfzxm.com/news/index_c.asp > sports brand industry > /a > homogenization is more serious, and Puma has made its own characteristics, if we can continue this practice, there is still a chance.

But Zhang stressed that only opportunities exist, but whether it can be taken into account from the strategic innovation level to the tactical innovation level remains to be seen.