Recovery Of China'S Sports Apparel Industry

In October last year, the State Council issued the "opinions on speeding up the development of sports industry to promote sports consumption" (hereinafter referred to as "opinions"), and the total scale of sports industry reached 5 trillion yuan by 2025.

For domestic

This policy can serve as an engine for the market.

The performance of Listed Companies in many industries may indicate that the two take-off of the market is coming.

After Anta (02020, HK) announced its first 2014 performance in February, 360 degrees (01361, HK) and PEAK (01968, HK) handed in the 2014 performance answers in March 10th and yesterday (March 11th) respectively.

The reporter noted that Anta's revenue grew by 22.5%, net profit increased by 29.3%, and the turnover of 360% was 3 billion 906 million yuan, up 9% compared with the same period last year, with net profit of 398 million yuan, up 88.2% over the same period last year.

PEAK's performance is also commendable.

Increased 8.7% to 2 billion 841 million yuan, net profit increased 31.3% to 321 million yuan.

With the performance of these three brands generally improving last year, the industry believes that

The two growth of the industry is coming.

However, in the view of the industry, the revitalized local sports brands need to be on guard against competition from international giants.

Orders, inventory and other indicators are getting better.

In terms of sales growth, 310% data showed that in 2014 winter products and spring / summer and autumn products orders in 2015 increased by 8%, 11% and 16% respectively.

The reporter noted that when the annual performance was announced last month, Ding Shizhong, chairman and CEO of Anta's board of directors, said that Anta had realized the growth of the order amount for 7 consecutive quarters, and the goal of 2015 was to break tens of billions of revenue.

PEAK chairman Xu Jingnan pointed out that the total amount of orders in the third quarter of 2015 was double digit growth year by year, which is the sixth consecutive quarter of the increase in the amount of orders.

In fact, inventory has always been a pain spot in the sports brand industry, and the problems such as the decline of gross profit and the decline of brand value have been emerging one after another.

At present, this problem has been basically alleviated.

Ding Huihuang, chairman of the 31st degree board, pointed out that the retail discount has also narrowed with the normal stock level in stores.

However, it still stressed that if companies increase production again, the industry will oversupply again.

"I hope that the industry has learned from past experience."

International brand competition can not be ignored

2014 was the year when China's sports apparel industry began to recover after several years of downturn.

With the popularity of sports brands such as Anta, PEAK and PEAK last year, the industry believes that the two growth of sportswear is coming.

However, it is not just the local sports brand that sees the dividend of opinion.

In March 9th, Gao Jiali, managing director of Adidas Greater China, told the daily economic news reporter that he welcomed the policy put forward by the Chinese government to promote the development of the sports industry.

Data show that Nike Greater China 2014 fiscal year (up to May 31, 2014) to achieve revenue of $2 billion 602 million, Adidas Greater China 2014 fiscal year (end December 2014) to achieve revenue of 1 billion 811 million euros.

"In the three or four tier cities, local brands have natural advantages and prices are more close to the people.

However, the preferences of consumers in this part of the market are also changing. The emphasis on sports lifestyle makes them pay more attention to products besides price, and international brands may be more attractive in this respect.

A sports industry analyst said.