Peak Stocks Drop by 26.9% Becomes the First Inventory Decreasing Sports Brand

On March 11th, Peak, a well-known professional sports brand, released its annual financial report. Affected by the global economic downturn and the slowdown in the growth of the domestic market, Peak's turnover in 2012 declined, but thanks to the active improvement of inventory and optimization of channels, the high inventory problem plagued sports brands saw a relief hope in Peak. - Peak stocks declined from 530 million yuan in the middle of last year (as of June 30, 2012) to 3.9 billion yuan on December 31, 2012, a drop of 26.9%.

“Although the growth of the industry has slowed down significantly in the past, we are still optimistic about the future development of the sporting goods industry.” Peak Sports CEO Xu Zhihua said that after a series of positive measures, Peak’s inventory declined for the first time in the industry.” This is a positive signal for the sporting goods industry to pick up."

The first drop in inventory stems from positive adjustments

The sports industry is considered to be a sunrise (specialty store) industry, and its development space and development potential are very large. Some agencies predict that in 2015, the scale of China's sports industry will reach 2 trillion yuan. Sports brands are not faced with a shrinking consumer market, but high inventory has dragged down the development of sports brands.

Compared with most brands' crazy discounts and price cuts, Peak has adopted an aggressive market and marketing strategy, and through the adjustment of the operating model, the reform of the order model, the transformation from a wholesale enterprise to a retail enterprise, from the pursuit of order growth to single store revenue reform The implementation of a refined and flat market strategy has greatly optimized the channels.

This series of positive adjustments also made Peak gain. In 2012, the total inventory was down by 26.9% from the first half of the year, and it was also down by more than RMB 30 million compared with the end of 2011. Peak has also become the first company in the sporting goods industry to have a sharp decline in inventory.

At the same time, Peak's distributors have grown from 50 at the end of 2011 to 59 at the end of 2012, an increase of nearly 20%. The increased number of dealers and more segmented regional markets will help Peak to respond more quickly and quickly to the changing consumer market and meet changing consumer demand.

Focus on the brand and focus on the upgrading of corporate competitiveness

"Insist on the core positioning of basketball and adhere to a strategy. The two markets (China and overseas markets) should go hand in hand." Under the guidance of this core development policy, Peak pays more attention to brand professionalism and focuses on its dominant basketball field. Product and promotion efforts have deepened the international basketball market and extended to the popular consumer markets such as running, tennis and football.

With a clear development goal, Peak positioned 2013 as an upgrade year, including brand upgrades, channel upgrades, terminal management upgrades, product upgrades, and market upgrades. Through the integration of international resources, it will further increase its technological products and functional products. Leading the industry in the promotion of product innovation, sub-regional and sub-market marketing and promotion strategies that fit the local market make Peak's brand concept and product performance more acceptable to target consumers.

In early 2013, Peak signed the NBA's best international player Tony Parker. The NBA's 3rd NBA champion, 5th All-Star, and MVP contenders this season will further increase Peak’s global presence. Visibility and influence.

Peak's "internationalization" strategy brings a direct market effect. According to the latest news, Peak products have entered the Canadian market - Real Sports Apparel sports goods store under Maple Leaf Sports, a well-known Canadian sporting goods company, and became Canada's first sales company. Sports products store. The strong performance of overseas markets has helped Picks to take the lead in realizing the recovery of the industry.

Peak Sports CEO Zhihua Xu said that after a long period of accumulation and cultivation, Peak's work in brand internationalization and global layout has been at the forefront of the industry. “We are confident that through the good interaction between the international market and the domestic market, we will do a good job of enhancing brand competitiveness and product competitiveness. After the previous round of active inventory clearing and order adjustment, Peak will have the opportunity to take advantage of this industry integration. With the development opportunity of increasing brand concentration and expanding business, we believe Peak can quickly recover from the current industry adjustment and achieve stable growth in the next few years."

Xu Zhihua believes that as urbanization deepens and people pay more attention to health, China’s per capita sports goods consumption will still return to growth. In addition, the undeveloped international market demand will also be conducive to the development of the industry in the future.