China'S Sports Shoes And Clothing Market Is Not Ideal, Kappa Sales Fell Sharply.

China movement

The market is still not ideal this year. Following the announcement of the year-on-year decline in Anta and Lining's performance, it is a well-known brand of sportswear shoes.

China's main trend also released its 2011 performance report today.

Data show that, due to inventory repurchase, inventory impairment and other factors, China's sales in 2011 dropped by 35.7% to 2 billion 740 million yuan, while net profit dropped by 93% to 102 million yuan.

China's trend is the creation of the former Li Ning Co executive Chen Yihong 9 years ago. The main Kappa brand product has maintained rapid development in 9 years. However, in 2011, the adjustment of China's sporting goods year, China's trend also encountered difficulties, and created the company's 9 year history of multiple "first", highlighting the difficult trend of China's operation in 2011.

Chen Yihong, chairman of China trend board, said in the annual report that China's trend group has faced many challenges and experiences for the first time since its establishment in the face of various macroeconomic and industrial slump.

The first "first" is the first time to buy a repurchase plan for dealers.

Because the overall sales situation is not good, dealers have suffered enormous inventory pressure, so the company launched a buyback plan for dealers, reducing inventory pressure of distributors, and improving profit margins.

Throughout the year, China completed the repurchase price tag of 1 billion 450 million yuan, and repromoted the products through factory stores and e-commerce.

The second "first" is the first time that revenues and profits have declined.

As a result of the inventory repurchase of dealers, and the reduction in the number of orders placed by dealers, China's revenue in 2011 was 2 billion 740 million yuan, down from 4 billion 260 million yuan in the previous year, and its net profit in 2011 was 102 million yuan, a 93% decrease compared with 1 billion 464 million yuan in the previous year.

The third "first time" is the first negative growth in the number of shops.

Due to the downturn in the market, China has launched a policy of integrating the store network. It agreed that the distributors closed the stores with poor profit distribution in the year, and concentrated resources on the stores with higher store efficiency to improve the overall sales efficiency and the profit margin of dealers.

Data show that as of the end of 2011, the number of stores in China was 3119, a decrease of 632 from 3751 at the end of last year, a decrease of 16.8%.