mainland Branded Athletic Apparel Industry: The Brand To Lead The Value
Mainland’s major sportswear companies have issued large-scale surprise to the market in the first half of 2008 results. By the sales network expansion and product upgrades to promote its revenue growth ranging from 52-174%, profit growth of between 68-214%. The most surprising is that, even though the first half of the cost of production continued to rise, but most of the company’s profit margins are still on the rise. The three largest sportswear companies, there are two profit margins rise, a flat.
We believe that the excellent performance of profit margins, should be attributed to management of goods and raw materials prices, hedging strategies, high-margin apparel accounted for the increase in the proportion of product mix, as well as increasing brand awareness grow with the increase bargaining power. In addition, the Beijing Olympic Games In addition to raising public awareness of the sport, but also contributed to the overall demand for domestic sports apparel. According to market estimates, from 2007 to 2010, the sports apparel sales in the mainland can still maintain more than 2 percent of annual growth.
Many investors believe that the Olympic sports brand apparel industry generated effects will disappear with the popularity, sales growth also slowed, resulting in excess inventory retail outlets there. Mainland sportswear company’s share price has come down substantially from their peaks last year, from the side to reflect the views of this part of investors. Then, after the sportswear industry, the prospects for the Olympic Games gone, as its stock price performed far less bleak than do?
The guidelines from the sportswear company’s management and an exciting quarter sales performance, we can find different from the actual situation and share price performance. One of the major sportswear company’s management believes that its distributors can still be positive in this quarter, 80% of the stock sold, maintaining a normal sales situation. In addition, a number of major sportswear companies recently held the first quarter of 2009, sellers will be the distributor, the overall order can still maintain a 40% -50% of annual growth. The sales so amazing, clearly demonstrate industry-leading brands in the post-Olympic growth is not as pessimistic as expected.
In the long run, due to the relatively limited financial resources, coupled with increasingly affluent consumer base pairs of high-grade products, demand for heating, the market share of the smaller low-end brands will not be able to front-line domestic and foreign well-known brand competition. Those who can strongly in investing resources in product development, logistics management, enhance operational efficiency distributors, as well as through targeted advertising for the brand to establish a unique corporate image and ultimately obtain a greater market share.
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