Sports brand is facing a deep adjustment Li Ning flagship store to go empty

The reporter’s investigation found that Li Ning’s quiet closing was not a case in point. Due to the impact of online stores, rents and labor remained high, and the era of multiple domestic apparel brands in the island city was gone. The sports clothing industry is facing a profound adjustment. It is understood that due to the decline in profits, Li Ning and Peak have closed thousands of stores in China this year.

Li Ning flagship store to go empty

Yesterday morning, the reporter went to the original Li Ning flagship store at No. 40 Renhe Road. The three-story building door was closed and a thick layer of dust had fallen on the glass. Through glass doors, the reporter saw that the counters and merchandise in the store had been evacuated, and the ground was covered with a thick layer of earth. Only the advertising billboards on the roof of the giant billboards and window glass that had not yet had time to withdraw were vaguely revealed. It used to exist. Next to a shop owner told reporters that Li Ning flagship store has been closed for two or three months.

When the store was closed, the staff of the franchisee, Qingdao Lizhifeng Co., Ltd., was quite sensitive. “We did not close the door and changed the place and reopened.” The staff revealed that the store was indeed closed, but according to the headquarters Instructed to make strategic adjustments, and has chosen another new site to open a new store.

In-store shop "fitting room"

Recently, the domestic sports and apparel company Peak Sports released a report showing that as of September 30 this year, its authorized operating retail outlets in China was 6,739, a decrease of 1067 compared with the end of last year. At the same time, in the first half of this year, the Li Ning Group made a profit assessment of its stores on the basis of the newly opened 248 stores and closed 1,200 inefficient stores. The proportion of this store is as high as 15%. As of June 30, the number of Li Ning regular stores, flagship stores, factory stores, and discount stores was 7,303, a decrease of 952 from the end of last year. In addition, the total number of stores for Anta Sports has also been reduced by 110 this year. The large-scale closure of domestic sports brands also affected Qingdao, and a number of domestic sports brands have also closed stores with low profitability.

The fierce market competition can be seen from the denseness of the store layout. In Taitung Sanlu Pedestrian Street, on both sides of a short 30-meter road, adidas, Nike, Li Ning, Anta, and Hongxing Erke are among the top five sports apparel brand stores in China and abroad, as well as other sports brand clothing stores. However, compared with the crowded fashion brands and international sports brand clothing stores, the domestic sports brand clothing stores are relatively deserted.

"A lot of customers have gone to the Internet to buy clothes. Our business is certainly not good." In a brand store, in response to a reporter's inquiry, the shopping guide complained that the physical stores had become the fitting room of the shop.

Sports brand faces deep adjustment

However, unlike the unprecedented "winter" in the island sports apparel brand, the foreign brands are rapidly expanding the market. In just a few years, the Japanese clothing giant Uniqlo has opened four large-scale clothing stores in the island city, and sales have risen against the trend. Another clothing brand ZARA is also selling well.

Why is it that there is a situation where there are two things? Island City sports apparel industry how to break? In the interview, most companies are targeting the high inventory problem. Li Ning Company stated that the pressure on channel inventory intensified, the competition in retail terminals has become more intense, and retail discounts have increased. As a result, terminal retail profitability has further declined.

Li Linsheng, a brand clothing agent of Daocheng Sportswear, pointed out the problems existing in the current industry: The development model of the domestic sports brands rushing around and the scale to win has been unable to continue, and labor, rental costs, and the homogeneity of products have caused intensive open stores. Faced with the risk of loss.

Wang Haiyu, a lecturer in marketing at Ocean University of China, pointed out that the way out for the resurrection of the island sports apparel brand is to find a good position. “Brand attraction is the most obvious gap between Chinese and foreign clothing brands.” Wang Haiyu said, whether it is marketing or management There are still many places where domestic brands need to be improved. The island sports brand faces a deep adjustment.