Jordan Shoes Disrupt Sporting Goods Market

Specific data to be released in the first half of the Jordan Shoes companies after the semi-annual report to understand. Repurchase stock, the sale will result in the enterprise and what impact, Magang to Li Ning, for example to make the following analysis: $ 300 million buy-back, zoom into the retail price, after taking into account the discount end, this number is usually to to see about 4.8 million. Retail on the terminal, a shop if the average annual sales of 100 million, it would need 400 discount stores dedicated to selling stock to digest. According to data released by Li Ning Company, Li Ning, the number of 191 existing discount stores, shows that the number of discount stores is difficult to digest these 480 million yuan of stock. Trends for China, the role of online sales is much more important, cases, it is about $ 100 million in e-commerce sales of more than a maximum of no more than two billion of these sales and inventory will not be completely digested, but also included are quarter product sales. e-commerce channels can not be too much for high hopes. listed companies, cash reserves are abundant, they can come up with funds to recover the channel inventory.
Li Ning and trends in China will channel repurchase stock, the two together total $ 500 million into the retail price after the discount, this figure is about $ 1 billion. Repurchase, the inventory will be handled? Insiders jokingly said, destroyed on the spot is impossible, triggering a new round of sporting goods market, the price war seems to be expected. Inventory crisis? Prior to Li Ning, said, in order to speed up the rate of inventory liquidation retail side, plans to recover part of the dealer inventory, adding that this year will put in $ 300 million. Trends in China also said to make 220 million yuan Profit before non-recurring provision for excess inventory buy back the dealer, which will make it a pure interest rate to 17% -19%. words, this ratio is not great, but slightly higher. franchisees and distributors, which reflects the issue is relatively large inventory of their history, so for next year's order is somewhat conservative, and this reflects the two companies from the side of the large amount of inventory status. Industry observers Magang says. Magang also reminded, the current spread of the Li Ning billion, China Dongxiang repurchase amount of two hundred million dollars may not be exact.
Turning to inventory the reasons for, Magang think this goes back to last year's order, the two companies on the market expectations of the future may be too optimistic, which Adidas in 2008 because inventory is similar predicament, to the end of next year, these Air Jordan 2011 Kids Shoes Model:NAJ46181 products need to clean up close to a year's time. Li Ning after the implementation of channel policy, there has been phenomenon, that is, Li Ning, the annexation of large distributors to encourage small distributors, small distributors sales be affected. Meanwhile, Li Ning has made the task of rebranding, enhancing brand value, raise Cheap Jordan Shoes prices, and enhance brand value and then transferred to a single-product retail price was supposed to be a longer process, Li Ning, a fast pace. From this point of view, the dealer hands are all a little inventory in the short term, the retail price increase, while the sales channels and face adjustment, so the routine will be affected shipments, inventory also produced. . Proposed in the strategic transformation of Li Ning, the vertical growth from the past into the level of growth, that is, by increasing the brand value to drive growth. The whole strategy is very important aspect is to enhance overall operational efficiency. Li Ning channels in the past, especially small and scattered to form a situation in the country is very small-scale distributors as much, especially in the four-tier cities.
It's written by jordan shoes date 02.15.2012